Indonesia’s commercial poultry sector remains one of the most important food production industries in Southeast Asia. In 2026, cage-based layer farming continues to form the foundation of commercial egg production, especially for medium and large-scale farms supplying retail and food service channels.
While global discussions around cage-free systems are increasing, the reality on the ground is more practical. The industry shift in Indonesia is not a move away from cages, but a gradual upgrade from manual systems to more efficient and automated cage-based operations.
For farm operators planning investments in 2025–2026, understanding this distinction is critical. Equipment decisions today are increasingly focused on automation, biosecurity, and long-term operational efficiency rather than changes in production model.
Indonesia’s Scale as an Egg Producer
Indonesia is one of the largest egg-producing countries in the world. According to FAO-based estimates cited by aviNews Asia, Indonesia ranks among the top three to four global egg producers, alongside China and India.
Global production data from WATTPoultry estimates Indonesia’s egg production at approximately 6.5 million metric tonnes annually, placing it close to the United States in total output.
Domestic demand continues to grow steadily. The same aviNews Asia industry outlook projects egg consumption growth of 5% to 8% in 2025 and 7% to 10% in 2026, driven by population growth, food security programmes, and rising consumption in urban areas.
This scale makes Indonesia a key market for poultry automation systems, particularly for solutions that improve efficiency and production consistency.
Cage Systems Still Dominate Commercial Egg Production
Despite increasing attention on cage-free farming, commercial poultry production in Indonesia remains heavily dependent on cage systems.
A multi-country study referenced by The Conversation found that over 90% of laying hens in Indonesia are still raised in cage-based systems, particularly in commercial operations.
This dominance is not accidental. Cage systems continue to be widely used because they offer:
- stable production control at scale
- efficient use of housing space
- reduced disease exposure through improved biosecurity
- predictable egg output for commercial supply chains
- better control of feeding and environmental conditions
For large-scale farms, these factors directly influence profitability and operational stability.
The Real Shift: Modernisation of Cage-Based Systems
The most important transformation in Indonesia’s poultry industry is not a shift away from cages, but an upgrade within cage-based systems.
Across 2025 to 2026, farm investment is increasingly focused on automation and system efficiency rather than production model change.
Key developments include:
- automatic layer cage systems with integrated feeding and egg handling
- manure belt systems for improved hygiene management
- egg collection conveyor systems that reduce manual handling
- automatic feeding systems for consistent feed distribution
- environmental control systems designed for tropical farm conditions
Industry analysis from aviNews Asia highlights that feed costs account for 65% to 75% of total production costs in commercial poultry farming. This is one of the strongest drivers behind automation adoption, particularly in feeding and waste management systems.
As a result, most capital investment in Indonesia’s poultry sector is now directed toward improving efficiency within existing cage-based infrastructure rather than replacing it.
Animal Welfare Pressure and Market Development
The cage-free discussion is increasingly relevant in Indonesia, but its impact is still concentrated in early-stage adoption and premium supply chains.
In 2025, Indonesia introduced new animal welfare direction through Minister of Agriculture Regulation No. 32 of 2025. According to WATTPoultry reporting, this policy supports the development of structured animal welfare frameworks, including guidelines for future cage-free systems.
Consumer and commercial demand is also evolving. A 2025 survey reported by Feed & Additive Magazine found that 72% of respondents believe food service and retail businesses should adopt cage-free eggs, with many willing to pay a premium.
However, adoption remains limited. The same multi-country poultry study highlights that cost, disease control, and system complexity remain major barriers to large-scale cage-free production.
As of 2026, cage-free farming remains a niche segment focused on pilot farms and specific supply chains, while cage systems continue to dominate mainstream production.
Why Modern Cage Systems Matter More Than Traditional Battery Cages
It is important to distinguish between older battery cage systems and modern automated cage systems.
Traditional cage systems often suffer from limited manure management, higher ammonia levels, and more manual labour dependency. These are the systems most commonly criticised in welfare discussions.
Modern systems, such as the Manure Belt Battery (MBB) cage system supplied by Tong Seh Industries, are designed to address these issues through:
- frequent manure removal via belt systems
- improved ventilation and hygiene conditions
- automated feeding for consistent nutrition
- optimised cage flooring for bird comfort and egg roll-out
This creates a fundamentally different operational environment compared to older manual cage setups.
For farms evaluating upgrades, the key question is not whether cages should be used, but whether modern automated cage systems can significantly improve efficiency, hygiene, and long-term production stability.
How Tong Seh Industries Supports Poultry Farms in Indonesia
Tong Seh Industries Supply Sdn Bhd (TSIS) is a Malaysian manufacturer established in 1981, supplying poultry farm automation systems across Southeast Asia, including Indonesia and the Philippines.
TSIS provides complete poultry solutions designed for commercial farms, including:
- MBB cage systems for fully automated layer farming
- A-Frame cage systems for smaller or transitional farms
- NAF cage systems for flexible house configurations
- egg collection conveyor systems
- automatic feeding systems
- environmental control systems
All systems are designed for tropical poultry farming conditions, including high humidity and continuous operation environments common in Indonesia.
Choosing the Right Cage System
Each system serves a different farm requirement:
The MBB system is suitable for large-scale commercial farms requiring fully integrated automation.
The A-Frame system is more suitable for smaller farms or operations transitioning from manual systems.
The NAF system provides flexibility for farms requiring different housing structures or manure management approaches.
A detailed comparison is available here: MBB vs A-Frame vs NAF Cage Systems
For a full overview of TSIS poultry equipment for Indonesia, visit:
Poultry Equipment Supplier for Commercial Farms in Indonesia
Conclusion
As of 2026, cage systems remain the dominant production model in Indonesia’s commercial poultry industry.
The key transformation is not structural replacement, but system modernisation through automation, improved biosecurity, and better operational efficiency.
With feed cost pressure, labour optimisation needs, and disease management challenges shaping farm decisions, automated cage-based systems continue to represent the most practical and widely adopted solution for commercial poultry farms in Indonesia and the broader Southeast Asian region.
Frequently Asked Questions (FAQs)
Is Indonesia’s poultry industry moving away from cage systems?
No. The main industry shift is not away from cages, but toward modernisation of cage systems. Farms are upgrading from manual setups to automated systems with better hygiene, feeding control, and environmental management.
Why are cage systems still widely used in Indonesia’s commercial egg production?
Cage systems are widely used because they allow efficient space usage, stable egg production, better feed control, and improved biosecurity in high-density tropical farming conditions. These factors are important for large-scale commercial operations.
Is cage-free egg production becoming common in Indonesia?
Cage-free production exists but remains a small segment. It is mostly limited to specific supply chains, premium buyers, and pilot farms. The majority of commercial egg production still relies on cage-based systems.
What are the main challenges for poultry farms in Indonesia today?
Key challenges include feed cost pressure, labour dependency, disease control in tropical environments, and the need for more efficient production systems. These factors are driving investment into automation rather than system replacement.
Does modern cage technology improve animal welfare compared to traditional cages?
Modern cage systems are designed to improve hygiene, airflow, and waste management compared to older manual cages. Features such as manure removal systems and improved cage design help reduce ammonia levels and improve living conditions.
What should farms consider when choosing a cage system in Indonesia?
Farms typically evaluate scale, house design, labour availability, and automation level. The decision is usually based on improving efficiency and long-term operational stability rather than changing production models.
Planning a Poultry Farm Upgrade in Indonesia?
Understanding industry trends is only the first step. Whether you are expanding an existing layer farm or evaluating automation opportunities, choosing the right equipment can have a significant impact on productivity, labour efficiency, and long-term operating costs.
Tong Seh Industries Supply Sdn Bhd (TSIS) supplies commercial poultry farm equipment for farms across Southeast Asia, including Indonesia. Our solutions include layer cage systems, automatic feeding systems, egg collection systems, and environmental control equipment designed for tropical farming conditions.
Talk to our team to discuss your farm requirements and explore suitable poultry automation solutions.
Disclaimer:
The information provided in this article is for general informational purposes only. Readers are encouraged to consult with a qualified professional or contact Tong Seh for advice and solutions tailored to their specific needs. While we strive to provide accurate and up-to-date information, we cannot guarantee that it is entirely error-free. Tong Seh Industries Supply Sdn Bhd (TSIS) assumes no responsibility for any errors or omissions.
