Indonesia dairy sector posts strong Q2 2026 growth amid government nutrition program

Consumer staples aggregate revenue in Indonesia grew 11.9% year‑on‑year in the second quarter of 2026, far above the five‑year average of 2.8%. The surge was driven largely by the government‑funded Makan Bergizi Gratis (MBG) free‑meal program, which increased demand for milk products.

The dairy processing industry expanded 17.3% quarter‑on‑quarter and 29.9% year‑on‑year, according to Badan Pusat Statistik. Production reached 169.2 million litres in 2025, up from 163.1 million litres in 2024, with the sector’s value rising to roughly Rp 1.41 trillion.

Analysts at Indo Premier Sekuritas note that the growth reflects government spending rather than a full recovery in consumer purchasing power, but the sector’s performance is now highlighted in official GDP reporting, signalling new investment opportunities.