The government will impose quotas on beef imports to try to safeguard local cattle farmers from a wave of imports from New Zealand, Australia and Brazil, Agriculture Minister Anton Apriyantono says.
He said on Wednesday the import quotas would be made according to demand in the domestic market.
“There will be quotas to control imports. These quotas will be based on our needs,” he told The Jakarta Post after an opening ceremony of the annual agriculture exhibition Agrinex Expo 2009.
Anton was responding to a question on the future prospects of four million local beef cattle farmers when the country starts importing beef from Brazil and increasing the beef imports from New Zealand and Australia under the ASEAN (Association of Southeast Asia Nation) free trade deal with Australia and New Zealand, agreed recently.
The country plans soon this year to expand its sources of imported beef to include Brazil so as to supply the domestic market with imported beef at competitive prices.
Anton said he would sign a decree “soon” to legalize beef imports from Brazil after receiving a notification of approval from the World Trade Organization (WTO) last week.
Indonesia previously proposed to the WTO so that it should be allowed to choose beef import sources by zone, not by country, due to the mouth and foot disease issue.
Speculation is rife that Australia and New Zealand opposed Indonesia’s decision to import beef from Brazil, which can challenge their dominance in the local business.
However, Anton said no countries, including Australia and New Zealand, had complained against the WTO’s approval of Indonesia’s proposed notification.
Indonesia largely imports beef from Australia and New Zealand.
According to the Agriculture Ministry, the country consumed about 380,000 tons of meat and carcasses last year.
Local producers supplied 273,000 tons, or 72 percent of the total, while imports accounted for 107,000 tons or 28 percent (including live cattle), mostly from Australia, New Zealand and the United States.
Under the ASEAN-Australia-New Zealand FTA, Indonesia will completely slash its import duties on four beef products by 2020 and on seven dairy products between 2017 and 2019.
Those tariffs currently average 5 percent.
Beef importing business practices have been rather murky with numerous vested interests backed by top government officials reportedly working together to maintain their advantage in the huge Indonesian market of 230 million people.
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