REPUBLIKA.CO.ID, JAKARTA -- The Milk Processing Industry Association (AIPS) has appealed to the government to develop dairy farming through integrated investment regulations in a bid to reduce the imports of fresh milk.
"About 80 percent of the fresh milk in Indonesia was imported because the domestic supply covers only 20-25 percent of its needs," Executive Director AIPS Yelita Basri stated here on Monday (12/1).
According to her, 44 large- and medium-scaled milk processing companies produced 3.8 million tons of milk per year.
"We demand additional dairy cows for the milk processing industry to cover the increasing gap between imports and domestic supply," she emphasized.
Currently, 100 thousand farmers produce 690 thousand tons of milk per year. Although there are about 600 thousand dairy cows in the country, the dairy productivity is still low as only half of the cows are producing milk.
Basri pointed out that these conditions have been compounded by the increasing beef prices, which have led to a lot of dairy cattle being slaughtered for meat.
Therefore, AIPS has proposed to the government, through the Investment Coordinating Board (BKPM), to integrate the dairy processing industry and dairy farming through an investment licensing system.
"Investing in milk processing should be carried out by partnering with farmers to increase the production of fresh milk," she explained.
According to the BKPM, the total realization of investments in dairy farms and processing industries (including meat and milk) during the period between 2010 and the third quarter of 2014 reached Rp39.5 trillion.
The domestic investment plan (PMDN) in the same period reached Rp11.5 trillion, and foreign direct investment (PMA) reached US$2.8 billion, or Rp35.4 trillion.
The domestic investment for the January-September 2014 period reached Rp832 billion, which was significantly lesser than the total realization of Rp2.8 trillion recorded in 2013.
Foreign direct investment for the period between January and September reached US$577 million, lesser than the previous year's recorded value of US$674 million.
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