November 14, 2024

 

Dairy farmers in Indonesia protest over imports, prompting government action

Dairy farmers and milk collectors in Boyolali and Semarang, Central Java, Indonesia, staged demonstrations over the weekend to protest declining demand for local milk.

 

The protests included symbolic acts, such as bathing in milk, to highlight the impact of imported dairy products on local farmers.

 

The protesters demanded government intervention, citing difficulties in selling milk to village cooperatives since September. Dono Nugroho, a farmer and protester, stated that dairy aggregators have been unable to sell collected milk, leading to significant financial losses. "We can collect milk from the farmers, but selling it has been hard since early September," he said, adding that his losses have exceeded IDR 100 million (US$6,367).

 

Boyolali protest coordinator Sriyono highlighted the scale of the issue, noting that oversupply has forced cooperatives to discard around 50,000 litres of milk daily. "In Boyolali alone, about 30 tonnes of leftover milk per day goes to waste," he said.

 

In Semarang, a similar protest saw dairy farmers distribute 1,000 litres of milk for free outside the Getasan district office, drawing hundreds of locals who collected the milk in bottles and containers.

 

In response to the protests, Indonesia's Agriculture Minister Andi Amran Sulaiman suspended the import permits of five dairy processing companies and announced plans to reinstate a policy requiring processors to purchase local milk.

 

Minister Amran convened a closed-door meeting with dairy farmers and industry representatives at the Agriculture Ministry in Jakarta, Indonesia. The meeting resulted in an agreement to support local milk production. The ministry pledged to revise regulations to ensure domestic processors source milk from local farmers.

 

"From now on, all dairy processors must source milk from local farmers," Amran stated, adding that directives have already been issued to local agencies for immediate implementation.

 

The government also plans to revise a Presidential Regulation from the late 1990s, which had removed the obligation for dairy processors to purchase local milk. "We're reviving this policy to support our farmers and boost national milk production," Amran said.

 

Amran further announced the temporary suspension of import permits for five companies found rejecting local milk. "If any of these companies continue to refuse to purchase milk from local farmers, we will revoke their permits," he warned.

 

Data from Indonesia's Central Statistics Agency (BPS) for 2023 revealed that domestic fresh milk production in Indonesia reached only 837,223 tonnes, fulfilling just 19% of the national demand of 4.4 million tonnes. The remaining 81% of demand is met through imports.

 

BPS Deputy Pudji Ismartini reported a rise in milk imports, which totalled US$94.49 million in August 2024, up from US$77.97 million in July. This represents a monthly increase of 21.19% and an annual rise of 21.12%.

 

-      Jakarta Globe