29/05/2026
MoA with State-Owned Enterprises Strengthen Integrated Poultry Downstream Program in Bone to Support Smallholder Farmers
Makassar — The Ministry of Agriculture (MoA), together with state-owned food enterprises (SOEs), has reaffirmed its commitment to developing an integrated poultry downstream industry in Bone Regency, South Sulawesi, as part of efforts to strengthen smallholder farming and establish new food production hubs outside Java. The program is designed to integrate the entire supply chain, from breeding and feed production to farming operations and market absorption for smallholder farmers.
Director General of Livestock and Animal Health Services at the MoA, Agung Suganda, said the integrated poultry downstream initiative is considered a national strategic project closely monitored by the central government due to its long-term role in building Indonesia’s smallholder-based poultry industry.
“This is not a small initiative. It is a national strategic project aimed at building an integrated poultry downstream ecosystem while strengthening the position of smallholder farmers,” Agung said during a coordination meeting on the project in Makassar on Thursday (May 28, 2026).
According to Agung, South Sulawesi was selected as one of five priority provinces for the national poultry downstream development program because of its strong smallholder farming base and its significant corn production, which serves as a key feed ingredient. Bone Regency was chosen as the main location due to its ecosystem readiness and strong support from the local government.
“If Bone succeeds, InsyaAllah, other regions will be able to follow,” he said.
Agung explained that the government’s model places smallholder farmers at the center of the ecosystem. Through state-owned enterprises, the government will strengthen upstream sectors by providing breeding stock and feed, while farmers’ production will be absorbed through an integrated partnership scheme.
“The state, through SOEs, will provide breeding stock and feed while also absorbing the farmers’ output. This is the spirit envisioned by the Minister of Agriculture,” Agung said.
Bone Regent Andi Asman Sulaiman said the local administration is fully prepared to support the acceleration of the program, which is expected to create new jobs and strengthen the regional economy.
“Bone has around 60,000 hectares of corn farming areas, and during certain seasons it can reach up to 120,000 hectares. With this integrated poultry downstream program, we are grateful that feed raw materials can eventually be supplied from our own region,” Andi Asman said.
He also assured that the local government is ready to assist with various operational needs, including permits, workforce support, and materials to help ensure the project moves forward efficiently.
“If there are matters related to permits, land, manpower, or materials that we can support, we are ready to help so the project can move forward more quickly and in accordance with regulations,” he said.
Director of Business Operations II at PT Berdikari, I Putu Yastika, emphasized that the involvement of state-owned enterprises goes beyond developing a livestock project and rather builds a sustainable business ecosystem that provides certainty for smallholder farmers from upstream to downstream.
“This is not a small-scale project. It is an important part of the national poultry downstream development agenda that must be built collectively,” he said.
He added that strong collaboration among all stakeholders is essential to ensure the economic benefits are truly felt by communities and smallholder farmers.
“Openness and strong collaboration are key to the success of this program. It will not succeed without good communication and synergy among all parties,” I Putu said.
Meanwhile, Chairman of the People’s Economic Empowerment Institute (LPER), Mulyadi Atma, said smallholder farmers in South Sulawesi are ready to support the integrated poultry downstream initiative because it offers the business certainty that independent farmers have long needed.
“We hope the program can immediately move forward at the farming level by involving independent farmers across South Sulawesi,” Mulyadi said.
According to him, the partnership model developed through the program positions smallholder farmers as key players in the livestock business chain, providing greater certainty for both raw material supply and market access.
“The state is present through SOEs, supported by the government, to create certainty in both raw materials and market access. This is what smallholder farmers have been waiting for,” he said.
The MoA believes the integrated poultry downstream development in Bone could become a national model for modern livestock development based on partnerships, not only strengthening food security but also improving the welfare of smallholder farmers. (*)

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