Indonesia targets import reduction through palm-based feed and dairy expansion

The Indonesian Ministry of Agriculture is pursuing several initiatives to reduce reliance on agricultural imports and bolster domestic production.

To address the high cost and dependency on imported soybean meal (SBM) for poultry feed, the Ministry is researching the use of palm-based materials as a substitute. Current research, conducted alongside the National Research and Innovation Agency (BRIN) and various universities, aims to increase the use of palm-based ingredients in feed formulations to over 10%. Currently, palm-based materials account for approximately 5% of feed formulations. Officials noted that challenges remain regarding the nutritional suitability and physical characteristics of materials like palm shells.

In the dairy sector, the government has set a target to add at least 600,000 dairy cows by 2029 to pursue national milk self-sufficiency. Minister of Agriculture Andi Amran Sulaiman emphasized prioritizing domestic production to reduce milk imports. Because domestic fresh milk currently meets only about 20% of national demand, the plan includes not only increasing cattle populations but also improving animal health, feed, financing, and market absorption. Support schemes such as cattle purchase down payments, insurance, and milking equipment are being prepared to assist farmers.