In Boyolali, last week dozens of farmers took the opportunity to “take a bath.” Behind the discontent is the unresolved issue of quotas. Currently, at least 80% of raw materials come from abroad. For years there has been a demand for a law to regulate the sector.
Jakarta () – In the Boyolali region, in central Java, a protest by Indonesian milk producers has broken out against the massive import of raw material, which in the form it has taken in recent days has caused deep discontent between citizens and civil society. Last week, in fact, dozens of milk producers gathered to demonstrate threw thousands of liters of fresh milk into the trash, using them for a collective “bath.”
Last week’s demonstration is related to farmers’ frustration over the treatment of fresh local milk compared to that imported from abroad. This discontent is the result of government policies that have led to almost 200,000 tons of product being thrown away.
The anger and discontent of the ranchers not only affected the Boyolali region, but also involved other cities on the island of Java. In the previous days, similar scenes were seen with huge quantities of milk dumped on the streets in Pasuruan, in the east, also because after 40 hours in temporary warehouses, the product was already unusable.
This can only happen when local fresh dairy products are not purchased from the so-called Milk Production Industry, or Ips,” explained Teguh, a member of the National Milk Council, in a note dated November 9. The Center of Reform on Economics (Core) Indonesia points the finger at the lack of cooperation between dairy producers and regulatory bodies. The facts show that no more than 20% of the total Indonesian dairy farmers have signed a collaboration agreement with the agencies,” says Eliza, representative of Core. And since national production barely reaches 21%, “at least 79% is purchased,” he warns, “from abroad.”
The Minister of Cooperatives, Budi Arie Setiadi, confirms that 80% of the milk supply to meet national demand is imported. According to Government estimates, national milk consumption in 2022 and 2023 will be 4.4 and 4.6 million tons, respectively. Meanwhile, according to existing trade data, national milk consumption in 2022 and 2023 was 4.44 and 3.7 million tons, respectively.
Currently, the number of national dairy cooperatives amounts to 59. In 2023, the number of cows in dairy cooperatives was 227,615, producing a total value of 470 thousand tons of milk. On the other hand, modern dairy farms with 32 thousand cows can produce 164 thousand tons. Currently, the country from which the largest amount comes is New Zealand, which produces 21.3 million tons of milk. Along with Australia, Wellington benefits from the free trade agreement (FTA) with Jakarta.
At the moment, a 2018 law that is supposed to regulate the dairy sector continues to be debated within the framework of a partnership between farmers and agencies. In response to the new protests, Indonesian Agriculture Minister Amran Sulaiman suggested suspending the import permit of five Ips entities. The amendment is still being debated, so that the industry can buy fresh local dairy products,” explains the minister. In 1997-1998, the International Monetary Fund (IMF) had forced Jakarta to revoke binding regulations for the absorption of local fresh dairy products by Ips, due to the growing need in the domestic market.
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