Jakarta (VNA) – Indonesia’s Ministry of Industry is implementing a digitalisation programme at milk collection centres and promoting linkages among processing enterprises, farmers, and cooperatives to improve the quality and quantity of domestic fresh milk.
In addition, the government is carrying out a programme to subsidise up to 35% of investment costs for new machinery and equipment for dairy processing enterprises, cooperatives, and farmer groups participating in the supply chain.
These efforts aim to reduce dependence on imported milk, increase domestic production, and work towards long-term self-sufficiency in milk supply.
Industry Minister Agus Gumiwang Kartasasmita said on June 15 that the dairy processing industry is a strategic sector for the country, involving millions of small-scale dairy farmers. However, the industry remains heavily reliant on imported raw materials, with domestic fresh milk production meeting only about 20% of processors' demand.
According to the Ministry of Industry, milk consumption in Southeast Asia's most populous country remains low, at about 17.7 litres per person per year, significantly lower than in many other countries in the region. This indicates considerable potential for further growth in the dairy industry in the coming years.
The government believes that nutrition programmes, particularly the free meal programme for students and pregnant women, will help boost domestic milk consumption, thereby creating momentum for the development of the entire dairy industry value chain. However, small-scale farming, low cattle productivity, weak linkages between raw milk production and processing, and limitations in cold storage and logistics remain major challenges facing the Indonesian dairy industry./.
