Business people fear beef crisis in Jakarta

JAKARTA. The Jakarta meat industry and associated businesses have raised concerns over a possible crisis in the supply of beef in the city following the central government’s decision to reduce beef imports.

Sarman Simanjorang, chairman of the City Meat Committee and a member of the local branch of the Indonesian Chamber of Commerce and Industry (Kadin), said that local businesses had begun to feel the effect of the import cut.

“Beef prices have begun to soar, reaching between Rp 75,000 and Rp 80,000 per kilogram [US$8.8]. Signs of scarcity are worrying,” Sarman said.

The central government has announced reduced cattle and beef imports by 20 percent this year.

As a result, the import of beef will decline from 90,000 tons last year to a targeted amount of 34,000 tons this year.

The Agriculture Ministry said that in previous years, domestic breeders had been pressured to lower their prices for cattle. The new policy is hoped to allow breeders to enjoy a better price for their cattle.

Sarman said that the meat industry in the capital alone required between 50,000 and 60,000 tons of meat.

“The meat industry and meat-related business in Jakarta rely on their supply from imported beef. Around 90 percent of the supply is imported,” he said.

Sarman said that the tens of thousands of people involved in the industry and businesses would be hard hit by the crisis.

“From the beef industry, to meat vendors, bakso [meatball] sellers, caterers, hotels and restaurants will bear the burden,” he said.

Sarman is calling on the city administration and the central government to take measures to prevent the crisis quickly.

“The planned fuel price increase in April will only worsen the situation,” he said.

Satria Hamid Ahmadi, deputy secretary-general of the Association of Indonesian Retail Business (Aprindo), said that retailer giants Carrefour, Lottemart, Hypermart, Giant, Hero and Alfa had begun feeling the pinch.

“In the past nine months, we have been finding difficulties fulfilling our beef needs,” Satria said.

He said retailers were trying to be ahead of each other in getting available meat supply.

Indonesia’s frozen meat imports were 90,000 tons in 2011, down from 120,000 tons in 2010, according to the Agriculture Ministry.

The government also said it would reduce live cattle imports to 280,000 in 2012, down from 400,000 in 2011 and 600,000 in 2010.

Indonesia reduced its live cattle imports by nearly a half in 2011 due to an increase in local supply,
according to officials.

The ministry announced that domestic cattle growers produced 14.7 million head of livestock last year, more than the nation’s target of 14.5 million for 2014.

Meat import reduction would be further expanded in the following year, targeting 13 percent of total demand in 2013 and 10 percent in 2014.

Indonesia currently imports live cattle from Australia, New Zealand, the US and Canada.

Australia suspended live cattle exports to Indonesia in May last year in the wake of video evidence showing the mistreatment of animals in Indonesian abattoirs. Live cattle exports to Indonesia resumed in July after an agreement was reached that paved the way for new standards. (Andreas D. Arditya/ The Jakarta Post)