May 29, 2026
 

Malindo Feedmill to build new Lampung feed plant with IDR700 – 800 billion capex as Q1 profit doubles

Indonesia's free school meals programme cited as a demand stabiliser for poultry products, supporting the expansion case.

PT Malindo Feedmill Tbk (MAIN) is allocating IDR700–800 billion (US$40–46 million) in capital expenditure this year to build a new feed mill in Lampung, targeted for completion in the third quarter of 2026, alongside additional breeding and broiler farming facilities.

Director Rudi Hartono Husin said the expansion is underpinned by a positive industry outlook, partly driven by the government's Makan Bergizi Gratis (MBG) free school meals programme. Director Rewin Hanrahan said the programme has helped stabilise supply and demand in the domestic poultry market, supporting more consistent product pricing.

Malindo posted net sales of IDR3.67 trillion (US$209 million) in Q1 2026, up 16.6% year on year from IDR3.17 trillion (US$181 million). Feed sales were the primary driver, rising 10.9% to IDR2.1 trillion (US$120 million), with broiler sales contributing IDR808.4 billion (US$46 million) and day-old chick sales IDR622.4 billion (US$36 million). Net profit doubled to IDR123.3 billion (US$7 million) from IDR62.9 billion (US$3.6 million) in the same period a year earlier, supported by a 22.8% rise in gross profit to IDR402.7 billion (US$23 million).

Rewin said rising raw material costs — particularly soybean meal — driven by rupiah depreciation against the US dollar are being monitored closely, with the company implementing operational adjustments to limit margin impact. Malindo is also converting part of its energy supply to solar power to reduce long-term operating costs.

The company said it is also beginning to explore export opportunities to complement domestic growth.

- Kontan