Agriculture Minister Andi Amran Sulaiman has committed to accelerating Indonesia’s milk self-sufficiency program by streamlining licensing procedures for modern dairy farm investors. The government intends to lower the nation’s reliance on imports, which currently account for approximately 80 percent of domestic demand, by facilitating faster project implementation for both domestic and foreign investors.
Investment Incentives and Licensing Expediting
To reduce administrative hurdles, the Ministry of Agriculture is offering personal assistance to investors seeking permits. According to Minister Amran, applicants can submit documents digitally via a dedicated WhatsApp information center to receive priority processing. This move is designed to ensure that large-scale dairy projects can move from planning to operation without unnecessary delays.
Did You Know? Indonesia currently relies on imports for roughly 80 percent of its total milk demand, amounting to between 3.6 million and 3.8 million tons of milk annually.
Integrated Farming as a Strategic Model
Minister Amran recently inaugurated an integrated farming project in Brebes District, Central Java, which is intended to serve as a blueprint for future industry development. The project is projected to produce 180,000 tons of fresh milk per year, representing 20 percent of the national demand. Savoria Group, the company behind the project, has outlined plans to partner with 5,000 farmers for forage supply and cooperate in the fattening of 7,000 male cattle annually.
Projected Expansion and Collaboration
The government estimates that at least 20 large-scale modern dairy farms are necessary to meet the country’s milk consumption needs.
Frequently Asked Questions
What is the primary goal of the new licensing procedures?
The goal is to accelerate the development of modern dairy farms to achieve national milk self-sufficiency and reduce the country’s 80 percent dependence on milk imports.
How many dairy farmers does Indonesia need to reach its target?
According to Minister Amran, the country needs at least 100,000 productive dairy farmers, double the current count of approximately 50,000.
What role does the Brebes integrated farming project play?
It serves as a model for future investments, with an annual production capacity of 180,000 tons of fresh milk, and includes partnerships with 5,000 local farmers for forage.
How do you think the inclusion of smallholder farmers will impact the speed of reaching national milk self-sufficiency?
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