Deputy Chairman of Commission IV of the Indonesian House of Representatives: Large Markets are Needed to Encourage Protein Sector Investment

JAKARTA - Deputy Chairman of Commission IV of the Indonesian House of Representatives, Panggah Susanto, assessed that the development of the national protein industry should be directed at opening wider markets in order to be able to attract investment, increase productivity, and strengthen the competitiveness of Indonesia's livestock sector.

According to Panggah, investment is an important factor in encouraging the modernization of the protein industry. The entry of new capital will accelerate the adoption of technology, increase production efficiency, and strengthen the industry's capacity to meet the increasing protein needs of the community.

In addition to bringing investment, the development of the protein industry also opens up opportunities for increasing human resource capacity and the implementation of best practices needed to modernize the Indonesian livestock sector.

On the other hand, investment will encourage an increase in the quality standards and competitiveness of national protein products so that they can reach a wider market.

"The success of the chicken industry transformation proves that technology-backed investments are able to create a more efficient business ecosystem without eliminating the role of farmers," said Panggah in Jakarta, Tuesday, August 4, 2026.

Through the pattern of partnership, large companies can become the driving force of the industry. Meanwhile, farmers get access to superior seeds, technology, financing, and market certainty.

"This needs to be studied, this industry is 'driven' only by two large companies with capital-intensive investments and technology," he said.

Panggah assessed that the chicken industry is a model for the development of the protein sector that can serve as a reference for other subsectors. With adjustments to the characteristics of each commodity and region, a similar approach can be applied to the development of cattle, goats, fisheries, and other protein sources so that they can build a more integrated and competitive industrial ecosystem.

In this context, strategic partnerships with global protein companies that have experience, technology, and international market networks are considered to be one of the efforts to accelerate the development of the national protein ecosystem.

This partnership is expected to accelerate the development of an integrated national protein ecosystem from upstream to downstream, while strengthening food security, increasing supply chain efficiency, and encouraging Indonesia's competitiveness in regional and global markets.

In the scheme developed, Indonesia not only becomes an investment destination, but also a strategic partner through the establishment of a joint venture. Through this model, Indonesia can have an equity stake and representation on the board of directors (board seat), so that it has a role in strategic decision-making while ensuring greater economic benefits for the national industry.

With this approach, continued Pangah, Indonesia has the opportunity to become a production and distribution center for protein in the region, with priority access to regional markets that include around 745 million people.

"This development can be supported through the establishment of a joint venture company that places Indonesia as the main priority in developing capacity and regional protein industry growth," he continued.

Panggah's view is in line with the study of the Prasasti Center for Policy Studies which states that Indonesia needs an integrated national protein ecosystem that is adaptive to the characteristics of each region.

This conclusion is the result of a Prasasti Focus Group Discussion (FGD) entitled "Strengthening the Distribution and Quality of National Protein", which brought together policymakers, business associations, industry players, and development partners.

More broadly, with increasing community income and awareness of nutritious food consumption, protein demand is expected to continue to grow in the next few years. This condition opens up great opportunities for new investment to enter the national protein sector.

By directing investments according to the respective advantages of each region, productivity is believed to be able to be improved more effectively.

The presence of large companies as drivers of investment not only strengthens production capacity, but also encourages the improvement of quality standards, as well as opening market access for farmers through partnership schemes.

Collaboration between the government, business world, academics, research institutions, and business actors is a prerequisite for building a resilient protein ecosystem.

The government plays a role in creating regulatory certainty and a conducive investment climate, while the private sector is the engine of innovation and industrial development. On the other hand, local farmers and business actors remain an important part of the national supply chain so that the benefits of investment can be felt more broadly.

With an integrated ecosystem and supported by sustainable investment, Indonesia is considered to have great opportunities to strengthen national protein resilience, increase the competitiveness of the livestock industry, and make the protein sector one of the drivers of national economic growth.