Report for International Finance Corporation on Indonesia dairy industry development : final report

The International Finance Corporation (IFC) promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve people’s lives. Agriculture industry development is a priority for the Indonesian Government as it aims to achieve self-sufficiency in key agricultural sectors. Dairy is an important industry sub sector with over 100,000 Indonesian dairy farmers producing close to 930 million liters of milk. The Indonesian Government has committed resources to support the development of Indonesia’s dairy industry with the aim to achieve 50 percent self-sufficiency by 2014. Investing in the dairy industry sector in Indonesia can have significant development impact and create employment opportunities throughout the supply chain. IFC would like to explore the opportunities to be an investor in Indonesia’s dairy industry. Given the changing and growing dairy sector, IFC wishes to obtain more current data on the dairy industry’s value chain, its growth and investment opportunities, and recommend actions to consider for operating in the sub-sector. The overall objective is to profile the Indonesian dairy farm and dairy processing industry and to identify opportunities and roles for IFC to promote a sustainable and inclusive dairy industry in Indonesia.