Indonesia’s Ministry of Industry (Kemenperin) is strengthening the national dairy processing industry ecosystem through digitalization and restructuring programs to support food security, improve public nutrition, and strengthen domestic industrial independence.

The initiative was highlighted during the 2026 National Milk Day (Hari Susu Nusantara/HSN) celebration at Gelora Bung Karno (GBK), Jakarta, on Sunday (14/6).

Industry Minister Agus Gumiwang Kartasasmita stated that the dairy processing industry is one of the strategic manufacturing sectors with a high multiplier effect because it is directly connected with smallholder livestock farming.

However, the availability of domestic raw materials remains a major challenge for the industry.

“Currently, domestic fresh milk production only fulfills around 20 percent of the total industry demand. Therefore, strengthening mutually beneficial partnerships between industries, farmers, and cooperatives is the main key to increasing national production capacity,” said Industry Minister Agus Gumiwang in Jakarta, Monday (15/6).

Domestic Fresh Milk Production Becomes a Key Challenge for the Industry

Acting Director General of Agro Industry Putu Juli Ardika explained that the dairy processing industry is closely connected with smallholder livestock farming.

Therefore, strengthening the national dairy industry must be carried out comprehensively, from increasing production to developing capacity.

Indonesia’s milk consumption remains relatively low at around 17.7 liters per capita per year. This condition creates opportunities for the future development of the dairy processing industry.

“With government programs oriented toward improving public nutrition quality, such as the Free Nutritious Meals Program (MBG), there is an opportunity to encourage an increase in national milk consumption,” Putu explained.

The national dairy processing industry still faces several challenges, including limited integration between upstream and downstream sectors, small-scale farmer businesses, the need to improve livestock productivity, and limited cold chain and logistics infrastructure.

Digital Technology and Restructuring Program Support Dairy Industry Growth

To strengthen the domestic dairy industry, Kemenperin continues to encourage partnerships between dairy processing industries and dairy farmers while improving the quality of domestic fresh milk production.

The ministry is also promoting the use of digital technology at Milk Collection Points (TPS) as part of efforts to support the development of the dairy industry.

In addition, the government is implementing the Machinery and/or Equipment Restructuring Program for the Food and Beverage Industry through Regulation of the Minister of Industry Number 40 of 2024.

Government Provides Support to Improve Dairy Industry Productivity

Director of Beverage, Tobacco Products, and Refreshment Industries Merrijantij Punguan Pintaria said the restructuring program provides support for industries to improve productivity and product quality.

“Through the restructuring program, the government provides facilities for partial cost replacement or reimbursement of up to 35 percent for the purchase of new machinery and equipment. This facility can be utilized by dairy processing industries as well as cooperatives and farmer groups that become industry partners to improve productivity and product quality,” said Merri.

Merri stated that the National Milk Day celebration is an important moment to strengthen collaboration between the government, farmers, cooperatives, dairy processing industries, academics, and the public.

She said strong cooperation among stakeholders is important to increase domestic milk production and strengthen the competitiveness of the national dairy processing industry.

PHOTO: MINISTRY OF INDUSTRY

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].