Jakarta, Feb 26 (ANTARA) - At least four ministers, two deputy
ministers and the state logistics board (Bulog) head met on Monday to
discuss efforts of overcoming soaring beef prices in the domestic
market.
The four ministers were Chief Economic Minister Hatta Rajasa, Trade
Minister Gita Wirjawan, Agriculture Minister Suswono and State-owned
Enterprise Minister Dahlan Iskan.
The meeting was also attended by Bulog head Sutarto Alimoeso and two
other deputy ministers of the ministry of finance and the ministry of
public works.
"We met to discuss the problem of soaring beef prices. I think it is a
simple problem: a problem of supply and demand. My concern is to
maintain price stability. The price now is increasing from the previous
Rp60,000 (US$6.2) per kg to RpRp95,000 (US$9.8) per kg," Trade Minister
Gita Wirjawan said after the meeting.
Based on data available at the Central Bureau of Statistics (BPS), the
beef price in the fourth week of January 2013 was recorded at Rp90,000
(US$9.33) per kg.
This price has been in that level since the first week of December
2012. It was said that the beef price in Indonesia now was the most
expensive in the world.
The World Bank recorded that the average beef price per kg in Indonesia
in December 2012 was US$9.76 while prices per kg in Malaysia was
US$4.3, in Thailand US$4.2, In Australia US$4.2, in Japan US$3.9, in
Germany US$4.3 and in India US$7.4.
"Beef price in the market in the last three months has remained high,
even it continues to increase. If this continues to take place without
efforts to lower it, I am afraid it will reach Rp120 thousand (US$12.45)
per kg. This rate is beyond the financial reach of consumers," Deputy
Trade Minister Bayu Krisnamurthi meanwhile said two weeks ago ( Feb.5).
The soaring prices were blamed on the lack of supply in the domestic market.
To overcome the lack of supply, the government will accelerate supply
and provide enough transportation facilities from cattle producing
centers to consuming regions.
Besides, it will also put in order the mechanism of beef importation.
"We will soon stabilize prices by speeding up beef supply," Hatta Rajasa
told a press conference at his office on Monday.
The chief economic minister said the government through trade ministry
officials would visit slaughter houses to check the number of live
cattle and the volume of frozen beef stock. Guaranteed availability of
supply would help drive down prices, he said.
"There are 400 abattoirs. We can also see the volumes of supply and
demand through an online system. Supply to Jakarta and West Java would
be accelerated. The supply would be in the form of frozen beef and live
cattle," the minister said.
For this, the transportation mechanism will be arranged. He said that
the ministry of agriculture would cooperate with state-owned railway
company PT Kereta Api and state-owned shipping firm PT Pelayaran
Nusantara Indonesia (Pelni) for cattle transportation to Jakarta.
"The
agriculture ministry will accelerate beef supply from the Indonesian
eastern region with a special ship and train. Next April, trains can
transport frozen meat and live cattle from Surabaya (East Java) to
Jakarta," Hatta said.
The chief economic minister said that Pelni had prepared ships to transport cows from East and West Nusa Tenggara provinces.
In an effort to increase and ease beef distribution, the government will also provide discount for beef transportation.
"Beginning March 1, the government will give discount for beef
distribution from production centers to all areas in Indonesia,"
Minister of Agriculture Suswono.
The policy is expected to reduce beef prices so that local beef will be
able to compete with imported one in the market. According to the
minister, the local beef is more expensive than the imported one due to
extra distribution costs.
"It is a kind of price discount given to the transportation of cattle
from Nusa Tenggara provinces or of beef from East Java and Central Java
by trains or by Merapati airplanes, to other areas," the agriculture
minister said.
He said that local beef prices could not compete in the domestic market
with imported beef because freight costs from Australia were lower than
the transportation costs from Nusa Tenggara provinces.
Thus, by easing beef transportation, local beef would be able to
compete with local meat. Cattle breeders at home would also feel they
were protected because they obtained logistics service facilities.
"If this is running well, our local meat will compete with imported one," Suswono said.
The minister said that of the domestic need for meat which reached 549
thousand tons per annum, about 85 percent were expected to be met by
local cattle. Ranchers should therefore increase the number of their
cattle which now reached about 14.8 million cows.
Besides supply from domestic sources, beef needs would also be met by
imports. For this, importation mechanism would be arranged.
It would be decided through an auction and transparent mechanism. The
importation would be open to credible but registered importers at the
trade ministry.
"The beef import mechanism will be regulated by the agriculture minister," Hatta said.
According to Trade Minister Gita Wirjawan, the government plans to
introduce an auction system for importation of beef to assure
transparency and the best price for consumers.
"If we wish to import beef its process must be transparent and I have
proposed an auction system for it and the proposal has been agreed by
the coordinating minister for economic affairs and the minister of
agriculture," Gita Wirjawan said.
If the auction process is carried out well it will produce a good
process which is accountable and the consumers will get the best price.
"We (the trade ministry) have been assigned to finalize the framework
and formula in one or two weeks' time," he said.
He said he would continue to maintain certain parts of the current
system but he wished its process could be accelerated.
"I do not like a complicated process. The concept used should be an
integrated one-stop service," the trade minister said.***3***
(T.A014/f001)
(T.A014/A/A. Abdussalam/F. Assegaf) 26-02-2013 12:55: |
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