Indonesian Government Pledges Support for Dairy Co-operatives to Boost Domestic Milk Production

Minister Hasan emphasized the government's commitment to developing co-operatives like KPSBU, recognizing their potential to produce high-quality milk and compete with larger business entities. "Co-operatives genuinely deserve guidance and assistance, as I believe that they can compete even with major business entities," Hasan remarked during the visit on Thursday.

Hasan highlighted the vital role that co-operatives and MSMEs (micro, small, and medium enterprises) play in Indonesia’s economy, contributing approximately 60% to the nation's gross domestic product (GDP). He noted that these enterprises form the backbone of the country's economy, absorbing 90% of the workforce. "Co-operatives and small and medium industries have been the foundation of Indonesia's economy," he added.

The minister also praised KPSBU for adopting advanced technologies to process fresh milk, showcasing the potential for such co-operatives to integrate into the national supply chain and grow from micro-enterprises into medium-scale businesses.

Vice President-elect Gibran Rakabuming Raka echoed Hasan's sentiments, highlighting the importance of domestic milk production in the upcoming Free Nutritious Meals Program. The program, which targets pregnant and breastfeeding women, toddlers, and schoolchildren, will prioritize the use of locally produced milk. "If possible, we will not resort to imports since I believe that domestic milk production has been running well," Gibran stated.

The visit underscores the incoming Prabowo-Gibran administration's focus on supporting co-operatives and small industries, reinforcing their pivotal role in Indonesia's economic growth and sustainability.

Photo: Trade Minister Zulkifli Hasan (in white shirt) and Vice President-elect Gibran Rakabuming Raka (in pink shirt) review the Bandung Utara Cattle Rancher Co-operative (KPSBU) in West Bandung District, West Java by ANTARA