Indonesia Could Lose Rp300 Trillion from Raw Material Exports
Indonesia Could Lose Rp300 Trillion from Raw Material Exports
Reporter
March 28, 2026 | 05:50 pm
TEMPO.CO, Jakarta - The Director of the Danantara Indonesia Investment Management Agency, Lucky Lukman Nurrahmat, revealed the potential loss of state revenue from raw material exports. “Basically, we are letting go of the potential income of around Rp300 trillion,” he said at the BRIN building in Jakarta on Friday, March 27, 2026.
Lucky made this statement while discussing investment opportunities arising from the challenges in the livestock sector. According to him, the export of downstream products remains suboptimal, with only about 20 percent of products exported in their raw state. Lucky estimated that with this amount, the country is losing Rp300 trillion in potential income.
Overall, Lucky outlined four opportunities stemming from issues in the livestock sector. Firstly, the government aims for food self-sufficiency by 2029. “Currently, we spend around Rp10 billion per year to import food. This is a policy issue, but also an opportunity for us,” he said.
The second opportunity is domestic demand. He predicted that food demand is growing by 5-7 percent per year, which can drive the demand for protein.
The third opportunity is in regional exports. Lucky explained that ASEAN’s food trade is estimated to reach US$800 billion by 2030. To capture this value, he said, Indonesia must have advanced technology and production capacity.
The fourth opportunity lies in the suboptimal export of downstream products, since most of the trade consists of raw materials.
During the same occasion, Lucky revealed the investment opportunities in the poultry sector. He stated that Indonesia currently ranks fifth globally as a broiler chicken producer, with around 3.5 million tons per year.
Meanwhile, the global poultry export market is estimated to reach US$9 billion with an 8 percent growth. However, Indonesia’s export penetration is only 2 percent, far behind Thailand at 40 percent.
To support the poultry sector, Lucky said Danantara is working on an integrated livestock project. The livestock farm will become part of the poultry supply chain, such as day-old chickens (DOC) and grandparent stock (GPS).
He mentioned that Danantara has laid the groundwork for several livestock projects in the first quarter of this year. Additionally, Lucky mentioned the free nutritious meal program to support the demand for the poultry sector. Moreover, by 2030, there will be approximately 32,000 kitchens.
Lucky said that Danantara is empowering small-scale farmers by expanding GPS capacity and micro-enterprise credit facilities. “We (Danantara) are not only providing capital, but also building national-level capacity and technological capability,” he said.
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