The Indonesian Ministry of Agriculture is taking significant steps to revitalize the country's dairy farming sector, encouraging stronger partnerships between industrial players and local breeders. These efforts aim to boost milk production, improve quality, and ensure the long-term sustainability of dairy businesses. As the country faces rising dependence on imported milk, the government's new initiatives are designed to increase domestic production and reduce this reliance.

The Director General of Animal Husbandry and Animal Health, Agung Suganda, emphasized the importance of dairy processing industries (IPS) collaborating with local cooperatives and farmers. This partnership is seen as essential for increasing the national dairy cattle population. The government is also drafting a Presidential Regulation (Perpres) aimed at accelerating national milk production. This regulation is expected to help absorb fresh milk from farmers and reduce the need for importing raw milk materials​

.Agung Suganda further outlined that the government is not mandating these collaborations but is urging industries to consider the livelihoods of local farmers. The planned regulations will establish a framework that supports the growth of Indonesia's dairy industry, including strategic locations for National Strategic Projects (PSN). These areas will benefit from lower land rental costs and enhanced infrastructure support​.

This initiative is critical given the aftermath of the 2022 Foot-and-Mouth Disease (PMK) outbreak, which resulted in a significant reduction in the dairy cow population and productivity losses of up to 40%. The sector's recovery will also hinge on boosting milk consumption, which, at 16 liters per capita per year, is far below neighboring countries like Vietnam, where consumption has reached 26 liters​.

In addition to increasing the dairy cattle population by 1 million by 2029, the government has already secured commitments from investors to bring in 185,000 dairy cows by 2025. This target highlights the government's dedication to improving the sector and reducing the reliance on imports. Public-private collaborations, like the Milk Collection Center (MCC) facility developed through PT Frisian Flag Indonesia and SAE Pujon Cooperative, are setting positive examples for the industry. These partnerships not only ensure better quality milk from farmers but also demonstrate the potential for similar collaborations in other regions.

Through these strategic partnerships and governmental support, the Ministry of Agriculture is confident that the Indonesian dairy industry can recover and thrive. The goal is not only to strengthen the industry but also to provide better nutrition for the people of Indonesia, particularly through the inclusion of milk in the Free Nutrition Food (MBG) program. These efforts align with the country's broader objective of reducing dependency on milk imports and fostering a more self-sufficient dairy sector​.