Cooperating With Milk And IPS Cooperatives, Menkop Ensures Maximum Absorbed Milk Production

Menkop Budi Arie (setpres)

JAKARTA - The Minister of Cooperatives, Budi Arie Setiadi, ensured that national milk production would be maximally absorbed. This follows the action of Boyolali cattle breeders who throw away milk products that are not absorbed by the factory.

"Ensuring the maximum production of farmers and dairy cooperatives can be absorbed by the Dairy Processing Industry (IPS). In this case, the Ministry of Cooperatives will coordinate with dairy and IPS cooperatives to ensure production absorption," said Budi at the Kemenkop Building, Monday 11 November.

Budi added, to absorb milk production, the government will also hold a Free Nutrition Food (MBG) program by relying on domestic milk supplies.

On the other hand, Budi said that the Kemenkop would coordinate with the Ministry of Trade (Kemendag) to evaluate the regulation on milk imports.

Based on data from the Indonesian government, Indonesia's largest milk imports are currently held by New Zealand with milk production of 21.3 million tons.

Budi called New Zealand and Australia a milk exporting country using the Free Trade Agreement (FTA) with Indonesia, which abolished import duties on dairy products, bringing their product prices to 5 percent lower than other global milk exporters.

Budi further said that the Ministry of Cooperatives has also ordered the Revolving Fund Financing Agency (LPDB) to provide financing for dairy cooperatives with the aim of increasing the volume and quality of production.

"Also encouraging dairy cooperatives to enter product downstream," said Budi.