Making the Dairy Industry a New Economic Star: Indonesia Still Has Much Homework

Throughout the second quarter of 2026, the fresh milk processing industry recorded growth of 17.2% quarter-to-quarter, or a 29.89% increase year-on-year, driven by rising demand for milk. Commodity Expert at CNBC Indonesia Research, Emanuella Egatirta, revealed that the surge in the dairy industry’s growth was supported by additional demand for the Free Nutritious Meal (MBG) programme. Nevertheless, domestic milk supply only meets 25% of total demand, with the remainder supplied by imported milk. National milk production in 2025 stagnated at 820.8 thousand tonnes, while milk imports rose to 81%. Therefore, efforts are needed to increase milk production and add dairy cows to reduce milk imports. In 2025, Indonesia imported 15,000 pregnant cows, bringing the total dairy cow population to 500,000. However, this figure remains far from the requirement of 1 to 2 million pregnant cows needed to increase the cattle population and boost milk production.