Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) Aceh is targeting major opportunities in the livestock industry by preparing 1,050 hectares of land in Aceh Besar. Chairman of Kadin Aceh, Muhammad Iqbal, estimated that the project would require investment worth up to US$120 million, equivalent to around Rp2 trillion.

Muhammad Iqbal stated that such a large-scale investment is essential, considering that no local entrepreneurs currently have the capacity to independently develop livestock facilities using modern “closed-house” farming technology. The investment is expected not only to meet domestic demand but also to serve export markets.

“No local entrepreneur is capable of undertaking an investment of this scale. Its value is around US$120 million, or approximately Rp2 trillion. The poultry houses will use modern closed-house technology, unlike the conventional facilities we have today,” Iqbal said in an interview with Investortrust at Menara Kadin in Jakarta on Monday (11/5/2026).

Iqbal dismissed concerns that the entry of foreign investors would undermine small-scale local farmers. On the contrary, he emphasized that large companies would act as mentors to local farmers by providing support in the form of medicines, animal feed, and technology transfer.

He explained that Aceh’s geographical advantages are a key selling point for international investors. According to Iqbal, Aceh holds a strategic position as a halal food producer for markets in the Middle East and South Asia.

One of the most promising target markets, he noted, is India’s Nicobar Islands.

“The distance from Aceh to the Nicobar Islands is only around 150 kilometers. They have enormous demand for food supplies. Transporting goods from mainland India would require traveling more than 2,000 kilometers. We already have a trade cooperation agreement between Aceh and Nicobar,” he explained optimistically.

Beyond its export potential, the investment is also expected to generate massive employment opportunities across Aceh. The corn farming sector, which will support raw materials for animal feed production, is projected to absorb at least 12,000 workers, excluding employment opportunities in other supporting industries.

Financing Challenges

Speaking to Investortrust, Iqbal also highlighted financing challenges in Indonesia, which remain a major obstacle for industry players.

He pointed to high banking interest rates exceeding 10% and the difficulty faced by SMEs in the agriculture and livestock sectors in accessing credit due to collateral requirements.

Therefore, he called on all stakeholders to maintain a conducive investment climate in Aceh. According to him, negative comments unsupported by data would only hinder regional development.

With support from all parties, Aceh is expected to emerge as a respected halal food industry hub in Asia.

“We want Aceh to become self-sufficient in food, industry, and manufacturing. Many of our essential needs still come from outside Aceh, and Kadin wants Aceh to become self-reliant,” he concluded.