Ministry of Agriculture and Kadin Clarify Rumours of Chinese Investors Entering Indonesia's Egg Business

Jakarta, CNBC Indonesia - The Ministry of Agriculture (Kementan) and the Indonesian Chamber of Commerce and Industry (Kadin) have spoken out regarding reports of Chinese investors planning to enter the layer chicken farming business in Indonesia.

The Director General of Livestock and Animal Health (PKH) of the Ministry of Agriculture, Agung Suganda, stressed that the circulating information is still limited to initial overtures and does not point towards the large-scale investment that has been widely reported.

“Today’s meeting included clarifying the news reports, where there are plans for Chinese investors to invest in layer chicken farming,” said Agung when met after the meeting at his office in Jakarta on Tuesday (12/5/2026).

He stated that the government, in this case, requested direct explanations from representatives of Kadin Indonesia to ensure that the information received by farmers remains accurate.

“Mr Cecep from the Kadin representatives also explained it earlier, and of course, this is to provide valid and accurate information for layer farmers in particular,” he said.

Vice Chairman of Kadin Indonesia for Livestock, Cecep M. Wahyudin, described the information circulating in the public as overly speculative and not in line with the facts on the ground.

“This is so as not to mislead, because the information that’s circulating, I think, is too misleading and too premature,” said Cecep on the same occasion.

He explained that Kadin indeed serves as the entry point for communication for investors and business actors, both domestic and foreign.

“In reality, Kadin is the door and window for investors and business actors in Indonesia, both local and foreign, so we welcome any guests who come,” he said.

However, Cecep emphasised that discussions with the Chinese delegation are still in the early stage of exploration and no investment decisions have been made.

“We need to explain that this is the initial stage of plans or interest from investors and a delegation from China who are interested in entering Indonesia to develop chicken farming in Indonesia,” he clarified.

“So it’s still in the socialisation stage, there are no development plans as large as what’s been reported,” Cecep continued.

He assured that Kadin understands the current condition of the national egg industry, which is experiencing a production surplus, so business development must still consider market balance.

“Kadin certainly understands the supply and demand situation, what the conditions are like, because Kadin has continuously communicated with several ministries, especially the Ministry of Agriculture,” he said.

“So we know very well what we should promote and what we shouldn’t,” he added.

Cecep also dismissed the notion that such cooperation would displace local farmers. According to him, the main focus is instead to strengthen national production capacity through the transfer of modern farming technology.

Furthermore, he mentioned that chicken egg needs are expected to continue increasing with the implementation of the Free Nutritious Meals (MBG) programme. Assuming 60 million beneficiaries and consumption of two eggs per week, egg needs could reach more than 480 million eggs per month.

Cecep also revealed that he had received a visit from a delegation of the Chinese egg industry on 21 April 2026, to discuss opportunities for investment cooperation and technology transfer in the layer chicken sector, particularly in Aceh.

Nevertheless, he emphasised that the Chinese company would not become a vertical integrator controlling the entire national poultry business chain.

“The Chinese company is expected to bring modern farming technology to improve efficiency and quality of farm production through the concept of horizontal integration,” he explained.

Cecep disclosed that the cooperation plan has a target investment of around Rp1.4 trillion for building breeding farms, feed mills, and egg processing facilities in Aceh, in partnership with people’s farmers.

In addition, Kadin, along with the Ministry of Agriculture and the Ministry of Cooperatives, is said to continue pushing for the strengthening of people’s farmers and village cooperatives.

“Then Kadin, together with the Ministry of Agriculture and the Ministry of Cooperatives, continues to intensify efforts on how to accelerate and expand people’s farmers, so between the news and reality, this is very far from the facts,” Cecep concluded.