Unlocking Indonesia's dairy potential: assessing the role of fresh milk imports in achieving self-sufficiency

Abstract

Indonesia exhibits significant potential for the development of dairy cows agribusiness; however, the country continues to register notable levels of fresh cow's milk imports. This study aims at scrutinizing the trajectory of Indonesia's fresh cow's milk imports spanning the years 2010 to 2019, delineating the origins of these imports and elucidating the determinants affecting the volume of fresh cow's milk imports. Secondary data sourced from the Center for Agricultural Data and Information Systems of the Ministry of Agriculture in 2019 form the basis of this inquiry. Methodologically, the data underwent trend analysis, quantitative descriptive analysis, and multiple linear regression. The findings reveal a downward trend in fresh milk imports across Indonesia during the period under examination. Notably, New Zealand emerges as the foremost contributor to Indonesia's fresh milk imports. The study identifies income variables, domestic fresh cow milk production, and consumption levels as collectively influencing the volume of fresh cow's milk imports. Furthermore, the import price of fresh cow's milk manifests a significant impact on import volumes, whereas the production and consumption metrics of fresh cow's milk exhibit no discernible influence on import quantities within Indonesia.