US and Indonesia Sign Dairy Agreement to Enhance Trade and Industry Cooperation

Jun 2025

In May, the U.S. Dairy Export Council (USDEC), the National Milk Producers Federation (NMPF), and KADIN, the Indonesian Chamber of Commerce, signed a memorandum of understanding (MOU) to strengthen collaboration between the U.S. and Indonesian dairy industries.

The MOU establishes a framework for collaboration aimed at expanding the dairy trade, strengthening commercial partnerships, and improving public nutrition by promoting increased dairy consumption, particularly within public programs. Key areas of cooperation include integrating dairy into Indonesia’s Free Nutritious Meals initiative, streamlining regulatory procedures such as facility registration, sharing market data, exchanging best practices and technical expertise in dairy production, and coordinating public communication campaigns to raise awareness of dairy’s nutritional benefits. The agreement also highlights support for school milk programs to enhance child health and educational outcomes.

Focusing on mutual collaboration and support for U.S. dairy exports to Indonesia, the agreement complements ongoing trade negotiations aimed at promoting more balanced trade between the two countries.

The MOU strengthens the growing partnership between the U.S. and Indonesian dairy sectors, a relationship that began with Harden’s participation as the featured industry guest during a 2023 trade mission to Indonesia led by the National Association of State Departments of Agriculture. In 2024, Indonesia ranked as the seventh-largest export market for U.S. dairy products, with purchases totaling USD 245 million. With the recent launch of a national school meals program by President Prabowo, which includes school milk, Indonesia’s dairy demand is expected to rise substantially.

Over the past year, the USDEC has led the development of the U.S.-Indonesia Dairy Partnership Program, which launched its first farmer education and training session in Indonesia in January. Conducted in collaboration with the agriculture departments of New Mexico and Wisconsin, New Mexico State University, and Indonesian universities and dairy companies, the program focuses on providing technical educational materials to help small-scale Indonesian dairy farmers improve milk quality and production. As these practices are implemented, U.S. dairy products will serve as a complementary resource to support Indonesia’s growing demand for dairy products.

(Source: National Milk Producers Federation)

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