TEMPO.CO, Jakarta - Trade Minister Zulkifli Hasan said that the chicken industry in Indonesia is dominated by three companies. As a result, small and medium enterprises or SMEs often cannot compete with these companies.

"There are so many SMEs that are getting the share of the business. Ninety-nine percent of the industry is [controlled] by two to three companies," the minister said at his office in Jakarta, Sunday, September 25, 2022.

The PAN chairman did not name the companies in question but said that the companies dominate the grandparent stock [breeding] technology, which allows one hen to produce 65 chicks.

Of the 65 chicks, he said, the hens could lay thousands more. "It's very fast, they may reach 500,000 chicks which could lead to billions of chickens in a short time," he said.

Zulkifli said the Trade Ministry would formulate policies to regulate the chicken trading system, cooperating with trade associations.

Not just the chicken industry, the animal feed sector is also controlled by two huge companies: PT Japfa Indonesia and PT Charoen Pokphand Indonesia. The two companies, Zulkifli said, have also opened egg stalls in the transitional market with frozen machine technology.

Zulkifli promised to redesign the chicken and feed industries so that SMEs would not keep losing to large corporations.

RIANI SANUSI PUTRI

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