Indonesian Political, Business & Finance News

Central Java Governor Inaugurates Rp1.2 Trillion Dairy Farm Development

| Source: CNN_ID Translated from Indonesian | Agriculture
Central Java Governor Inaugurates Rp1.2 Trillion Dairy Farm Development
Image: CNN_ID

Central Java Governor Ahmad Luthfi, together with Agriculture Minister Andi Amran Sulaiman, inaugurated the construction of a large-scale integrated dairy farm in Karangbale Village, Larangan District, Brebes Regency, on Monday (20/7). The integrated farm, spanning 710 hectares, will accommodate around 30,000 dairy cows and will be equipped with milk processing facilities, waste-to-biogas and fertiliser processing, and an animal feed centre. The investment value for the integrated dairy farm is estimated to reach Rp1.2 trillion. Built by PT Global Dairi Bersama, the groundbreaking ceremony was also attended by Chair of Commission IV of the Indonesian House of Representatives Siti Hediati Soeharto, Brebes Regent Paramitha Widya Kusuma, and CEO of Saviora Group, Ihsan Mulia Putri. Governor Ahmad Luthfi stated that this is the largest dairy farm and milk factory in Indonesia and Southeast Asia, and it will support Central Java’s food self-sufficiency in milk production, especially with the backing of the Agriculture Minister. The investment is predicted to propel Central Java into a national dairy industry hub. Currently, the dairy cow population in Central Java is around 77,566, producing approximately 78,465 tonnes of milk annually, while demand reaches about 94,730 tonnes per year. Luthfi expressed optimism that the farm’s production will cover the milk deficit in Central Java and nationally. He noted that the province currently requires almost 22,000 tonnes of milk from other provinces, and this investment will result in a surplus. The presence of PT Global Dairi Bersama is also expected to further develop investment in the Central Java region, which has already attracted investors due to its conducive environment, easy licensing, and competitive workforce. CEO Ihsan Mulia Putri said the establishment of PT Global Dairi Bersama is a commitment to support the government’s efforts towards national milk self-sufficiency. She expressed optimism that the integrated dairy farm will create an independent and competitive milk industry ecosystem and foster new, inclusive economic growth in rural Central Java. The 30,000 dairy cows are expected to produce around 180,000 tonnes of fresh milk per year, elevating Central Java to the second-largest milk-producing region nationally. The company plans to partner with local farmers and breeders through three schemes: a partnership for male cattle to be raised for beef, a partnership for dairy cows producing less than 15 litres per day to be managed by the community with the milk sold to the farm, and a partnership for feed production. Agriculture Minister Andi Amran Sulaiman stated that national milk demand continues to surge along with the increasing need to fulfil public nutrition, and he encouraged Central Java to achieve milk self-sufficiency to meet national needs. He agreed that the scheme run by PT Global Dairi Bersama can support Central Java in meeting its milk self-sufficiency targets.

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