Francezka Nangoy – Beef may become increasingly scarce next month as the government rushes its efforts to reach self-sufficiency, the Indonesian Meat Importers Association said on Tuesday.
In February last year, the Agriculture Ministry instituted a program to make Indonesia self-sufficient in beef by 2014. As part of the effort, the government dramatically cut this year's quota for beef imports to 50,000 tons, after the country shipped in 120,000 tons in 2010.
Thomas Sembiring, chairman of the association, also known as Aspidi, said by cutting the import quota by almost 60 percent without first securing the domestic supply, the government seems to be rushing and forcing the self-sufficiency issue.
"It's just a political move. By reporting that the import quota was cut that much, they're trying to make it seem like the program is working already," Thomas told the Jakarta Globe. By his estimates, "If there are no more imports coming [this month], in April beef stocks will be empty."
One of the program's main objectives is to cut beef imports to 10.4 percent of the total by 2014.
Thomas said the Directorate General of Animal Husbandry had issued import licenses for 24,500 tons of beef in the first half of the year. According to the ministry's Quarantine Agency, 18,000 tons had arrived by the end of February, but Thomas said that would likely be sold out by the end of this month, creating scarcity.
"Even if some importers can get a license by April, it takes about three to five weeks to get the meat into Indonesia," he said.
Thomas also expressed doubts about the government's self-sufficiency program.
"The problem in Indonesia is it's so hard to find the actual data. The government can just say that the supply is sufficient, and we have to obey," he complained.
"The import trend is increasing. Today, imports make up about 45 to 50 percent of total meat consumption." During a seminar held by the Indonesian Young Entrepreneurs Association (Hipmi) on Monday, Thomas said that in 2000, Indonesia imported about 20 percent of its total beef consumption. That increased to 25 percent in 2005, 35 percent in 2008 and 44 percent in 2010.
While imports soared, Directorate General of Animal Husbandry data showed beef production only increased 12.8 percent in five years, from 358,704 tons in 2005 to 404,518 tons in 2009.
The self-sufficiency program is based on the beef cattle population rising from 12.3 million in 2009 to 14.2 million by 2014.
Consumers should expect higher prices, Thomas said. "This will be reflected in the meat price at the market, then restaurant and food processing businesses."
In its March 14 issue, Tempo Weekly said the quota cut could result in unfair competition. It reported that four beef-importing firms owned by Basuki Hariman had more than the average import quota for similar companies.
The report also said 143 containers with 2,750 tons of meat were waiting in Tanjung Priok port.
According to the report, Basuki's close relationship with members of the Prosperous Justice Party (PKS), such as Tafakur Rozak Soedjo and Suripto, allowed him access to several top officials in the ministry, which is led by PKS member Suswono.
Prabowo Respatiyo Caturroso, director general of livestock at the Agriculture Ministry, did not return calls from the Jakarta Globe.