Ministry Of Agriculture Encourages Industrial Partnerships With Farmers To Awaken The Indonesian Consumption Sector

Director General of Livestock and Animal Health (Directorate General of PKH) of the Ministry of Agriculture Agung Suganda. (Photo: Doc. Antara)

JAKARTA - The Ministry of Agriculture (Kementan) encourages the strengthening of partnerships between industry and breeders for the revival of the national sector through increased production, quality, and sustainability of dairy farming businesses.

"We encourage the dairy processing industry or IPS to actively partner with local cooperatives and breeders. IPS must play a role in supporting the increase in the national dairy cattle population," said Director General of Animal Husbandry and Animal Health (Ditjen PKH) of the Ministry of Agriculture Agung Suganda in a statement in Jakarta, quoted by Antara, Sunday 15 December.

He said that his party was preparing regulations. And all IPS are asked to commit to supporting the Government to increase the dairy cow population.

"The government does not force it, only we ask the industry to pay attention to the fate of the people," he said.

Agung revealed that the Government is drafting a Presidential Regulation (Perpres) on the Acceleration of National Milk Production. This regulation will be a foothold to ensure the absorption of fresh milk from farmers and suppress the import of milk raw materials.

"Strategic steps are also taken through proposing 30 locations to become National Strategic Projects (PSN)," he said.

With the status of PSN, Agung continued, land rental costs will be cheaper, coupled with infrastructure and logistics support. This is included in the 2025-2029 RPJMN which will strengthen the national wage ecosystem.

He said that the national manufacturing industry received serious attention from the Ministry of Agriculture following the impact of Mouth and Nail Disease (PMK) in 2022.

"The PMK outbreak reduces the dairy cow population by more than 10 percent and reduces productivity by 30-40 percent. The impact is extraordinary for the national company," said Agung when reviewing the Milk Collection Center (MCC) facility which is the result of the partnership between PT. Frisian Flag Indonesia (FFI) and the SAE Pujon Cooperative, in Malang, East Java.

He mentioned that currently Indonesia's milk consumption has only reached 16 liters per capita per year, far below Vietnam which has reached 26 liters.

"We want the milk to be included in the Free Nutrition Food (MBG) menu launched by the President, so that the people are more educated and the nutrition of Indonesian children is fulfilled," he added.

To reduce dependence on milk imports, which currently reach 80 percent of the national demand, the Government is targeting an additional 1 million dairy cattle population in the next five years until 2029.

"By 2025, our target is to bring in 200 thousand dairy cows. Currently, there is already a commitment of investors to bring in 185 thousand cows by 2025. This means that we only need 15 thousand more to achieve next year's target," explained Agung.

Agung also appreciated PT Frisian Flag Indonesia (FFI)'s steps with the SAE Pujon Cooperative which built the Milk Collection Center (MCC) facility.

"This facility answers doubts regarding the quality of milk from farmers, making it easier for the industry to accept," said Agung.

This partnership is a clear proof of how cooperatives and private companies can collaborate to strengthen the livestock sector.

"This is an example that can be applied in other areas. The government does not force it, but we ask all parties in the dairy industry to pay attention to the fate of farmers," he said.

With these strategic steps, the Directorate General of PKH of the Ministry of Agriculture is optimistic that the national company industry can revive and develop.

"Hopefully this will be a driving force and encouragement for all sectors to strengthen Indonesia's camp, so that it is more independent, qualified, and provides welfare for farmers," said Agung.

"From this effort, great hopes arise for a stronger Indonesia in meeting national milk needs and suppressing dependence on imports," added Agung.