In 2019, animal feed production is predicted to increase by 6%-8% to 20.3 million tons, from 19.

4 million tons
in 2018. According to the Association of Livestock Food Enterprises or Gabungan Pengusaha Makanan
Ternak (GPMT), the increase is influenced by the increasing consumption of animal protein, particularly
poultry, in line with the 5.2% predicted economic growth of Indonesia every year.

In term of poultry feed, the Association will continue to adjust the use of a portion of corn for feed composition,
by using least-cost formulation. The use of corn will be limited, only about 35%-40%. Meanwhile, the
remaining compositions are a fortification, imported soybean meal and other alternative materials like wheat,
sorghum, and cassava.

Meanwhile, consumption of local chicken meat is still low, or only 0.9 kilograms (kg) per capita in a year. For
that early 2018, the Local Poultry Farmers Association of Indonesia (Himpunan Peternak Unggas Lokal
Indonesia or HIMPULI) is ready to export 30,000-days old chicks (DOC) and 10,000-days old duck (DOD) to
Malaysia per month. And it is expected that the number continues to increase.

Meanwhile, Bank Indonesia predicts that the Indonesian economy will grow by 5.1% in the third quarter of
2019. Like the previous quarters, household consumption is still the main supporting factor of economic
growth.

Based on the data from Statistics Indonesia, it is mentioned that the economic growth in the second quarter
of 2019, only grew at the level of 5.05%, lower than the realization of economic growth in the first quarter of
2019 of 5.07% (YoY). Furthermore, the World Bank predicts that Indonesia's economic growth will drop below
5 percent in 2020, which is only 4.9%.

Along with the increasing demand for livestock products and the increase in livestock production in
Indonesia, the animal feed and supporting industries are potential to increase their production in the
future. On the other hand, the slowing down of the Indonesian economy this year to 2020 is a caution for all
industry players.

Kesimpulan

In term of business prospect, the animal feed production is predicted to increase by 6%-8% to 20.3 million
tons in 2019. This indicates that the animal feed industry is still prospective and can be optimized.