Central Java Attracts More Investors as Rp1.2 Trillion Dairy Farm Begins Construction
A large-scale integrated dairy farm with a capacity of up to 30,000 head of cattle has begun construction in Karangbale Village, Larangan Sub-district, Brebes Regency, Central Java.
The construction, carried out by PT Global Dairi Bersama, was marked with a groundbreaking ceremony on Monday (20/7).
The first stone was laid by Central Java Governor Ahmad Luthfi, Agriculture Minister Andi Amran Sulaiman, Chair of Commission IV of the House of Representatives Siti Hediati Soeharto, Brebes Regent Paramitha Widya Kusuma, and CEO of Saviora Group Ihsan Mulia Putri.
The integrated farm on 710 hectares of land will house around 30,000 dairy cattle, complete with milk processing facilities, waste treatment into biogas and fertiliser, and a livestock feed centre. The investment value of the integrated dairy farm is estimated at Rp1.2 trillion.
“This is the largest dairy farm and milk factory in Indonesia and Southeast Asia. So Central Java will become more self-sufficient in food, particularly with regard to milk production. This is further supported by the Agriculture Minister,” said Governor Ahmad Luthfi after the event.
He added that through this investment, Central Java will be supported as the centre of the national dairy industry. Currently, the dairy cattle population in Central Java is around 77,566 head, with milk production of around 78,465 tonnes per year. Meanwhile, milk demand in Central Java reaches approximately 94,730 tonnes per year.
He is confident that milk production from the farm will cover the milk needs of Central Java and the nation.
“Central Java’s needs will certainly be very well met with this investment. So far, we have still needed almost 22,000 tonnes of milk per year, which we source from other provinces. Once this is up and running, we will have more than enough for our milk needs,” he explained.
Moreover, the presence of PT Global Dairi Bersama can also spur wider investment in Central Java. The province has long been a magnet for investors, given its stable conditions, straightforward permitting, and competitive workforce.
“Central Java is now becoming a centre of investment, both in labour-intensive and capital-intensive industries. This (farm) is capital-intensive: on one hand it drives very large investment, and on the other it empowers the surrounding community,” he said.
CEO of Saviora Group, Ihsan Mulia Putri, said the groundbreaking and establishment of PT Global Dairi Bersama represents a commitment to support the government’s efforts towards national milk self-sufficiency.
She is optimistic that the integrated dairy farm will give rise to a self-reliant and competitive dairy industry ecosystem, as well as create new inclusive economic growth in rural Central Java.
“We chose Brebes in Central Java because of its extraordinary agricultural potential, the strong work ethic of its people, and the positive support from the Governor and Regent,” she said.
According to her, the 30,000 dairy cattle at the farm will produce around 180,000 tonnes of fresh milk per year. That figure will raise Central Java’s ranking to the second-largest milk-producing region in the country.
“The 30,000 cattle mean adding 32% to Central Java’s dairy cattle population, and an increase in fresh milk production of around 18-20%,” she said.
In practice, PT Global Dairi Bersama will forge partnerships with local farmers and breeders. There will be three forms of partnership: a partnership for bull cattle to be raised as beef cattle; a partnership for dairy cattle producing below 15 litres per day, to be managed by the community with the milk sold to the farm; and a partnership for feed production.
Meanwhile, Agriculture Minister Andi Amran Sulaiman said national milk demand continues to soar as the public’s nutritional needs rise.
He therefore urged Central Java to achieve food self-sufficiency, especially in milk, to meet national demand. Seeing the model adopted by PT Global Dairi Bersama, he is confident that Central Java, and Indonesia more broadly, will soon reach the milk self-sufficiency target.