Indonesia Dairy Market Overview

Indonesia is making significant strides in the Southeast Asian dairy market, bolstered by strategic government initiatives and international partnerships. These efforts, along with increased investments, sustain the country's growing influence in the dairy industry.

Dairy Cattle and Milk Production

Indonesia hosts approximately 600,000 dairy cattle, which contribute to a substantial milk production volume of around 950 million liters annually. This production is crucial in fulfilling both domestic needs and export demands.

Milk Processing

With advancements in milk processing capabilities, Indonesia processes about 700 million liters of milk each year. These advancements are pivotal for enhancing local consumption and impacting the global market.

Cheese, Milk Powder, and Whey Production

Although cheese production is in its nascent stages, it has reached approximately 5,000 metric tons annually, reflecting strong growth potential. Additionally, Indonesia produces about 20,000 metric tons of milk powder and 7,000 metric tons of whey each year, catering to both domestic consumption and export opportunities.

Key Dairy Enterprises

• Indolakto
• Frisian Flag Indonesia
• Greenfields Indonesia
• Cimory

Leading Dairy Farms

• PT Ultra Jaya Milk Industry Tbk
• PT Greenfields Indonesia

Exports and Imports

Indonesia has experienced a near doubling of its dairy exports, with a 98% increase in recent years. Despite this growth, the country continues to import approximately 3 billion liters of dairy products annually, primarily consisting of milk powder and various cheese types.

Significant Market Events

The Indonesian dairy sector is on a growth path supported by investments and governmental backing. Efforts to improve farmer-industry cooperation aim to enhance production quality and sustainability. However, challenges remain in achieving dairy self-sufficiency amid evolving import conditions. Noteworthy initiatives include the plan to import 200,000 dairy cattle by 2025 and 1 million by 2029 to boost milk production.

Indonesia has entered into strategic partnerships, such as PT ABC Kogen Dairy's collaboration with Morinaga Milk Industry Co., and has secured investment deals with the UAE in the energy and dairy sectors. Additionally, Brenntag is distributing Arla Foods Ingredients' extensive portfolio in Indonesia, expanding collaboration in health foods, infant nutrition, and sports nutrition.

Indonesia's significant trade agreement with New Zealand aims to simplify halal certification for dairy and red meat imports, enhancing market entry for Kiwi exporters. Moreover, the country remains a significant export market for Australian and U.S. dairy products, facilitated by favorable trade agreements and reduced tariffs.

Modified: 2025/07/27

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