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US government looking at Indonesia's dairy market, Kadin says
Dairy products, especially milk, could be on the menu of renegotiated trade talks with the US, Kadin has said, suggesting that powdered milk imports could be used for the President's free meals program.
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A farmhand feeds cattle on June 22, 2023, at a livestock farm in Sidodadi village, Deli Serdang regency, North Sumatra. (Antara/Yudi)
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he United States is reportedly looking to increase dairy product exports to Indonesia as part of ongoing bilateral trade talks, according to an official from the Indonesian Chamber of Commerce and Industry (Kadin).
Kadin deputy chair Erwin Aksa said the US government was looking to expand exports to the archipelago of its agricultural products including beef and wheat, along with milk.
Erwin suggested it would be more efficient and could cut production costs if the country imported powdered milk from the US like it did with Australia and New Zealand, which currently dominate the domestic dairy market.
“The US wants to enter the Indonesian market because it’s big. The per capita consumption [of milk] is only one drop per person. Imagine how much milk is needed to meet one glass per day per person,” he said on Friday, as quoted by Bisnis.com, during a press briefing on the outcome of Kadin chairman Anindya Bakrie’s visit to the US.
Erwin said the arrangement was being explored to reduce the US trade deficit with Southeast Asia’s largest economy, which totaled US$18 billion last year.
President Donald Trump has cited the US’ large trade deficits with other countries as grounds for imposing double-digit import tariffs on their goods, but later postponed their implementation for 90 days to give affected countries time to negotiate with Washington.
Read also: Govt to import 3 million tonnes of milk for free meal program
