Indonesia Corn Market Update: Bulog Expands SPHP Program
- Massive program scale-up: Bulog plans to distribute 500,000 tonnes of corn in 2026 under the SPHP scheme, a tenfold increase from 2025’s 51,200 tonnes.
- Domestic procurement drive: Up to 1 million tonnes of corn will be purchased from local producers to strengthen Indonesia’s strategic reserves.
- Feed price stabilization: Program targets a corn price of around $0.32/kg to support poultry feed costs and help control food inflation.
- Poultry sector support: Expanded distribution via cooperatives and breeder associations aims to secure raw material supply for egg and meat producers.
- Black Sea impact limited: Indonesia’s focus on domestic supply and alternative origins keeps Black Sea corn outlook neutral to slightly bearish.
Program Scale and 2025–2026 Comparison
Indonesia’s State Logistics Agency (Bulog) will sharply expand its Stabilization of Demand and Price Program (SPHP) for corn in 2026, using the tool to stabilize feed costs, support poultry producers, and manage food inflation. The step-up marks a major policy commitment to domestic corn procurement and distribution.
| Metric | 2025 | 2026 Target |
|---|---|---|
| Distributed volume under SPHP | 51,200 tonnes | 500,000 tonnes |
| Planned distribution target | 52,400 tonnes | 500,000 tonnes |
| Distribution achievement | 98% | n/a (target) |
| Domestic procurement for reserves | Not specified | Up to 1,000,000 tonnes |
| Target corn price for feed sector | ≈ $0.32/kg | ≈ $0.32/kg (stabilization aim) |
| Beneficiaries (independent egg producers) | 2,109 producers | Expanded outreach via cooperatives & breeder groups |
Market Mechanics and Poultry Sector Impact
Under the 2026 plan, Bulog will channel 500,000 tonnes of corn through cooperatives and livestock breeder associations, a tenfold increase from the previous year’s distribution volumes. By coordinating transactions with the national police, authorities aim to enhance transparency and oversight across the distribution chain.
The 2025 SPHP corn program delivered 51,200 tonnes at a fixed price of roughly $0.32/kg to 2,109 independent egg producers, nearly hitting the planned 52,400-tonne target. This fixed-price mechanism is designed to shield poultry producers from volatile feed costs, helping them manage margins and maintain more stable prices for eggs and poultry meat.
In 2026, Bulog’s plan to procure up to 1 million tonnes of corn from domestic farmers aims to build strategic reserves while creating a more predictable, stable demand base for local producers. This dual objective—supporting upstream farmers and downstream poultry producers—reflects the government’s broader strategy to curb food inflation by stabilizing a key feed input.
International Corn Trade and Black Sea Market Implications
From a global trade perspective, Indonesia’s aggressive domestic procurement posture is neutral to slightly bearish for Black Sea corn exporters. Higher reliance on local supply reduces the country’s need for imports at the margin, at least during the early and mid-stages of 2026.
Historically, Indonesia has sourced a meaningful share of its corn needs from South American and regional origins, limiting direct exposure to Black Sea flows. While diverting up to 1 million tonnes into domestic reserves may temporarily tighten availability in Southeast Asia, it is unlikely to materially alter Black Sea export programs unless domestic production or logistics underperform and Indonesia is forced back into the international market later in the year.
Traders should monitor the pace of Bulog’s domestic purchases, actual reserve build-up, and any late-2026 import tenders. Sporadic demand spikes could still emerge if local supply disappoints or if policy shifts reopen the door to larger import volumes.
Source: Market Data
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