The Indonesian government has partnered with Vietnamese investors to develop a large-scale dairy industry in Poso, Central Sulawesi, aimed at supporting President Prabowo Subianto’s initiative for a free nutritional meal program targeting approximately 82 million school children, including milk as a vital part of the menu.
Moch. Arief Cahyono, Head of the Public Relations and Information Bureau at the Ministry of Agriculture, stated that the dairy project, spanning 10,000 hectares, is expected to boost national milk production by an estimated 1.8 million tons within three to five years.
This increase would fulfill nearly half of the country’s milk demand, which currently relies heavily on imports, totaling 3.7 million tons annually.
“This partnership is focused on enhancing domestic production capacity to achieve food independence,” Arief emphasized on Sunday, October 27, 2024.
This move by the Ministry of Agriculture aligns with President Prabowo’s mandate to reduce dependency on imports and bolster local industry.
Arief also highlighted the program’s potential benefits beyond self-sufficiency, including job creation, reduced unemployment, and improved welfare for rural communities around Poso.
In addition to dairy, the government is engaging 46 companies, both domestic and international, to supply 1.3 million cattle to further meet national demand for both milk and beef.
Deputy Minister of Agriculture Sudaryono confirmed that agreements have been secured with these companies to support this goal.
Indonesia has long faced a shortage of domestically produced milk, as reported by the Ministry of Industry earlier this year.
According to Director General of Agro-Industry, Putu Juli Ardika, fresh milk from local dairy farms only accounted for 20 percent of total raw material needs in 2023, despite milk processing plants operating at a capacity of 4.64 million tons.
Domestic fresh milk production has grown by only 1 percent on average over the past six years, lagging behind the 5.3 percent growth rate of the dairy processing industry.
This new collaboration with Vietnamese investors seeks to change that, contributing significantly to Indonesia’s goal of dairy self-sufficiency and reducing the country’s reliance on imported milk.
