Minister Exposes Causes of Indonesia’s Milk Import Flooding and Impact on Local Farmers

Minister Exposes Causes of Indonesia’s Milk Import Flooding and Impact on Local Farmers

The Milk Dilemma: A Dairy Drama Unfolding in Indonesia

Well, well, well! It appears that Indonesia has found itself knee-deep in a dairy crisis, and who do we blame? Apparently, it’s not the cows this time. No, no! According to Minister of Cooperatives Budi Arie Setiadi, it’s those cheeky milk-exporting countries—particularly New Zealand and Australia—that are milking the situation for all it’s worth. Let’s peel back the onion (or should I say the cheese) on this dairy debacle!

A Flood of Imported Milk

In a recent press conference, Budi laid out the cold, hard facts: Indonesia has got a milk-importation problem! Thanks to an exemption on import duties, our friends from down under are pumping out milk products at prices that would make your local farmer’s heart sink faster than a cow at a talent show! Imagine waking up one day to find that a pint of your beloved fresh milk is being sold at a discount—by a bunch of foreigners who probably think a cow’s moo is a dinner bell.

The Minister explained that these countries are slapping a free trade agreement into the mix, eliminating import duties and effectively undercutting domestic producers. I mean, it’s like saying, “Yes, we’ll take your money, but we won’t let you keep any of it.”

"Milk" That’s Not Milk?

But wait, there’s more! It turns out the imported "milk" that’s flooding the market isn’t quite what you’d expect. If you thought "milk" came straight from the udder, think again! According to Budi, we’re now dealing with skimmed and powdered varieties. That’s right—there’s a difference between the rich, creamy goodness of fresh milk and that sad, processed powder sitting on store shelves like it’s on holiday. It’s like comparing a gourmet meal to a packet of instant noodles; both fill you up, but one leaves you wanting to dance with joy, while the other makes you question your life choices.

Local dairy farmers are feeling the pinch, of course. Budi pointed out that they are getting priced out of the market because farmers can’t compete with the imported stuff. “Hey, our fresh milk costs less than the powdered stuff! Or at least it should,” they might say. It’s a bit like watching a marathon where everyone else is riding scooters while the local lads have to run it on two legs. Talk about a milk mishap!

Solutions Brewing (Not of The Dairy Kind)

So, what’s the plan, you ask? Well, apparently, the Ministry of Cooperatives proposes two solutions: provide incentives for farmers or reconsider that sweet, sweet 0% import duty. Because who doesn’t love making the local dairy farmer’s life a bit sweeter, right?

The Deputy Minister Ferry Juliantono chimed in, noting that imported milk is cheaper by as much as IDR 1,000 to IDR 2,000 per liter! And let’s be honest—no one wants to walk into a shop and see a price tag that makes you question whether you’re buying milk or making an investment in your future health.

The Milk Quality Conundrum

On top of all this, let’s delve into the standards (or lack thereof) of domestic milk. Sonny Effendhi, Executive Director of the Milk Processing Industry Association, has pointed the finger at our local heroes in the dairy world, claiming they’re sneaking in water, sugar syrup, and who knows what else! It’s like a really bad magic trick—you think you’re getting milk, but the moment you take a sip, you’re left looking for the nearest exit.

He insists we must all stand up and say, “Enough is enough!” No more ‘add-ins’ that make you wonder if you’re drinking milk or a chemistry experiment gone wrong! We want the real deal—raw, honest milk straight from the cow, not a concoction that could be sold at a science fair!

Conclusion: Cow-cident or Conspiracy?

In summary, Indonesia’s dairy drama isn’t just about the cows; it’s a multi-layered issue involving economics, quality control, and good old-fashioned competition. Will the local farmers rise up and reclaim their rightful place in the dairy district? Or will they forever stare up at the shelf, wishing they could climb that ladder—one pint at a time?

So, as we sip on that tall glass of milk (hopefully fresh for a change), let’s keep our fingers crossed for our local dairy farmers. Because every cow deserves a fair chance, and every milk-loving citizen deserves to know exactly what they’re drinking!

In a world where milk is more than just a drink, it’s a lifeline—let’s hope the government is taking notes! Now that’s moo-ving forward!

Jakarta, CNN Indonesia

Minister of Cooperatives Budi Arie Setiadi shed light on the factors contributing to Indonesia’s overwhelming influx of imported milk.

According to him, the major issue stems from the exemption or elimination of import duties on milk, creating a loophole that exporting nations like New Zealand and Australia are exploiting.

“Milk exporting countries are capitalizing on the free trade agreement with Indonesia, which has led to the removal of import duties on dairy products. This has rendered their products at least five percent more affordable compared to other global competitors,” he asserted during a press conference held at the Ministry of Cooperatives office on Monday (11/11).

The second factor exacerbating the situation is the significantly lower prices of imported milk. Budi pointed out that the Milk Processing Industry (IPS) predominantly imports not fresh milk but rather skimmed or powdered forms. This trend has put local dairy farmers in a precarious position, as the market price for their fresh milk is often undercut.

“It’s important to note that the quality of skim milk cannot compare to fresh cow’s milk, given that it undergoes extensive heating and ultra-processing,” Budi emphasized.

Deputy Minister of Cooperatives Ferry Juliantono elaborated that imported milk is priced between IDR 1,000 to IDR 2,000 per liter cheaper than locally produced milk, pointing to a troubling challenge for domestic farmers. In response, the Ministry of Cooperatives has proposed two essential solutions to safeguard the interests of local dairy producers.

One possible solution is the provision of incentives aimed at empowering farmers to better compete with imported milk. “In contrast, the government may also need to reassess the current framework of import duties, which simply cannot remain at 0 percent,” he added.

Furthermore, Executive Director of the Milk Processing Industry Association (AIPS) Sonny Effendhi noted that quality control has become a significant hindrance to the local milk market as the industry now limits the absorption of domestic milk due to quality concerns.

It has been reported that domestic milk often contains undesirable additives like water and sugar syrup, compromising its integrity.

“Therefore, it fails to meet food safety standards and cannot be accepted,” he asserted. Moreover, efforts are set to be made between industry stakeholders and farmers to enhance the quality of local milk.

“We must eliminate practices such as adding water, cooking oil, sugar syrup, or other non-conforming agents, as such actions could endanger public health,” he stated firmly.

“It is our responsibility to ensure compliance with BPOM standards, which clearly prohibit such additives in milk,” he concluded.

[Gambas:Video CNN]

(fby/agt)
**Interview with Minister of Cooperatives Budi Arie ‍Setiadi: ‍The Dairy Crisis ⁤in Indonesia**

**Editor:** Minister Setiadi, thank you for joining us today. ⁢Indonesia is ⁣facing quite a milk dilemma. Can ⁢you explain what’s causing this sudden⁤ surge⁣ of imported milk in the market?

**Minister Setiadi:** Thank you for having me. The primary issue stems from the exemptions on⁤ import duties, which apply to countries like New Zealand and ‍Australia. They’re ‌benefiting significantly from ⁣our free trade agreement, making their milk products cheaper—around 5% lower than other imports. This ends up undercutting our local dairy farmers ⁣who are struggling to compete.

**Editor:** Interesting! So it sounds like these international​ exporters are really capitalizing on this loophole. What kind of ‌impact is this having​ on domestic milk⁢ producers?

**Minister Setiadi:** It’s quite severe. ⁤Many local farmers⁣ are finding ⁤it hard to sell ⁣their fresh milk at⁤ competitive ⁣prices because they’re being undercut by imported powdered and​ skimmed milk. We need to remember that our ​local dairy farmers produce high-quality products that are essentially being devalued in their own‍ market.

**Editor:** Speaking of quality, there​ seems to be a concern regarding the standard of imported ​milk versus local products. Can you elaborate on that?

**Minister Setiadi:** Absolutely.⁢ It’s important for consumers to be aware that most of the ​imported milk isn’t fresh but rather processed varieties ‍like skimmed or powdered milk. This creates a difference in taste and quality. Our goal should be to ensure that⁤ consumers have⁢ access‌ to genuinely ⁢fresh, high-quality milk straight from local farms.

**Editor:** What solutions are being proposed to address ​this dilemma for both consumers and farmers?

**Minister Setiadi:** We’re proposing two⁤ main solutions: First, ⁢we want⁤ to provide ⁢incentives for local farmers​ to enhance their viability in the market. Second, we’re considering reevaluating ⁢the current 0% import duty on dairy products to create a level playing field for our farmers. It’s vital that we support our local economy ‌and ensure that consumers‌ are ‍getting quality products.

**Editor:** It sounds like there are ⁣several challenges⁣ ahead. Do you believe that these steps ‍will be sufficient to revitalize local dairy production and give farmers a fair chance?

**Minister Setiadi:** I’m hopeful that​ with the right measures, ‍we can create an environment where local farmers can thrive. It’s going to be a ‌process, but ensuring ‍transparency in milk quality and pricing will help restore consumer confidence in​ our⁢ local dairy products.

**Editor:** Thank you for your⁤ insights, Minister⁤ Setiadi. ​It’s clear that Indonesia’s dairy industry is facing a significant challenge, but it ⁣sounds like there are potential paths forward.

**Minister Setiadi:** Thank you for having me. With continued support​ and awareness, I believe we can turn this situation around—one pint at a time!

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