Indonesia Allocates 1.5 Million Hectares for Dairy Farming and Cattle Imports

Sep 2024

The Agriculture Ministry is setting aside 1.5 million hectares of land for dairy farming to support the President-elect’s Free Meal Program, which seeks to provide lunch and milk to students nationwide. This land allocation will facilitate the import of 1.5 million dairy cows, ensuring sufficient milk production to meet the program’s goals and improve nutrition for students across Indonesia. The initiative is part of a broader effort to enhance food security and bolster the domestic dairy industry.

An Expert Staff to the Agriculture Minister explained that the allocation of this vast area is essential to produce enough feed for the dairy cows and address existing pasture shortages. The Ministry currently identifies potential locations and works with investors to ensure the program’s successful implementation.

The identified areas for land preparation include the highlands of Palu, Berastagi in North Sumatra, and regions near Muara Enim in Palembang, South Sumatra. Additionally, the Ministry collaborates with palm oil farmers in Palembang to integrate dairy farming into plantation operations.

To achieve milk self-sufficiency, the government is considering importing dairy cows from New Zealand, Australia, the United States, and Brazil. The Agriculture Ministry also actively engages with private investors and international partners to support the initiative. Recent negotiations include a Middle Eastern investor expressing interest in securing 20,000 hectares of land and interest from Chinese and Vietnamese investors looking for at least 5,000 hectares.

Local dairy farmers will be actively involved in the initiative, with the development of financing models designed to support their participation. These models will include options such as facilitated credit and insurance to help mitigate financial risks and encourage engagement.

(Source: Jakarta Globe)

About Us

Orissa International helps companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 companies that includes distributors, resellers, system integrators and local manufacturers, that we have built through advising and guiding more than 5,000 companies with their market expansion into the ASEAN region over the last 25 years.

Orissa International is headquartered in Singapore, with additional offices in Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

Our Services