Milk Demand Projected to Reach 1.5 Million Litres by 2029
Minister for National Development Planning and Head of the National Development Planning Agency (Bappenas), Rachmat Pambudy, estimates that milk demand in 2029 will increase by 1.5 million litres due to the Free Nutritious Meals (MBG) project. “This demand is a green light for investors,” said Rachmat at the BRIN building in Jakarta on Friday, 27 March 2026.
In addition to milk, Rachmat stated that beef demand will increase by 47,000 tonnes at the same time due to MBG. He said the market is ready and stable for the surge in demand for this protein.
The statement was delivered by Rachmat during his opening remarks at an international conference on sustainable livestock industry transformation, held at the National Research and Innovation Agency building.
On that occasion, Rachmat explained that Indonesia experienced a food crisis, including rice, in the early 1960s. However, Indonesia finally achieved rice self-sufficiency in 1985 through the Green Revolution carried out in 1970.
At that time, Rachmat said, Indonesia also produced livestock products, including milk, so that by 1980 Indonesia achieved independence in livestock production, particularly cattle and beef as well as poultry.
He said that currently Indonesia’s landscape is shifting from food security to food sovereignty. He also mentioned the MBG programme, which he called a game changer because it supports social and economic growth.
Rachmat also touched on milk production, which is still at 21%. He said the government targets 96% milk self-sufficiency and 70% beef self-sufficiency by 2029. To achieve this target, Rachmat said, the government is opening opportunities to import 1 million dairy cows and 1 million beef cattle for breeding.
However, Rachmat said, the process of achieving milk and beef self-sufficiency is also inseparable from three challenges. The first is low productivity, because more than 90% of production is managed by smallholder farmers who rely on traditional practices.
The second challenge is the breeding gap, mainly for cattle, because the local breeding structure is still weak, which triggers import dependency as private companies tend to prefer fattening.
Finally, there are challenges in the form of high feed costs, land conflicts, and biosecurity threats such as foot-and-mouth disease.
To address these issues, Rachmat said, the government is prioritising the development of the Red White Cattle with high productivity, which is the result of collaboration between the government, academics, and the private sector.
He also encouraged national private companies to invest directly in livestock research. In addition, according to Rachmat, the government is inviting local investors who have a deep understanding of domestic demand, enabling more targeted local innovations. Furthermore, he encouraged shifting fragmented smallholder farming towards integrated large-scale centres.