September 2, 2008

Indonesia is ready to export beef to Middle Eastern countries due to a high beef demand in the United Arab Emirates (UAE) and Saudi Arabia, according to agriculture minister Anton Apriyantono.

The UAE and Saudi Arabia will invest in cattle fattening and yearlings in Indonesia. Anton said the two countries have addressed their beef demands to the Indonesian Producers and Feedlot Association (Apfindo).

Livestock director-general Tjeppy Daradjatun said that the Middle East prefers Indonesian beef due to assured halal quality, and that the government has offered locations in Sumatra and Merauke for cattle fattening and yearlings.

To assist local businessmen in cattle yearling, the government will provide a subsidy in the form of interest, allowing them to pay only 4-5 percent of interest to banks or financial institutions, according to Anton.

Apfindo chairman Teguh Boediyana said he welcomed investors in cattle yearlings as Indonesia still lacks beef supplies and therefore needs to keep importing.

However, data from the Beef Importers Association (Aspidi) shows that Indonesian cattle and beef imports have increased 35 percent this year.

Aspidi chairman Thomas Sembiring said that even with investment from the Middle East, the benefits could only be enjoyed 4-5 years later. He suggested that investors should pour their money into the cultivation sector because Indonesia is already capable of developing its cattle fattening.

Thomas also said he felt the export-oriented policy was not relevant and the government should focus more on meeting domestic demands and cutting beef imports.