Brebes, Indonesia: Indonesia has launched the development of what is poised to become the country’s largest dairy farm as it seeks to reduce its dependence on imported milk and strengthen domestic dairy production.
Speaking at the groundbreaking ceremony in Brebes, Central Java, Indonesia’s Minister of Agriculture, Andi Amran Sulaiman, said the country currently imports between 3.6 and 3.8 million metric tons of milk annually—equivalent to nearly 80% of national demand.
“Indonesia’s dependence on imported milk presents both a challenge and an opportunity,” the Minister said, noting that the government estimates at least 20 large-scale modern dairy farms will be required to achieve long-term milk self-sufficiency.
To accelerate investment, the Indonesian government has committed to simplifying licensing and regulatory procedures and is actively courting both domestic and foreign investors for the sector.
The flagship project, being developed by Global Dairi Bersama (GDB), a subsidiary of the Savoria Group, represents an investment of approximately Rp 1.2 trillion (US$67 million). Spread across 710 hectares, the integrated dairy complex will have the capacity to house up to 30,000 dairy cows.
Once fully operational, the facility is expected to produce approximately 180,000 metric tons of fresh milk annually, accounting for nearly 20% of Indonesia’s current domestic milk production.
The project has been designed as a vertically integrated dairy ecosystem and will include:
- A large-scale milk processing facility
- Livestock feed production units
- Biogas generation systems
- Organic fertilizer manufacturing plants
Government officials say the initiative extends beyond milk production and is expected to serve as a catalyst for rural development. Planned interventions include partnerships with local farmers, dairy extension and training programs, feed production initiatives, and sustainable waste management systems.
Industry analysts note that Indonesia’s dairy sector has historically struggled to meet domestic demand, leaving the country heavily reliant on imports. The success of the Brebes project could provide a blueprint for future investments and significantly improve national dairy resilience.
Read More: NDDB Lays Foundation for Major Dairy Infrastructure Projects in Andhra Pradesh
“Large integrated dairy farms can create economies of scale while supporting smaller producers through extension services and market linkages,” said a Southeast Asian dairy industry observer. “Indonesia appears to be adopting a long-term strategy that combines production, processing, and sustainability.”
The development comes at a time when Indonesia’s dairy industry is showing signs of diversification and export growth.
Earlier this year, the country recorded a milestone by exporting yoghurt to Vietnam for the first time. The inaugural shipment, valued at US$65,000, was facilitated by Indonesia’s Ministry of Trade and reflects growing international confidence in Indonesian value-added dairy products.
According to official data, Indonesia’s dairy exports reached US$71.68 million in 2025, continuing a steady upward trajectory in recent years.
If the government’s target of establishing at least 20 modern dairy farms is realized, Indonesia could substantially reduce its import dependence over the coming decade while creating new opportunities for farmers, processors, and rural communities.
For the global dairy industry, Indonesia’s latest investment underscores a broader trend: emerging economies are increasingly viewing dairy not merely as an agricultural activity, but as a strategic sector linked to food security, rural development, and economic growth.
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