Minister of Agriculture Amran Sulaiman received a visit from Madam Thai Huong, Chairman of TH Group. The arrival of the Vietnamese company’s top brass was in order to explore investment opportunities in the Indonesian dairy farming sector.
The meeting, which took place on Thursday (13/2/2025) afternoon in Jakarta, was the first step for strategic cooperation between TH Group Vietnam and Indonesia in the future.
Amran said that Indonesia has a fairly large need for milk and beef. Currently, domestic fresh milk production is only able to meet around 20% of national needs, with a deficit of 4.9 million tons.
This figure has increased with the free nutritious food program from the new government, which increases the need by 3.6 million tons of fresh milk.
“Indonesia must be able to increase its milk and beef production capacity, which is around 4.9 million tons for fresh milk and 0.83 million tons for beef. With the additional needs of the free nutritious meal program, the production shortfall becomes 8.5 million tons for fresh milk and 0.88 million tons for beef,” said Amran in a written statement, Friday (2/14/2025).
In response to this condition, the government is open if there are foreign investors entering to work on the Indonesian dairy industry. According to Amran, the government is ready to provide various policy incentives, ranging from exemption from import duties for livestock and dairy industry equipment, to funding schemes with competitive interest rates and livestock business insurance.
As a form of facilitation, the Ministry of Agriculture has prepared three strategic locations that can be used for large-scale dairy farming investments, namely Wajo-Sidrap, South Sulawesi; North Barito-South Barito, Central Kalimantan, and Poso (Napu Valley), Central Sulawesi.
In addition to providing land, the government also ensures supporting infrastructure such as road access, electricity, clean water, and health and education services for workers in livestock areas.
“The success of dairy industry investment does not only depend on land, but also on adequate infrastructure. Therefore, the government is committed to building better road access, ensuring a stable electricity supply, and providing health and education facilities for workers in this sector,” Amran explained.
The government is currently continuing to encourage foreign investment in cattle farming. This effort is carried out as one of the strategic steps in realizing food self-sufficiency. This year, the Ministry of Agriculture is targeting to bring in 200 thousand dairy cows and 200 thousand beef cattle. With this meeting, it is hoped that investment cooperation between Indonesia and TH Group Vietnam can be realized soon, so as to increase domestic milk production and strengthen national food security.
February 14, 2025, detikFinance
(https://finance.detik.com/berita-ekonomi-bisnis/d-7779255/vietnam-bidik-bisnis-peternakan-sapi-susu-ri-pemerintah-janjikan-insentif)