Indonesia secures major dairy investment deal with UAE

INDONESIA – Indonesia has taken a significant step toward strengthening its dairy industry by securing a key investment deal with the United Arab Emirates (UAE).

The agreement, finalized this week, is part of a broader effort to boost the country’s food security and reduce its reliance on imported dairy products. 

The deal focuses solely on the dairy sector, with both nations aiming to enhance production and develop a sustainable supply chain.

The UAE’s prominent Al-Ain Farms, a leading dairy company, will partner with Indonesian authorities to invest approximately US$50 million in the country’s dairy infrastructure. 

This investment is expected to modernize local dairy farms, improve milk processing facilities, and increase domestic milk production. 

Indonesia, which currently imports over 70% of its dairy needs, sees this collaboration as a vital move to meet growing demand. 

The country’s dairy consumption has risen steadily in recent years due to population growth and changing dietary preferences.

A senior official from Indonesia’s Ministry of Agriculture welcomed the deal, emphasizing its potential impact. 

“This partnership with the UAE will help us build a stronger dairy industry and ensure our people have access to affordable, high-quality milk,” the official said. 

The investment will also create jobs, particularly in rural areas where dairy farming is a key livelihood. 

Al-Ain Farms is expected to bring advanced technology and expertise, allowing Indonesian farmers to improve milk yields and quality.

The agreement aligns with Indonesia’s broader economic goals. The government has been actively seeking foreign investment to bolster its agricultural sector. 

According to industry experts, the UAE’s involvement could pave the way for further collaborations in the region. 

The Gulf nation, known for its strong dairy market despite limited local production, views Indonesia as a strategic partner due to its large market and agricultural potential.

A representative from Al-Ain Farms expressed optimism about the deal. “We are excited to work with Indonesia and contribute to its dairy growth. This is a win-win for both sides,” the representative stated. 

The company plans to begin operations by mid-2025, with initial efforts focused on upgrading facilities in Java, a major dairy-producing region.

While specific details of the deal are still emerging, reports suggest that the investment could reduce Indonesia’s dairy import bill by up to US$20 million annually within five years. 

Challenges remain, including the need for better infrastructure and training for local farmers. However, both nations are committed to overcoming these hurdles. 

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