KPPU investigates chicken meat price surge in North Sumatra

The Indonesian Business Competition Supervisory Commission (KPPU) is investigating a sharp rise in chicken meat prices in North Sumatra. Prices in the region surged by 7.9% in just four days, rising from Rp48,550 per kilogram on August 17 to Rp52,400 by August 21, 2026. KPPU Regional Office I plans to examine the entire distribution chain—from large-scale farmers and slaughterhouses to distributors and retailers—to determine if the spike is due to rising feed costs or anti-competitive practices by speculators.

There are concerns that the national Free Nutritious Meal (MBG) program may impact distribution patterns if not managed transparently. While increased demand from the program is legal, officials fear it could be exploited to restrict supply to regular markets.

Meanwhile, Indonesia's Minister of Trade, Budi Santoso, stated that national average chicken prices remain within a reasonable range, despite regional fluctuations. He noted that while some areas see prices as high as Rp55,000 per kilogram, the national average is approximately Rp41,000 per kilogram. The Ministry aims to stabilize prices at a maximum of Rp40,000 per kilogram to balance the interests of producers, who need to cover feed costs, and consumers.