Integrated Poultry Farming Project Worth Rp1.2 Trillion Built in Sumbawa
MATARAM — The West Nusa Tenggara provincial government and PT Rajawali Nusantara Indonesia (ID Food) have signed a memorandum of understanding (MoU) for development of an integrated poultry industry worth Rp1.2 trillion in Sumbawa Regency, West Nusa Tenggara, to strengthen agricultural value chains and regional food self-sufficiency.
Governor of West Nusa Tenggara Lalu Muhamad Iqbal stated that the integrated poultry industry project is not merely a livestock sector investment, but represents a major strategic initiative to improve the welfare of smallholder farmers whilst strengthening regional food independence.
“For West Nusa Tenggara, this is not just an ordinary investment project. It is a strategic step to build a poultry farming ecosystem that is more equitable and empowers smallholder farmers,” he said on Tuesday (10 March 2026).
The MoU was signed by West Nusa Tenggara Governor Lalu Muhamad Iqbal together with ID Food Chief Executive Officer Ghimoyo, witnessed by the Director General of Livestock and Animal Health at the Ministry of Agriculture Agung Suganda at PT Rajawali Nusantara Indonesia’s office in Jakarta on Monday (9 March 2026).
According to the governor, two strategic sectors within the poultry industry—namely day old chick (DOC) breeding and feed production—have hitherto been dominated by large-scale enterprises. Consequently, many smallholder farmers find themselves in partnership arrangements that allow them to survive but make it difficult to develop independently.
“With the arrival of the integrated poultry industry in West Nusa Tenggara, the government hopes to create a healthier business structure that provides greater scope for local farmers to develop independently,” said Iqbal.
The governor also highlighted the need for livestock products in West Nusa Tenggara, particularly eggs and chicken meat, which still face deficits and must be partially supplied from outside the region.
Furthermore, rising food demand from the national school meal programme (MBG) is anticipated to significantly increase demand for livestock products in the coming years.
“Currently the number of beneficiaries of this programme in West Nusa Tenggara has approached a thousand nutrition service points (SPPG). This means the demand for food supplies, including livestock products, will continue to increase,” he explained.
Because of this, according to Iqbal, developing an integrated poultry industry becomes crucially important to ensure supply resilience whilst opening up new economic opportunities for West Nusa Tenggara’s people.
He also emphasised his readiness to provide full support to ensure the project runs smoothly, particularly in terms of logistics connectivity, infrastructure support, and strengthening the regional livestock business ecosystem.
“God willing, whatever falls under our responsibility at the provincial level will be completed as quickly as possible so that this project can commence and deliver tangible benefits for the community,” he said.
This MoU also represents a follow-up to the groundbreaking ceremony for the Rp1.2 trillion integrated poultry value chain megaproject that has already commenced in Serading Village, Moyo Hilir District, Sumbawa Regency.
The project is designed to establish a modern, integrated poultry industry system spanning from provision of superior breeding stock, feed, production, to processing and distribution of livestock products.
ID Food Chief Executive Officer Ghimoyo stated that as a state-owned food holding company, the company possesses strong capacity to support national livestock sector development through its network of logistics, distribution, and food product processing.
Currently, ID Food maintains an extensive distribution network comprising 74 distribution branches, 24 cold storage facilities, 1,051 dry storage units, and more than 900 logistics vehicles spread across various regions of Indonesia.
Through this partnership, ID Food will develop an integrated livestock ecosystem in West Nusa Tenggara through various stages of the production value chain.
At the upstream stage, the company will support provision of basic livestock requirements such as superior breeding stock, feed, medicine, and vaccines.
At the production stage, smallholder farmers will be encouraged to develop their enterprises through contract farming schemes and offtake agreements to ensure market certainty for their output.
Additionally, farmers will receive training, technical assistance, and financing access through various funding schemes including investment credit, working capital credit, and people’s business credit (KUR).
“Meanwhile, at the downstream stage, ID Food will strengthen processing of livestock products through facilities for poultry slaughterhouses, carcase processing, to product packaging, which will subsequently be marketed through the national distribution network,” he said.