Jakarta. Indonesia continues to rely heavily on imported milk, with about 80% of its dairy needs currently met by imports, compared to just 40 percent in 1997. This growing dependency on foreign supplies has raised concerns among government officials and local dairy farmers, with Deputy Minister of Agriculture Sudaryono warning that the country could eventually become fully reliant on imported milk if trends persist.

“If this continues, eventually all of it will be imported,” Sudaryono cautioned during a special interview on the “Beritasatu Special” program on BTV, on Monday.

Local dairy farmers and milk collectors in Boyolali and Semarang, Central Java, took to the streets over the weekend to protest the lack of demand for local milk, which they claim is losing to imported products. The farmers poured milk onto the streets and bathed themselves in milk expressing frustration over their struggle to compete with cheaper imports.

In response, the Agriculture Ministry has enacted a policy requiring dairy processing companies to purchase milk from local farmers. The ministry has also suspended import permits for five companies that were found to be rejecting locally produced milk.

“We have brought together stakeholders, including industry players, milk collectors, and farmers, and a decree has been signed mandating that the dairy processing industry must accept milk from local farmers,” Sudaryono said.

“As long as farmers produce milk, it is mandatory for the industry to absorb it. They cannot refuse in the name of efficiency or quality. Both sides must adhere to this rule,” he added.

This policy also supports President Prabowo Subianto’s free nutritious meal program for 80 million schoolchildren over the next five years, which aims to absorb more milk from domestic farmers.

The government hopes this policy will strengthen local milk production, reduce reliance on imports, and foster cooperation among industries, farmers, and milk collectors.

Data from Indonesia’s Central Statistics Agency (BPS) for 2023 reveals that domestic fresh milk production totaled 837,223 tons, covering only 19 percent of the national demand, which stands at 4.4 million tons. The remaining 81 percent was sourced through imports.

According to BPS Deputy Pudji Ismartini, milk imports in August 2024 reached $94.49 million—a 21.19 percent increase from $77.97 million in July 2024 and an annual increase of 21.12 percent.