The Indonesian dairy industry imports 80% of raw materials, these are the 3 main causes

Published 2024년 5월 27일

Tridge summary

The Indonesian milk processing industry is growing but relies heavily on imported raw materials, with only 20% of needs met domestically due to low fresh milk production growth and high feed costs. The industry, which contributed IDR 23.4 trillion and employed 37,000 people in 2023, has been aided by the government and has seen a shift in market preference towards liquid milk. Despite the challenges, the industry remains optimistic, with plans for digitalization and infrastructure development, and has potential for growth, attracting both domestic and international investments.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - Director General of Agro Industry at the Ministry of Industry (Kemenperin) Putu Juli Ardika admitted that the domestic milk processing industry still relies on imported raw material supplies of up to 80%. On the other hand, he said, this industry is experiencing growth and is one of the sectors that contributes greatly to the national economy. According to Putu, until 2023, investment realization in the domestic milk processing industry was recorded at IDR 23.4 trillion and has absorbed a workforce of 37 thousand people. It is recorded that there are 88 factories processing milk and its derivatives, with a total production capacity of 4.64 million tons per year. However, only around 20% of the raw material needs for the milk processing industry are met domestically. "The existence of new investment in the milk processing industry sector, especially liquid milk producers, has led to an increase in the need for raw materials for fresh milk from within the ...

Source: Cnbcindonesia