ID2025-0044 – Published on November 21, 2025
Indonesia’s milk production increased to 722,883 metric tons in 2025, with record production projected for 2026, due to partial recovery from the 2023 Foot and Mouth Disease outbreak combined with significant cattle imports and improved management in modern dairy farms. This growth creates opportunities for U.S. live cattle, genetics, and feed ingredients. However, reduced middle class purchasing power and milk being optional in the Free Nutritious Meals Program resulted in consumption of milk products growing at a lower rate than expected in 2025. Meanwhile, imports of skim milk powder, whey, and lactose reduced significantly, replaced by increased imports of full-fat milk and whole milk powder, and increased availability of local milk. These substitutions significantly reduced U.S. skim milk powder, whey, and lactose exports, which remain subject to the 5 percent duty and face increased price competition. Meanwhile, U.S. cheese exports to Indonesia increased by 34 percent from January to August 2025.