Strong competition and rapid rise of imported cow milk in Indonesia

The packaged cow milk manufacturers in Indonesia are now facing an apparent and solid competition from milk that is produced and imported from Australia. This imported packaged milk entered Indonesia earlier this year and is now accounted for 20% of the total market share despite its considerably higher price at an average price of IDR 38.000-48.000/Liter, in comparison to the nationally produced milk that is currently sold at the highest average price of IDR 18.000-24.000/Liter. A number of manufacturers stated that the rapid rise of this milk is mainly attributed to its premium packaging and its direct approach where the importers only target a specific consumer segment and specifically distribute their products through high-end modern retailers in Indonesia.