February 18, 2013

Indonesia to use tender system to prevent beef import fraud

Indonesia may use tender system in order to avoid various forms of fraudulent practices in the importation of beef.

The system is considered to be more transparent and open, and promoting the public interest in obtaining beef at lower prices.

This was said by the Minister of Trade Gita Wirjawan, during a visit to Reuters, Friday (Feb 15).

"So no need to use a quota system and designation. Perform a tender system that is completely open and transparent. Importers who can provide the lowest price and quality meats, will be elected," he said.

According to him, the tender put forward the interests of the people, because the price of meat will be more affordable. The system also avoids collusion, because it is done in a transparent and open manner.

"The system can be tendered online, so there will be no face to face meetings between officials and businessmen," Gita said.

He also said that the price of beef in the country is still quite high at around IDR85,000-90,000 (US$9-9.3) per kilogramme.

This price is much higher than the price of meat in neighbouring countries. Without government intervention, the price of meat will not go down and can go even higher.