Indonesia’s dairy industry and dairy products industry is undergoing a boom with market demand rising by over 10% on an annual basis for the past ten years due to changing consumer habits and population growth (Nielson). While not a traditional part of the Asian diet, dairy products such as milk in fresh and powdered form as well as cheese and yoghurt are gaining popularity to become a regular feature on the shopping list for middle income families. Indonesia’s estimated per capita milk consumption is only 11.7 litres per annum which is significantly lower than 22 litres in the Philippines and 31 litres per capita in Thailand. Indonesia also has the highest rate of growth in milk consumption in the ASEAN at 4.8% per year over the period 2006-2010 (International Finance Corporation & More Link Asia Pacific). This is presenting exciting opportunities for the private sector in both the upstream and downstream segments to make up the shortfall in milk supply as well to introduce new products that appeal to the growing health consciousness of the market.