JAKARTA - The Ministry of Industry (Kemenperin) said that there was a change in market demand, which was initially dominated by powder milk and sugary thickness, turning into liquid milk such as ultra high temperature processing (UHT) milk.

"There has been a change in demand in the market, from powder milk and condensed milk to liquid milk (UHT and pasteurization) in recent years," said Director General of Agro Industry at the Ministry of Industry Putu Juli Ardika, Friday, May 24.

Meanwhile, the Ministry of Industry noted that the largest production in the dairy processing industry is currently dominated by liquid milk and cream which reaches 49 percent. Meanwhile, milk has 17 percent of sugar and powder milk is 17.5 percent.

Putu assessed that despite the change in demand for the dairy product market, the sector still contributed greatly to the country's foreign exchange income. This can be seen from the realization of investment in the dairy processing sector throughout 2023 which reached IDR 23.4 trillion and was able to absorb up to 37,000 workers.

In addition, the performance of the domestic dairy processing industry is also quite good because it is supported by 88 factories with a total production capacity of 4.64 million tons per year.

"This shows that business in the dairy processing industry sector is still quite prospective as well as reflects Indonesia as the main destination for investment because of the creation of a conducive business climate with various pro-business policies," he said.

He is also optimistic that the performance of the dairy processing industry will increase along with the increase in people's per capita income and middle class growth.

"In addition, the transformation of people's lifestyle has become healthier, so it is believed that consumption of processed dairy products will continue to grow high in the future," he added.

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