Government Plans Integrated Livestock Ecosystem with Brazilian Investor to Support Free Nutritious Meals Programme
Jakarta — The government plans to develop an integrated livestock ecosystem, a move expected to support domestic beef and dairy supply, including for the Free Nutritious Meals (MBG) programme.
The plan was a key topic of discussion in a meeting between Transmigration Minister Iftitah Sulaiman Suryanagara, Deputy Investment and Downstreaming Minister/Deputy Head of BKPM Todotua Pasaribu, Director General of Livestock and Animal Health at the Ministry of Agriculture Agung Suganda, and representatives of Brazilian investor Asia Beef.
Todotua explained that the discussions focused on establishing investment in a cattle farming ecosystem, encompassing beef cattle, dairy cattle, and downstream processing.
"There will be a dairy industry there, and crucially we can support one of the government's programmes regarding meat supply for the Free Nutritious Meals programme," Todotua said in a press statement received on Friday (16/5/2025).
As an initial phase, the government will promptly launch a pilot project in a Transmigration Zone in East Sumba Regency, East Nusa Tenggara (NTT). The plan involves utilising 10,000 hectares of land to breed 5,000 female beef cattle.
"What we discussed today, we hope can be started and realised this year. This is a concept concerning an agricultural livestock ecosystem within a downstreaming framework," he said.
Todotua stated that the primary objective of this major cattle ecosystem development plan is to reduce imports of processed cattle products. Given the enormous domestic demand for meat and dairy, Indonesia represents a highly promising market.
"This is very promising — the investor has already explained that Indonesia has enormous potential for developing this. We just need to carry out a major consolidation, and later this pilot project will be managed as a single ecosystem, and we will create a zone concept that also addresses downstreaming in this industry," Todotua explained.
Meanwhile, Transmigration Minister Iftitah Sulaiman Suryanagara said one of the biggest challenges in the livestock industry relates to land availability. The cooperation concept therefore centres on empowering transmigration zone areas.
"We currently manage 3.1 million hectares of Transmigration HPL land. Of that, approximately 525,995 hectares remain available for development. This is what we are offering to the investment community under a new concept," Iftitah said.
"Under the old transmigration model, each transmigrant was allocated two hectares of land. Going forward, we will only allocate a house and yard, while the land itself will be communalised," he continued.
Iftitah explained that the communalised land would become a community corporate asset, which the government would convert into equity in the form of shares distributed to the community.
"In our discussions with the company and the investor, they were very enthusiastic about this concept, because it enables corporate cooperation — profit sharing between the community and investors. We will flesh out the detailed planning," he said.
The plan was a key topic of discussion in a meeting between Transmigration Minister Iftitah Sulaiman Suryanagara, Deputy Investment and Downstreaming Minister/Deputy Head of BKPM Todotua Pasaribu, Director General of Livestock and Animal Health at the Ministry of Agriculture Agung Suganda, and representatives of Brazilian investor Asia Beef.
Todotua explained that the discussions focused on establishing investment in a cattle farming ecosystem, encompassing beef cattle, dairy cattle, and downstream processing.
"There will be a dairy industry there, and crucially we can support one of the government's programmes regarding meat supply for the Free Nutritious Meals programme," Todotua said in a press statement received on Friday (16/5/2025).
As an initial phase, the government will promptly launch a pilot project in a Transmigration Zone in East Sumba Regency, East Nusa Tenggara (NTT). The plan involves utilising 10,000 hectares of land to breed 5,000 female beef cattle.
"What we discussed today, we hope can be started and realised this year. This is a concept concerning an agricultural livestock ecosystem within a downstreaming framework," he said.
Todotua stated that the primary objective of this major cattle ecosystem development plan is to reduce imports of processed cattle products. Given the enormous domestic demand for meat and dairy, Indonesia represents a highly promising market.
"This is very promising — the investor has already explained that Indonesia has enormous potential for developing this. We just need to carry out a major consolidation, and later this pilot project will be managed as a single ecosystem, and we will create a zone concept that also addresses downstreaming in this industry," Todotua explained.
Meanwhile, Transmigration Minister Iftitah Sulaiman Suryanagara said one of the biggest challenges in the livestock industry relates to land availability. The cooperation concept therefore centres on empowering transmigration zone areas.
"We currently manage 3.1 million hectares of Transmigration HPL land. Of that, approximately 525,995 hectares remain available for development. This is what we are offering to the investment community under a new concept," Iftitah said.
"Under the old transmigration model, each transmigrant was allocated two hectares of land. Going forward, we will only allocate a house and yard, while the land itself will be communalised," he continued.
Iftitah explained that the communalised land would become a community corporate asset, which the government would convert into equity in the form of shares distributed to the community.
"In our discussions with the company and the investor, they were very enthusiastic about this concept, because it enables corporate cooperation — profit sharing between the community and investors. We will flesh out the detailed planning," he said.