Indonesia to restrict milk imports to boost local production

INDONESIA – The Indonesian government has announced that it will impose restrictions on milk imports to support national fresh milk production.

Deputy Agriculture Minister Sudaryono reported that 80% of the country’s milk consumption comes from imports, while local dairy production accounts for only 20% of the demand.

He explained that as a result, the majority of Indonesians still rely on imported milk.

President Prabowo Subianto has instructed the national dairy industry to increase production and reduce dependence on imports.

“President Prabowo’s instruction is to increase the domestic milk industry and reduce imports,” Deputy Minister Sudaryono said after a meeting with the President at the Presidential Palace Complex in Jakarta on Monday, February 24, 2025, as quoted by rri.co.id.

The government’s plan does not intend to limit public milk consumption but aims to reverse the current import-to-local production ratio.

Deputy Minister Sudaryono emphasized that the country must work towards increasing domestic milk supply to meet national demand.

According to him, one of the primary challenges facing the sector is the low number of breeding cows, which has slowed milk production growth.

“So the people’s growth is faster than the cows’ growth,” he said.

To address this issue, the government plans to open investment opportunities in cattle breeding.

The target is to bring in two million breeding cows to strengthen domestic dairy farming.

Deputy Minister Sudaryono revealed that 167 companies have already committed to investing in cattle farming.

He explained that the initiative will not require state funding, as private investors will supply and manage the cows.

The government has also mandated that the milk processing industry prioritize local milk over imported alternatives.

Companies found using imported milk may face the revocation of their import licenses, reinforcing the push for a stronger local dairy industry.

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