Indonesia's Skim Milk Powder Import Values from 2010-2024

Recent data from the United States Department of Agriculture (USDA) shows that Indonesia imported US$567 million worth of skim milk powder in 2024.

This value represents a 4.86% decrease year-on-year (yoy) from US$596 million in 2023.

Historically, the value of skim milk powder imports has fluctuated over the past decade (2010-2024).

The highest import value was recorded in 2022 at US$860 million, a 44.29% yoy increase. The lowest value was in 2018 at US$323 million, a 6.10% yoy decrease.

According to USDA analysis, dairy products have significant demand among Indonesia's middle and upper classes.

However, current Indonesian milk production remains below national needs. As a result, imports of dairy products have steadily increased since 2015, peaking at 700,000 metric tons (MT) in 2019, a 69% increase compared to 2015.

)

"In 2024, Indonesia's dairy imports reached 610,000 MT, primarily from New Zealand, the United States, and Australia," the USDA wrote in its report, Drivers and Trends of US Agricultural Trade with Indonesia: Opportunities and Challenges, cited on Tuesday, July 22, 2025.

The outbreak of foot-and-mouth disease (FMD) in 2022 disrupted local production and increased Indonesia's reliance on imports. The USDA estimates that approximately 75% of Indonesia's imported dairy products consist of skim milk powder, whey, malt extract products, and lactose.

The USDA details that the United States is among Indonesia's skim milk powder importers, ranking as the second largest importer alongside the major player, New Zealand.

However, the USDA notes that due to the AANZFTA and IA-CEPA agreements, most dairy products from New Zealand and Australia have been exempt from import duties since 2020.

Meanwhile, tariffs on certain dairy products, particularly liquid milk with a fat content below 6% (HS codes 0401.1 and 0401.2), are scheduled to be completely eliminated by 2033.

"Dairy products from the United States are subject to a Most Favored Nation (MFN) import tariff of 5%," the USDA stated.

(Read: Indonesia's 2024 Imported Agricultural Consumer Products: Milk Tops the List)