Indonesia launches mega dairy farm in push for milk self-sufficiency

INDONESIA – Indonesia has launched the development of what is expected to become its largest dairy farm, as the government intensifies efforts to reduce the country’s heavy dependence on imported milk.

During the groundbreaking ceremony in Brebes, Central Java, Agriculture Minister Andi Amran Sulaiman stated that Indonesia currently imports 3.6–3.8 million metric tons of milk annually, accounting for around 80% of domestic demand.

To achieve milk self-sufficiency, the government estimates that at least 20 large-scale modern dairy farms are needed and is actively encouraging both domestic and foreign investors to participate.

The government has also pledged to streamline licensing and regulatory processes to facilitate investment in the sector.

The dairy farm, developed by Global Dairi Bersama (GDB), part of Savoria Group, represents an investment of Rp 1.2 trillion (US$67 million) and will cover 710 hectares with a capacity of up to 30,000 dairy cows.

The integrated facility will include milk processing, feed production, biogas generation, and organic fertilizer manufacturing, with an expected annual output of 180,000 tons of fresh milk—equivalent to approximately 20% of Indonesia’s current milk production.

In addition to supporting national milk self-sufficiency, the project aims to promote rural economic development through partnerships with local farmers, livestock feed production programs, dairy farmer training, and sustainable waste management initiatives.

Once operational, the facility is expected to strengthen Central Java’s position as a key dairy production hub and significantly contribute to reducing Indonesia’s reliance on imported milk.

Recently, the country marked a breakthrough in its dairy sector by launching its first-ever yoghurt exports to Vietnam, as overall dairy shipments from the country record strong growth in early 2026, according to ANTARA.

The inaugural export, valued at US$65,000, was facilitated by the Ministry of Trade of Indonesia, signalling increasing international recognition of the quality and competitiveness of Indonesian dairy products.

Officials say the move strengthens Indonesia’s presence in Asian markets and reflects rising demand for value-added agricultural goods.

The development comes amid a broader upward trend in dairy exports, which reached US$71.68 million in 2025, continuing steady growth over recent years.

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