Government promotes dairy industry in Indonesia
Ministry of Agriculture is promoting stronger partnerships between industry and farmers to revive the national dairy sector through increasing production, quality, and sustainability of dairy farming businesses.
"We encourage the milk processing industry or IPS to actively partner with cooperatives and local farmers. IPS must play a role in supporting the increase in the national dairy cow population," said the Director General of Livestock and Animal Health at the Ministry of Agriculture, Agung Suganda, in a statement in Jakarta on Sunday.
Suganda conveyed that his party is preparing regulations and all milk processing facilities are asked to commit to supporting the government in increasing the dairy cow population.
"The government is not forcing anyone, we are only requesting that industries also pay attention to the people's welfare," he said.
The government, he said, is drafting a Presidential Regulation on Accelerating National Milk Production. This regulation will be a basis to ensure the absorption of fresh milk from farmers and reducing imports of milk raw materials.
"Strategic steps are also being taken by proposing 30 locations to become National Strategic Projects (PSN)," he said.
With PSN status, land rental costs will be cheaper, coupled with infrastructure and logistics support. This is included in the National Medium-Term Development Plan (RPJMN) 2025-2029 which will strengthen the national dairy ecosystem.
He conveyed that the national dairy industry has received serious attention from the Ministry of Agriculture following the impact of Foot and Mouth Disease (FMD) in 2022.
"The FMD outbreak reduced the dairy cow population by more than 10 percent and reduced productivity by 30-40 percent. The impact is extraordinary for the national dairy industry," said Suganda.
He mentioned that currently Indonesia's milk consumption has only reached 16 liters per capita per year, far below Vietnam which has reached 26 liters per capita.
."We want milk to be included in the Free Nutritious Meals (MBG) menu initiated by the President, so that people are more educated and the nutritional needs of Indonesian children are met," he added.
To reduce dependence on milk imports which currently reaches 80 percent of national needs, the government is targeting an increase in the dairy cow population of one million in the next five years until 2029.
“In 2025, our target is to bring in 200 thousand dairy cows. Currently, there is a commitment from investors who will bring in 185 thousand cows in 2025. This means we only need 15 thousand more cows to achieve next year's target," he said.