Danantara Funds Chicken Farming Project, Poultry Entrepreneurs Warn of Potential Challenges
JAKARTA – The much-anticipated launch of Danantara’s project within the livestock sector has, so far, not significantly boosted the stock performance of poultry issuers. This contrasts sharply with the market’s enthusiastic reaction when the sovereign wealth fund (SWF) announced its waste-to-energy (WTE) project, which successfully propelled the stock prices of renewable energy sector companies.
Ekky Topan, an analyst at Infovesta Kapital Advisori, suggests that the stock market’s relatively sluggish response to Danantara’s foray into the poultry sector is, in fact, understandable. He elaborated to Bisnis on Tuesday, November 11, 2025, “Unlike the investment sentiment surrounding Danantara’s WTE sector, which is perceived to have high-margin potential and strong ESG appeal, the poultry sector is already a mature and capital-intensive industry. It typically operates on relatively thin margins and is highly sensitive to fluctuations in feed prices and public purchasing power.”
The government had previously announced on Friday, November 7, 2025, that Danantara plans to inject a substantial Rp20 trillion investment into developing an integrated chicken farm. This venture is strategically designed to supply the “free nutritious meals” (MBG) program, a government priority initiative. The program is projected to require an annual supply of 700,000 eggs and 1.1 million tons of broiler chickens to meet its extensive needs.
Despite the considerable scale of this investment, the sentiment has not yet translated into significant excitement in the stock market. On Monday, November 10, 2025, poultry issuer JPFA saw a modest increase of only 0.87%, while CPIN rose by just 1.08%. On Tuesday, November 11, 2025, JPFA closed up a mere 1.72% at Rp2,360, and CPIN gained only 0.64% to close at Rp4,700.
Nevertheless, Ekky believes that even with the slow immediate impact on poultry stock movements, Danantara’s presence will indirectly influence the fundamental performance of poultry issuers in the medium term. On one hand, he pointed out, this program holds the potential to strengthen the domestic supply chain and significantly increase the availability of both broiler chickens and eggs, essential for fulfilling the requirements of the MBG program.
However, from a risk perspective, Ekky warned that a substantial increase in production capacity could lead to an oversupply in the market. Such a scenario would inevitably depress chicken selling prices, consequently impacting the already tight margins of existing poultry issuers. In the short term, the financial impact on poultry companies remains limited, given that the Danantara project is still in its planning and infrastructure development phases.
“The contribution to sales volume and profitability for existing players will likely only become noticeable once the program begins full operation. Moreover, investors are still awaiting clear details regarding the business scheme—whether it will involve major poultry players as distribution partners or feed suppliers, or if it will be entirely managed by a new entity under Danantara,” he affirmed.
In conclusion, Ekky anticipates that Danantara’s investment in the poultry sector will be fundamentally positive for poultry issuers in the long run. However, the market currently views it as a gradual catalyst rather than a sentiment capable of immediately driving stock prices higher in the near future.
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