June 2, 2016

Indonesia sets beef import quota at 27,400 tonnes ahead of Ramadhan

Indonesia's beef import quota is 27,400 tonnes, the country's Trade Ministry said, a volume bigger than the 10,000 tonnes amount as suggested by the Agriculture Ministry.

The quota is purposed to control rising prices in domestic markets, a measure based on President Joko Widodo's call to cut down beef prices from RP110,000/kg (US$8) to RP80,000/kg (US$5.86) in the days leading to Ramadhan.

Trade Minister Thomas Lembong said the State Logistics Agency ( Bulog ) held an import quota for 10,000 tonnes of beef, state-owned firm Berdikari at 5,000 tonnes, Jakarta administration-owned firm Darmajaya at 500 tonnes, with the remainder for private importers.

Beef will be delivered from "various countries", the minister commented without mentioning the names of the countries involved. However, Lembong added that Indonesia intends to expand its beef sources other than Australia.

Along with Idul Fitri, another important Muslim event in Indonesia, Ramadhan is one of those periods when demand for staple foods - including beef-and other products usually increase.

Seeking to support favorable prices for consumers as well as improving farmers' welfare, Indonesia established the minimum selling prices for farmers. 

By the end of the first week of Ramadhan, the government hopes to see a drop in food prices, State-Owned Enterprises Minister Rini Soemarno remarked.

- The Jakarta Post