December 3, 2012

Coordinating Economy Minister Hatta Radjasa said that the price hike of beef meat in the market was caused by poor business management, transportation systems in delivering the beef to the consumers and increasing beef consumption among the public.

"Beef consumption has increased to 2.3 kilogrammes per capita per year from 1.9 kilogrammes," the minister said in his office.

He said that among the efforts to build new business system is improving domestic beef market mechanism, closer coordination with slaughter houses, suppliers, distributors and markets.

"It is the transportation which makes beef delivery to the consumers untimely. It has to be fixed," the minister added.

The beef shortages in national market occurred in the last few weeks had pushed beef price to three times higher than normal price of IDR30,000 (US$3) per kilogramme to IDR90, 000 (US$9.4).

According to the data released by the farming ministry, Indonesia's beef stock in December this year would reach 17,976 tonnes, including 3,753 tonnes imported. In January next year it would be 16,550 tonnes. This is considered to be sufficient to meet people's need in those periods.

To assure the sufficiency of beef in national market, Hatta said that government would allow importing beef up to 80,000 tonnes throughout next year. That figure accounts for 15% of national beef needs. The imported beef would be limited to consumption in restaurants or being sold in supermarkets for middle class consumers, he said.