Jakarta, Feb 7 (ANTARA) - Amid alleged bribery scandal on beef import,
the price of beef now in Indonesia, a country of about 240 million, has
hit the highest rate in the world, reaching US$9.76 per kg.
"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 said on Tuesday.
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.
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.
However, Agriculture Minister denied a report which said that the price
of beef in Indonesia was the highest one in the world. Yet he
acknowledged price in the capital city of Jakarta was relatively high.
"It
is not true if it is said that beef price in Indonesia is the highest
in the world. Beef has different kinds of quality. There is beef with
regular quality or that with the best one and has a high price. The one
which is sold at Rp90 thousand (US$9.33) per kg has the best quality,
for the production of, for example, steak. We agree that this quality
beef is expensive," the minister said.
Therefore, the minister called on beef traders not to capitalize on the
present high price of beef to reap excessive benefits.
"Actually, the benefit margin of traders/breeders relatively is already
high. The normal price of beef is about Rp60,000-Rp70,000
(US$6.22-US$7.26) per kg. I appeal to traders/breeders not to set too
high margins," Suswono said after a coordination meeting at the office
the coordinating minister for economic affairs in Jakarta on Tuesday.
He said that the high price of beef only occurred in Jakarta
and affects prices in its satellite towns of Bogor, Depok, Tangerang
and Bekasi (Bodetakbek). This was caused by the limited supply of beef
to Jakarta.
Suswono said that the price meat in Jakarta was skyrocketing as a
result of the high consumption of beef in the capital. This is not the
case in the regions.
"Beef in Jakarta is the most expensive because beef consumption by
Jakartans is high. As a result, meat consumption is only among those in
the middle and upper classes of people," the minister said.
In other regions, the people turned to chickens whose prices were lower, when the prices of beef were skyrocketing.
"For this purpose, and for lowering the beef prices, the ministry of
agriculture appealed to cattle ranch centers in the regions to supply
beef to the capital," Suswono said.
Earlier, Deputy Trade Minister Bayu Krisnamurthi said last week that
the high price of beef in Jakarta indicated the interruption of supplies
of meat to Jakarta.
"I do not want to debate about a survey result saying that beef stocks
are enough, yet I want to speak about facts that the prices of beef in
the past three months have never shown a downward trend. If this trend
is left to continue until the fasting month or the post-fasting
festivities, I think beef price would hit the Rp120,000 (US$12.45) per
kg level. And this would be beyond the financial reaches of most
consumers in the country," the deputy trade minister said.
In the meantime, the Indonesian Buffalo and Cow Breeders Association
(PPSKI) said that one of the efforts that could be taken to resolve the
problem of high beef price was to set up cooperatives that would group
individual and traditional ranchers.
"The long chains of beef trading could be shortened with pooling
individual breeders in cooperatives," Teguh Boediyana, the general
chairman of PPSKI, said on Monday.
PPSKI is projecting to produce some 17 to 18 million buffalos and cows
up to 2014. Of the figure, some 15 million would be designed as
slaughter cows.
He said that Indonesian individual breeders whose numbers reached six
million breeders would become strong if they were united in a business
organization like cooperatives. Their meat could be marketed in an
integrated way with a competitive price.
"So far, meat collector traders in the regions play a dominant role,
yet the benefit for breeders is rather small. After all, cow breeders in
the regions lack transportation facilities. This caused the bargaining
power of cow farmers to become low," he said.
He said that cattle transportation system could also be integrated to
supply meat to potential markets such as Jakarta, West Java and Banten,
which were the biggest meat consumer provinces in Indonesia.
After all, with establishing cooperatives, monopoly, conspiracy and
collusion with big traders in the meat trading could be avoided.
According to Coordinator of the Indonesian Anti-Corruption Society
(MAKI) Boyamin Saiman, the increase in the beef price of late was
designed by traders by conspiring in creating price hikes.
"Conspiracy among meat traders has caused beef price to shoot up. This
is an old practice by trade brokers in the fields and all already know
it," Bonyamin said. He believed importers had arranged a scheme in such a
way that prices would increase and benefit them.
He said that they way they used was to monopolize beef trading through cooperation with the government.
"For example, they hold their stocks in the warehouses for a certain
time before they release it in the market after prices were already sky
rocketing," he said.
Bonyamin said that big traders and individual rulers often held
lobbyings to smooth monopoly practices, of course there would be a
commitment that would benefit both sides.
"In this respect, many political parties try to put a ministry under
their clutches - the aim is to ensure logistics supplies for the
parties," he said.
Therefore, Boyamin urged the Corruption Eradication (KPK) to examine
the agriculture minister because the minister had authority on beef
import in Indonesia.
Moreover, the KPK is now investigating an alleged bribery case where a
beef importer company had allegedly tried to bribe a political party
chief so that it would be allowed to import beef.
The KPK has arrested Juard Effendi, Arya Abdi Effendi (both are
directors of beef importer PT Indoguna Utama), Luthfi Hasan Ishaaq (a
lawmaker and president of the Prosperous Justice Party /PKS) and his
close friend Ahmad Fathanah.
The anti-graft body also confiscated as evidence a cash of Rp1 billion,
put in black crinkle paper bag. The money was a down payment of a
commitment fee worth Rp40 billion pledged for the issuance of a permit
to import 8,000 tons of beef by PT Indoguna Utama.
Juard dan Arya were arrested by the KPK on Tuesday (Jan 29) at Arya's
house in Cakung, East Jakarta after handing over Rp1 billion to Ahmad
Fathanah at the PT Indoguna Utama building. Ahmad Fathanah himself was
arrested at Le Meredien Hotel in Jakarta.
KPK
spokesman Johan Budi said KPK had evidence the money was to be given to
Luthfi, who denied the allegation. Luthfi Hasan Ishaaq officially
announced his resignation two days after his arrest on graft charges.
In a press conference Luthfi said," it is part of political struggle.
PKS must continue to grow with or without me." "I am just facing a
legal case and I would certainly need time to follow the process to
prove whether or not I am guilty and this problem will be part of PKS'
struggle," he said. ***3***
(T.A. Abdussalam/A/A. Abdussalam/A/O. Tamindael) 07-02-2013 13:19:0 |
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