TEMPO.CO, Jakarta-Deputy Minister of Agriculture Rusman Heriawan admitted that the price of local fresh milk is too cheap. In order to address the issue, Ministry of Agriculture is planning to either provide incentives or establish a base purchase price (HPP) for local fresh milk.

“I think we need to set HPP for milk, though it will not be too high,” said Rusman to reporters in his office on Wednesday, April 24.

Rusman explained that imported milk dominates the national milk market. Low-priced imported milk has forced local fresh milk to compete by setting even lower price, almost as low as the production cost.

"Local milk cannot compete, just like garlic and beef,” he said.

Commenting about the marketing of local milk which is considered to be hihgly dependant on certain milk producers, Rusman stated that the dependency was caused by low national consumption of milk, which is the lowest in Asia.

ARIEF HARIWIBOWO | MUHAMMAD MUHYIDDIN