Farmlandgrab reports Indonesia is preparing 1.5 million hectares for dairy farming and cow imports

This land allocation will support the import of 1.5 million dairy cows and ensure adequate milk production.

Ali Agus, an Expert Staff of the Agriculture Minister, explained that this vast area is necessary to grow sufficient feed for the cows and tackle current pasture shortages. The Ministry is currently mapping potential sites and collaborating with investors to facilitate the program.

"We are tasked with securing 1.5 million hectares across various regions in Indonesia," Ali Agus said in Yogyakarta on Friday. "Each cow requires about 40 kilograms of grass daily, and we’ve calculated the land needed to produce this amount."

Identified regions for land preparation include the highlands of Palu, Berastagi in North Sumatra, and near Muara Enim in Palembang, South Sumatra. The Ministry is also working with palm oil farmers in Palembang to integrate dairy farming with existing plantations.

To ensure milk self-sufficiency, the government is exploring imports of dairy cows from New Zealand, Australia, the United States, and Brazil.

"We are negotiating with these countries due to insufficient domestic supply," Ali Agus noted.

The Ministry is also engaging with private investors and international partners. Recent discussions include an investor from the Middle East seeking 20,000 hectares and interest from China and Vietnam for a minimum of 5,000 hectares.

Local dairy farmers will be involved, with financing models being developed to support their participation, including facilitated credit options and insurance.

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