Indonesia’s Ministry of Industry is strengthening the development of the national dairy industry through accelerated downstreaming, improved raw material quality, product innovation, and stronger partnerships between dairy processing companies and farmers as part of the Nusantara Milk Day 2026 momentum (03/06).

The initiative is intended to increase public milk consumption while enhancing the competitiveness of the domestic dairy industry.

Low Milk Consumption Creates Growth Opportunities for the Dairy Industry

Minister of Industry Agus Gumiwang Kartasasmita said milk is a strategic commodity that supports food security and helps improve the quality of human resources through better nutrition.

“The dairy industry has a very important role in supporting the improvement of public nutrition quality. The low level of milk consumption in Indonesia actually presents a major opportunity for the future development of the national dairy industry,” Agus said in Jakarta on Wednesday.

According to World Population Review data from 2022, milk consumption in Indonesia reached around 17.76 liters per capita annually, which remains lower than consumption levels in Malaysia, Singapore, and Vietnam.

Import Dependence Remains a Challenge for the Dairy Sector

The national dairy processing industry requires around 5 million tons of fresh milk equivalent raw materials each year.

However, approximately 80 percent of those raw material needs are still fulfilled through imports.

Acting Director General of Agro Industry Putu Juli Ardika said strengthening domestic fresh milk supplies is important to reduce dependence on imported dairy raw materials.

“Strengthening the domestic fresh milk supply chain through partnership programs is one of the key priorities. Synergy among smallholder farmers, cooperatives, and dairy processing industries must continue to be strengthened to create an integrated, productive, and sustainable dairy ecosystem,” he said.

Digitalization Program Reaches More Than 12,000 Dairy Farmers

To support the upstream sector, the Ministry of Industry has promoted improvements in fresh milk quality through cooling unit technology and digitalization at Milk Collection Centers.

By 2024, the digitalization program had been implemented at 96 Milk Collection Centers managed by nine cooperatives in West Java and East Java.

The program has involved more than 12,000 dairy farmers.

The ministry has also developed a domestic fresh milk supply monitoring application to monitor the availability of industrial raw materials through digitalized machinery and equipment assistance at cooperative and collection center levels.

The effort is expected to improve efficiency, transparency, and accountability across the national dairy supply chain.

Government Offers Equipment Restructuring Incentives

The government has introduced a Machinery and Equipment Restructuring Program for the food and beverage industry through Minister of Industry Regulation No. 40 of 2024.

The program provides reimbursement of up to 35 percent of the cost of purchasing new machinery and equipment.

The incentive is available to dairy processing industries as well as cooperatives and livestock farmer groups that partner with the industry.

Nusantara Milk Day Expected to Accelerate Industry Collaboration

Putu said rising public income, healthy lifestyle trends, and the implementation of the MBG program are expected to support increased investment and productivity in the national dairy processing industry.

Through the Nusantara Milk Day 2026 commemoration, the Ministry of Industry expects to accelerate dairy industry downstreaming, strengthen upstream sector capacity, and encourage closer collaboration between industry players and dairy farmers.

The ministry also expects the national dairy industry to become more self-reliant, competitive, and capable of meeting domestic market demand sustainably through continued policy support.

PHOTO: RRI/COORDINATING MINISTRY FOR FOOD AFFAIRS

This article was created with AI assistance.

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