Indonesia Shifts Focus to Processed Poultry Amid Saudi Import Ban

Jakarta – Indonesia is strategically pivoting towards exporting processed poultry products to Saudi Arabia following the Saudi Food and Drug Authority’s (SFDA) recent ban on fresh poultry imports from Indonesia, along with 39 other countries. Rather than viewing the ban as a setback, Indonesian Agriculture Minister Andi Amran Sulaiman sees it as an opportunity to increase the value of its poultry exports.

Saudi Arabia Imposes Import Restrictions

The SFDA implemented a total ban on imports of fresh and frozen poultry and eggs from 40 nations as a preventative measure to safeguard public health and enhance food safety standards within the Saudi domestic market. This decision directly impacts Indonesian poultry exporters who previously supplied fresh products to the Kingdom.

A Shift Towards Value-Added Products

Minister Amran Sulaiman has emphasized that the import ban on fresh poultry does not extend to processed poultry products. He is actively encouraging Indonesian exporters to focus on producing and exporting higher-value processed items, such as nuggets and other prepared chicken products. “We will process [the poultry], the value is higher. That’s what business is about,” stated Amran according to the Jakarta Globe.

Economic Advantages of Processing

The Minister highlighted the significant economic benefits of exporting processed poultry. He illustrated the potential gains by comparing the price of live chickens to processed products. “If I export [live] chicken, the price is around Rp30,000 per kilogram. If this is a finished product, it’s double. Which do you choose? We are grateful that Saudi Arabia is banning [fresh] poultry. I send this [processed product] instead. Would you prefer Rp60,000 or Rp30,000? Rp60,000,” he explained as reported by Kompas.

Alignment with National Industrialization Goals

This strategic shift aligns with President Prabowo Subianto’s broader agenda of industrialization and increasing the value-added of Indonesian exports. By focusing on processing raw materials into finished goods, Indonesia aims to significantly boost the economic returns from its agricultural sector. Economix.id reports that this move is intended to increase the value of products by 100 percent.

Initial Export of Hajj Rice to Saudi Arabia

In a separate development on March 4, 2026, Indonesia officially exported 2,280 tons of BeFood Nusantara rice to Saudi Arabia, specifically for Indonesian Hajj pilgrims. This export, consisting of five container trucks, represents a first step towards expanding Indonesian rice exports to the Saudi market, which includes a substantial number of Umrah pilgrims and residents. The rice is a super premium variety, with a fraction level below 5% and a water content below 14%.

Key Takeaways

• Saudi Arabia has banned imports of fresh poultry and eggs from Indonesia and 39 other countries.
• Indonesia is responding by focusing on exporting processed poultry products to Saudi Arabia.
• Processed poultry offers significantly higher profit margins than exporting live chickens.
• This strategy aligns with the Indonesian government’s national industrialization goals.
• Indonesia also recently exported 2,280 tons of premium rice to Saudi Arabia for Hajj pilgrims.