Rupiah Weakens; Farmers Say Feed Prices Rise as Raw Materials Still Imported

Indonesia’s poultry feed industry remains highly dependent on imported raw materials. According to Kusnan, the chairman of the Indonesian Independent Smallholder Poultry Farmers Association (Pemindo), this condition makes the livestock sector vulnerable when the rupiah depreciates against the US dollar.

‘If feed prices have risen, it is indeed partly because we still depend on imported raw materials for animal feed,’ Kusnan said on Tuesday (19 May 2026), quoted from the Obrolan News Room YouTube channel of Kompas.com.

He explained that one of the main imported raw materials is SBM or soybean meal (bungkil kedelai), used as a feed component.

‘The rise in maize prices could be triggered by the rupiah weakening. When the rupiah weakens, fuel prices go up, transport costs rise, and consequently the price of maize for animal feed also increases,’ he said.

Kusnan disclosed that the price of imported SBM is currently almost Rp 8,500 per kilogram.

SBM and maize are the main components in feed for laying hens and broilers.

‘These two components are the main ingredients used for poultry feed. Naturally, everything goes up,’ he said.

He noted that the impact of international geopolitical tensions can be felt directly down to rural communities.

‘Because we still rely on imported raw materials for animal feed, our economy becomes highly dependent on global conditions. When geopolitics in the Middle East heats up, the impact is felt all the way to the village level,’ he said.

He stated that national food security is actually anchored in villages and supported by small communities.

‘Food security exists in villages, in the people. If the people are no longer able to buy, our economy also needs to be feared,’ Kusnan said.