Investments in Indonesia’s poultry sector

Investments in Indonesia’s poultry sector

Japfa comfeed, Charoen Pokphand and Jaya Bersama Indo are investing in the Indonesian poultry sector.


Japfa Comfeed Indonesia plans to allocate US$ 180 MN for capital expenditure. According to Bambang Budi Hendarto, Vice President Director, around US$ 72 MN will be used to invest in modernizing its poultry houses, converting (semi)open houses to closed house systems. Other investments include expansion of the production capacity of its feed mill in Medan, North Sumatra, corn dryers and silos, slaughterhouses and (further)processing facilities and to expand its poultry vaccine production capacity. Headquartered in Singapore, Japfa employs over 34,000 people across an integrated network of modern farming, processing and distribution facilities in Indonesia, China, Vietnam, India and Myanmar.

Charoen Pokphand (CP) Indonesia has set aside US$ 187 MN for expansion this year. Tjiu Thomas Effendy, President Director said 40% of the fund will be for its feed business. “We plan to set up a feed mill in Central Java and another in Sumatra. This business still has growth potential considering the country’s relatively low chicken consumption (12.8 kg/capita),” he revealed. The company will allocate 35% of the fund for its farming business and 15% for its food & beverage business and the remainder 10% for routine CAPEX. With the expansion plans plus efficiency measures, CP Indonesia is optimistic of a 12% increase in revenue this year from 2017’s US$ 3.34 BN. Meanwhile, net profit is expected to increase 20% in 2018 from last year’s US$ 180 MN.

CP Indonesia is also constructing a new chicken slaughterhouse in Tabanan, Bali which is expected to start operation by end this year. The company’s seventh slaughterhouse in the country will have a slaughtering capacity of 2,000 birds/hour. The market for broilers in Bali is growing in line with the tourism industry in the island. Official data mentioned that daily broiler production in Bali is 200,000 birds/day. The new slaughterhouse will offer halal, hygienic and quality chicken meat to locals and the tourism industry. CP Indonesia is Indonesia’s largest producer of poultry feed, day old chicks and processed chickens. Its core business is the agro-business, specifically the manufacturing of poultry feed. The company has a dominating market share of about 35% in both the country’s day old chicks (DOC) business and the poultry feed industry.

Jaya Bersama Indo, the operator of The Duck King restaurant chain that specialises in duck meat menus, is planning an initial public offering (IPO) in early June. According to Limpa Itsin Bachtiar, President Director, the company will offer 403.8 MN shares (34.4%) at around US$ 0.11-0.14 per share. Of the funds gained, 80% will be used for expansion while the remainder will be for working capital, said Dewi Tio, Finance Director. Jaya Bersama Indo plans to open 48 outlets in the next three years. This year, it will open 11 outlets, then 18 in 2019 and 19 in 2020. “For the expansion, we need around US$ 48 MN,” said Ms Tio. The company also plans to expand its business in Vietnam this year with a Duck King outlet in Ho Chi Minh City. The company is also setting sights on Myanmar and Cambodia.


FoodTechIndonesia (FTI) is a public-private initiative combining the strengths of Dutch companies (mainly SMEs) active in the poultry value chain to improve and strengthen the poultry sector in Indonesia, in close cooperation with their Indonesian counterparts.

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