July 3, 2019


Indonesian watchdog to investigate further into chicken price drop

Indonesia's chicken prices at the farming level, which have allegedly dropped below production cost, has prompted the country's Business Competition Supervisory Commission (KPPU) to extend its investigation into the matter, The Jakarta Post reported.

"There were a number of considerations, particularly the difference in price between live chicken and its meat," said KPPU commissioner Guntur Syahputra Saragih on July 1. The price drop has caused protests in East Java, Central Java and Yogyakarta, with farmers in some parts of the country giving away live chickens in response.


"The price of chicken at the farming level went from IDR8,000 (US$0.57) to IDR10,000 (US$0.71) per kilogram," he said, adding that while the price of chicken in markets went from IDR30,000 (US$2.12) to IDR40,000 (US$2.83), there were irregularities in the supply chain. Saragih suspected middlemen had gained a high profit margin from the commodity.

Previously, the Agriculture Ministry's livestock and animal health director general, I Ketut Diarmita, also suspected middlemen were involved in the price drop.

The ministry will identify middlemen and distributors of chicken in order to prevent regulation violations that could exacerbate losses for chicken farmers, said Diarmita.

- The Jakarta Post