Government Says Rising Global Oil Prices Drive Up Beef Costs
Trade Minister Budi Santoso has said that rising logistics costs due to high global oil prices are among the factors driving up domestic beef prices.
Budi said the increase in import costs is one of the obstacles faced by beef importers. One of the cost components that has risen is logistics and transportation, in line with the increase in global oil prices.
“So indeed one of the factors is the cost, the import costs that have risen. So now some are looking for beef products whose costs are not too expensive,” Budi said in Jakarta on Wednesday (12/8).
According to him, this situation has led some importers to continue seeking alternative beef supply sources from other countries with lower procurement and logistics costs.
On the other hand, Budi revealed that beef import realisation is currently still relatively low, averaging around 40 percent of the quota granted by the government through the commodity balance.
For this reason, the Ministry of Trade is asking importers to immediately realise the import quotas they have obtained by seeking overseas suppliers offering more competitive prices.
“So we are asking them to immediately seek sources or suppliers abroad whose prices are certainly better, so that they can help bring down prices in the domestic market,” he explained.
In addition to beef, the government is also encouraging the acceleration of buffalo meat import realisation. According to him, buffalo meat can serve as an alternative supply because its price is relatively cheap.
“We actually have several options, but so far most has come from Australia. But we are trying to source from several countries that can supply, including the fact that we also actually have a quota for buffalo meat,” Budi said.
He added that buffalo meat import realisation also remains low. The government will strive to ensure that all meat import quotas, both beef and buffalo, are realised promptly to help maintain supply availability and price stability in the domestic market.
Head of Statistics Indonesia (BPS) Amalia Adininggar Widyasanti said the national average price of beef was above the consumer-level reference selling price (HAP) in the first week of August 2026.
During the Regional Inflation Coordination Meeting, monitored online in Jakarta on Monday, she said the national average beef price in the first week of August 2026 reached Rp143,737 per kilogram, while the HAP was set at Rp140,000 per kilogram.
According to her, this situation warrants attention even though the number of districts/cities experiencing an increase in the beef Price Development Index (IPH) was only 56 regions.
In addition to the national price condition, Amalia said there are a number of districts/cities that recorded beef prices above the HAP while still experiencing an increase in the IPH.
For example, in Kubu Raya Regency, West Kalimantan, beef prices were already 17.86 percent above the HAP. However, in that region, the beef IPH also continued to rise by 7.51 percent, bringing the average price to Rp165,000 per kilogram.