Vietnam's TH Group Plans 15,000-Hectare Dairy Farm Investment in Central Sulawesi
BANDUNG, investortrust.id – The Land Bank Agency has unveiled plans for Vietnam’s major dairy company, TH Group, to invest in a massive dairy farm complex in the Napu Valley, Poso Regency, Central Sulawesi.
Hakiki Sudrajat, deputy for land utilization and business cooperation at the agency, revealed that the project would span 15,000 hectares and accommodate 200,000 dairy cows. “They are planning a 15,000-hectare site with 200,000 cows,” Hakiki stated during the “2024 Performance and 2025 Outlook” media gathering in Bandung on Friday evening, Jan. 17, 2025.
In addition to the dairy farm, TH Group plans to establish a milk processing facility within the expansive site. Hakiki noted that a memorandum of understanding (MoU) is scheduled for signing in March 2025.
“Their plan includes a factory, and we’ve already prepared the site plan. They have visited the location twice, and hopefully, the MoU will be signed in March. Initially, 3,000 hectares will be allocated, serving as the basis for the agreement with Vietnam,” Hakiki explained.
Following the initial 3,000 hectares, the Land Bank Agency will provide an additional 1,500 hectares for growing animal feed crops. The full 15,000-hectare allocation will be handed over in phases.
This investment aligns with Indonesia’s agricultural goals, as the Ministry of Agriculture is working to boost the dairy sector to support the president’s free milk program and achieve self-sufficiency in milk production by 2029.
Minister of Agriculture Andi Amran Sulaiman confirmed that the government is pursuing partnerships with TH Group to develop the dairy industry on Land Bank-managed property in Napu Valley. The initiative stems from Amran’s recent trip to Vietnam, during which discussions with investors progressed significantly.
“Following directives from the President and President-elect, we aim to build dairy farms to produce milk here,” Amran stated.
The project is expected to produce 1.8 million tons of milk annually within 3–5 years, representing nearly half of Indonesia’s annual milk imports of 3.7 million tons.
“If successful, this initiative could significantly reduce imports. We urge the people of Poso and Central Sulawesi to support and oversee this investment,” Amran added.
The partnership marks a strategic step toward reducing reliance on imports while fostering regional economic growth through sustainable dairy farming practices.