July 23, 2026

 

Indonesia breaks ground for country's biggest dairy farm

 

 

Indonesia on July 20 broke ground on what is expected to become the country's largest dairy farm as the government called for local and foreign investors to build 20 large-scale dairy farms to reduce the country's heavy reliance on imported milk.

 

Agriculture Minister Andi Amran Sulaiman said Indonesia still imports 3.6 million to 3.8 million metric tonnes of milk annually, meeting about 80% of domestic demand, and needs 20 modern dairy farms to achieve self-sufficiency.

 

"We invite both local and foreign businesses to invest here because the market is clear. We need around 20 companies like this if we want to become self-sufficient."

 

Indonesia imports between 3.6 to 3.8 million tonnes of milk annually, equivalent to around 80% of national demand, highlighting significant investment opportunities in the dairy sector, he said.

 

"This is a tremendous opportunity. We are proud to see one of Indonesia's leading companies investing in the dairy industry. This is what President Prabowo Subianto has envisioned," he added.

 

The government has pledged to accelerate licensing and other regulatory processes to support investors.

 

"If investors need permits from the Agriculture Ministry, our staff will personally assist them. Just send the documents via WhatsApp, and we will speed up the process. Investment should never be held back by bureaucracy," Amran said.

 

Central Java Governor Ahmad Luthfi said the Brebes project will span 710 hectares, house up to 30,000 dairy cows, and involve Rp1.2 trillion ($67 million) in investment.

 

The integrated facility will include a milk processing plant, biogas, and organic fertiliser production from livestock waste, and a feed production center. Once fully operational, it is expected to produce 180,000 tonnes of fresh milk annually, equivalent to about 20% of Indonesia's current milk production.

 

"This is the largest dairy farm and milk processing facility in Indonesia. It will strengthen Central Java's position as the country's dairy production hub," Luthfi said.

 

Central Java currently has around 77,566 dairy cows producing 78,465 tonnes of milk annually, while provincial demand reaches 94,730 tonnes.

 

"We still rely on nearly 22,000 tonnes of milk supplied from other provinces each year. Once this facility is operational, it will help meet Central Java's and the nation's milk needs," he said.

 

Luthfi said the Brebes project will be the largest dairy farm in Southeast Asia. By comparison, neighboring Vietnam is home to the TH True Milk Farm in Nghe An province, a high-tech dairy complex with more than 40,000 dairy cattle and annual production of roughly 200 million liters of fresh milk. The Vietnamese facility is widely recognised as one of Asia's largest single-site automated dairy operations.

 

Savoria Group chief executive officer Ihsan Mulia Putri said GDB will promote rural economic growth through partnerships with local communities built around three pillars.

 

The first on producing livestock feed such as forage and corn feed across up to 2,000 hectares annually, benefiting about 5,000 farmers in Brebes and neighboring districts.

 

The second supports smallholder dairy farmers through training, access to superior breeding stock, and guaranteed purchases of fresh milk.

 

The third establishes a dairy bull-fattening programme with an annual capacity of 7,000 cattle.

 

Mulia said the project also adopts sustainable environmental management by converting cow manure into biogas and organic fertiliser, while using solar panels and an integrated waste treatment system.

 

"The integrated dairy farm reflects our strong commitment to supporting the government's goal of achieving national milk self-sufficiency. Through this project, we will partner with 1,000 to 2,000 dairy farmers," she said.

 

- Jakarta Globe