Indonesia Aims to Revive Dairy Industry Through Stronger Partnerships
Source: DairyNews.today
The Indonesian government is strengthening collaboration between the dairy industry and local farmers to boost production, improve quality, and enhance the sustainability of the national dairy sector, according to Agung Suganda, Director General of Livestock and Animal Health at the Ministry of Agriculture.
Speaking in Jakarta on Sunday, Suganda called on milk processing industries (IPS) to actively engage with cooperatives and local farmers, emphasizing their role in increasing the country’s dairy cow population.
“We encourage IPS to support the growth of the national dairy cow population,” Suganda said. “The government is not imposing mandates but asking the industry to prioritize the welfare of the people.”
Policy Support and Strategic Projects
To ensure progress, the Ministry of Agriculture is drafting a Presidential Regulation on Accelerating National Milk Production. The regulation aims to secure the absorption of fresh milk from farmers while reducing reliance on imported raw materials, which currently account for 80% of national milk consumption.
The government has also proposed designating 30 areas as National Strategic Projects (PSN), which would lower land rental costs and provide infrastructure and logistical support. These projects are integrated into the National Medium-Term Development Plan (RPJMN) for 2025-2029 to fortify the domestic dairy ecosystem.
Recovering from Foot-and-Mouth Disease
Suganda noted that the national dairy industry is still recovering from the impact of the 2022 Foot-and-Mouth Disease (FMD) outbreak, which reduced the dairy cow population by over 10% and cut productivity by 30-40%.
“The FMD outbreak had a devastating impact on our dairy industry,” he said, underscoring the urgency of rebuilding capacity to meet domestic demand.
Boosting Milk Consumption and Self-Sufficiency
Currently, per capita milk consumption in Indonesia stands at 16 liters annually—significantly lower than Vietnam’s 26 liters. To address this, the government is advocating for milk to be included in the Free Nutritious Meals program launched by President Joko Widodo, aiming to improve public awareness of milk’s nutritional benefits and address child malnutrition.
Looking ahead, the government is targeting a 1-million-head increase in the national dairy cow population by 2029. For 2025 alone, the target is to import 200,000 cows, with commitments already secured for 185,000.
“This leaves just 15,000 cows to meet next year’s target,” Suganda added, expressing optimism about achieving this milestone with continued industry collaboration and investment.
“We encourage IPS to support the growth of the national dairy cow population,” Suganda said. “The government is not imposing mandates but asking the industry to prioritize the welfare of the people.”
Policy Support and Strategic Projects
To ensure progress, the Ministry of Agriculture is drafting a Presidential Regulation on Accelerating National Milk Production. The regulation aims to secure the absorption of fresh milk from farmers while reducing reliance on imported raw materials, which currently account for 80% of national milk consumption.
The government has also proposed designating 30 areas as National Strategic Projects (PSN), which would lower land rental costs and provide infrastructure and logistical support. These projects are integrated into the National Medium-Term Development Plan (RPJMN) for 2025-2029 to fortify the domestic dairy ecosystem.
Recovering from Foot-and-Mouth Disease
Suganda noted that the national dairy industry is still recovering from the impact of the 2022 Foot-and-Mouth Disease (FMD) outbreak, which reduced the dairy cow population by over 10% and cut productivity by 30-40%.
“The FMD outbreak had a devastating impact on our dairy industry,” he said, underscoring the urgency of rebuilding capacity to meet domestic demand.
Boosting Milk Consumption and Self-Sufficiency
Currently, per capita milk consumption in Indonesia stands at 16 liters annually—significantly lower than Vietnam’s 26 liters. To address this, the government is advocating for milk to be included in the Free Nutritious Meals program launched by President Joko Widodo, aiming to improve public awareness of milk’s nutritional benefits and address child malnutrition.
Looking ahead, the government is targeting a 1-million-head increase in the national dairy cow population by 2029. For 2025 alone, the target is to import 200,000 cows, with commitments already secured for 185,000.
“This leaves just 15,000 cows to meet next year’s target,” Suganda added, expressing optimism about achieving this milestone with continued industry collaboration and investment.
