Indonesia has embarked on an ambitious initiative under President Prabowo Subianto to significantly expand its dairy industry by importing one million Holstein-Friesian cows over five years at an estimated cost of nearly US$3 billion. The program is intended to support the government’s flagship free meals scheme for 83 million children and expectant mothers, while also reducing reliance on imported milk powder from Australia, New Zealand, and the United States. Currently, Indonesia’s dairy herd stands at around 220,000, and the plan aims to more than quadruple that number.
Unlike conventional state-funded programs, this initiative relies heavily on private sector participation. The Ministry of Agriculture has pressed over 200 businesses, including multinational corporations, to commit to importing at least 20 cows per year from 2025 to 2029. By May, 196 businesses had pledged participation, though many had no prior experience in dairy farming. Reports suggest companies felt compelled to comply, fearing potential obstacles in securing import licenses for their core operations, such as frozen meats and milk powder, if they refused. In one case, government approval of an import license was expedited only after a company increased its cattle commitment to the ministry’s “minimum” threshold.
Progress has been slower than anticipated. Since the scheme’s December launch, only 11,375 dairy cows had been imported by July—well short of the 200,000 targets for 2024. Most imports so far have come from Australia. The sluggish pace has raised concerns about the feasibility of scaling up both the cattle program and the promised free meals initiative, which was central to Prabowo’s election campaign.
Cooperatives such as Laras Ati in West Java are at the forefront of implementation, managing cattle purchased by private investors with limited livestock experience. For example, members of the Indonesian Association of Animal Protein Entrepreneurs (APPHI), primarily engaged in cold chain distribution, collectively purchased hundreds of cows now housed in cooperatives. Businesses are expected to invest around IDR 45 million (US$2,800) per cow, covering purchase, transport, feed, and vaccines, with returns projected in approximately three and a half years through shared revenue with cooperatives.
While the government has presented this approach as an opportunity for investment and self-sufficiency, critics question its design and sustainability. Industry experts have expressed doubts about the capacity of inexperienced firms to manage livestock effectively, as well as the adequacy of Indonesia’s infrastructure to handle large-scale imports. Animal welfare and disease management are also pressing concerns, particularly after a devastating foot and mouth disease outbreak in 2022 reduced cattle populations in some regions by half.
Analysts warn that without stronger oversight and more realistic planning, the program risks failing to deliver the promised results. Rochadi Tawaf of the Cattle and Buffalo Breeders Association emphasized that success requires proven expertise in dairy management, not inexperienced firms compelled by government pressure. Similarly, foreign exporters, such as Dairy Livestock Exports in Australia, have highlighted deficiencies in Indonesia’s facilities to ensure animal welfare on such a scale.
Overall, the initiative reflects Indonesia’s broader push for food security and self-sufficiency. However, its heavy reliance on reluctant, inexperienced private investors, slow progress, and structural weaknesses in infrastructure and management cast uncertainty over its long-term viability and the government’s ability to meet both nutritional and economic goals.
September 9, 2025, The Jakarta Post
(https://www.thejakartapost.com/business/2025/09/09/dairy-duty-indonesia-presses-businesses-to-find-a-million-cows.html)