Belarus Secures $76 Million Dairy Supply Deal for Indonesia's Free Meal Initiative
Belarusian enterprises have signed contracts worth $76 million to supply milk powder to Indonesia, with supplies designated for the country's flagship Free Nutritious Meal program targeting 82 million beneficiaries.
Belarus Secures $76 Million Dairy Supply Deal for Indonesia's Free Meal Initiative
Belarusian enterprises have secured $76 million in contracts to supply milk powder to Indonesia, with a significant portion earmarked for the government's Free Nutritious Meal (MBG) program, Belarusian Deputy Agriculture Minister Alexander Yakovchits announced Tuesday at the Food & Hospitality Indonesia (FHI) 2026 expo in Jakarta.
The dairy supply agreements were finalized during Belarusian President Aleksandr Lukashenko's state visit to Indonesia on July 1–2, his second visit to the country in 13 years. The contracts represent a strategic partnership to address Indonesia's substantial dairy shortage as the nation rolls out its ambitious nutritional initiative.
"During our head of state's recent visit to Indonesia, several contracts were signed," Yakovchits told reporters at the Belarus Pavilion during the four-day exhibition at Jakarta International Expo. "To our knowledge, a portion of the supplies from these contracts will be used for the MBG program."
Indonesia's Free Nutritious Meal Program
The Free Nutritious Meal program, launched in January 2025 as a flagship initiative of President Prabowo Subianto, has received Rp335 trillion (approximately $19.8 billion) in government funding for 2026. The program targets roughly 82 million beneficiaries, including students, pregnant women, breastfeeding mothers, and toddlers, in an effort to combat stunting, a malnutrition-related condition affecting approximately one-fifth of Indonesian children under five years old.
Belarus has already begun shipping skim milk powder under an initial agreement and is currently executing a second contract. Minsk aims to export a total of 20,000 metric tons of milk powder to Indonesia by the end of 2026.
Addressing Indonesia's Dairy Shortage
The dairy partnership addresses a critical supply gap in Indonesia, where domestic milk production meets only 20 to 25 percent of total consumption. Indonesia does not produce skim milk powder domestically, making imports essential for the MBG program and the broader dairy market. Imported skim milk powder is typically recombined with local milk to produce reconstituted milk, a more affordable alternative to fresh pasteurized products.
"We observe that Indonesia is currently facing a shortage of dairy products," Yakovchits stated. "We are confident in our ability to foster cooperation and assist in this sector, given our extensive production capacity."
Belarus's dairy sector has expanded significantly, with domestic production reaching 9.25 million tons in 2025 and projected to climb to 12 million tons this year, positioning the Eastern European nation as a viable supplier for Indonesia's growing needs.
Broader Economic Cooperation
The dairy deals were preceded by a bilateral business forum on June 30, where Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed Jakarta was exploring Belarusian dairy imports to support the MBG initiative. The forum generated approximately $500 million in potential business agreements.
Beyond immediate food supplies, the two nations are pursuing broader agricultural cooperation encompassing technology transfers, machinery development, and local assembly facilities. During Lukashenko's visit, the countries launched a Roadmap for Strengthening Indonesia-Belarus Cooperation 2026–2030, establishing a framework for collaboration in trade, manufacturing, agriculture, and food security over the next five years.
The strengthening relationship has been further facilitated by the Free Trade Agreement between Indonesia and the Eurasian Economic Union, signed on December 21, 2025. Belarus has completed ratification of the agreement, while Indonesia is currently processing its ratification.
According to Indonesian Deputy Trade Minister Dyah Roro Esti, two-way trade between Indonesia and Belarus currently stands at approximately $221 million, though broader bilateral trade including services exceeded $600 million in 2025. Belarusian officials report continued positive momentum in 2026, with predominant growth in Belarusian exports to Indonesia.
The dairy supply agreements represent a significant component of the expanding economic relationship between the two countries, as Indonesia seeks reliable international partners to ensure the success of its nationwide nutritional program.