THIS IS THE AGRICULTURE MINISTER’S CORN PROCUREMENT SCHEME TO REDUCE FEED COSTS — Illustration 1
Agriculture Minister Amran speaking with livestock farmer representatives in Jakarta, Friday (9/10/2026). (Photo: Special)

The Minister of Agriculture (Mentan), Andi Amran Sulaiman, is preparing a corn procurement scheme to help livestock farmers obtain feed ingredients at more affordable prices. Under this mechanism, livestock farmers can procure corn during the main harvest, when prices are relatively low, while financing is provided by Perum Bulog and stocks are stored through cooperatives. The scheme is expected to maintain a balance in prices for farmers while reducing the feed costs borne by livestock farmers.

He said this during a meeting with livestock farmer representatives in Jakarta, Friday (9/10/2026). The meeting took place amid concerns about feed costs, one of the complaints raised by livestock farmers, including during a protest at the House of Representatives yesterday (7/10/2026). One of the demands raised concerned the high price of feed for laying hens, which was seen as putting pressure on businesses and causing livestock farmers to incur losses.

At the meeting, Agriculture Minister Amran stressed the need to build an ecosystem linking the procurement of farmers’ harvests, livestock farmers’ corn requirements, financing, and storage to ensure a more reliable feed supply throughout the year. “I want there to be a system for this feed. You procure it, Bulog pays,” Amran said emphatically.

He said the government wants to ensure that farmers receive a fair price during the main harvest, while livestock farmers obtain corn at an affordable price for feed. “Livestock farmers must not suffer losses. If livestock farmers lose, the country loses too,” he said.

Therefore, the Minister of Agriculture urged that corn be procured when production is abundant and prices are relatively low. The corn purchased would then be stored through cooperatives for use when livestock farmers need supplies, including when market prices rise. “The state should buy when prices are low; don’t make things difficult when prices are high too,” he said.

Under this scheme, livestock farmers play a role in absorbing corn during the main harvest, while Bulog provides financing and cooperatives serve as storage facilities for the stock. With this mechanism, farmers’ harvests can be absorbed and livestock farmers can access feed raw materials with a more reliable supply.

Agriculture Minister Amran said that there are currently around 40 thousand tons of corn included in the supply being discussed under the scheme. The government continues procurement while taking the country’s capacity into account and making the most of the available corn.

“There are currently 40 thousand tons, but procurement is continuing. The state has limitations. For now, let’s work with the 40 thousand tons of corn available,” he said.

He asked Bulog to recalculate the budget requirements so that the procurement mechanism could operate effectively. Distribution priorities also need to take into account corn availability and livestock farmers’ needs on the ground. “This is already the best solution to help livestock farmers make a profit,” he said.

Kasmani, a representative of livestock farmers from Lampung, explained that South Lampung is one of the corn-producing centers. However, livestock farmers still face challenges in obtaining corn at prices that meet their needs.

He said that corn purchased from farmers or collectors costs around Rp 8.400/kg. In addition to price, varying moisture content is also an issue. Corn from West Nusa Tenggara (NTB), for example, is said to have a moisture content of 16-17%, while corn procured by Bulog is required to have a moisture content of 14%.

In response, Agriculture Minister Amran stressed the importance of strengthening storage and drying facilities so that corn from production centers could be procured and meet the required standards. He said the president had allocated Rp 5 trillion in funding to strengthen Bulog’s warehousing infrastructure.

“The president has allocated Rp 5 trillion for Bulog’s package of warehouses. Equip them with a dryer,” he said.

He asked that the construction and upgrading of warehouses include drying facilities (dryer), especially in regions with corn production potential such as NTB and Gorontalo. The facility is intended to maintain corn quality, reduce moisture content issues, and facilitate the absorption of the harvest. (INF)