Indonesian Political, Business & Finance News

Importers Slam Beef Debacle at Tanjung Priok

| | Source: JG
An estimated 200 containers of frozen beef imported from Australia and New Zealand have been stuck in Tanjung Priok port for nearly two weeks for reasons that nobody appears able to define, frustrated importers have complained.

“The director general of livestock at the Ministry of Agriculture said the beef was detained because of questions raised by the Indonesian Ulema Council’s Food, Drug and Cosmetics Assessment Institute [LP-POM MUI] over whether it was halal,” explained Thomas Sembiring, the chairman of the Indonesian Meat Importers Association (Aspidi).

“From the very start after I found out that the containers had been detained, I’ve been questioning the ministry but I’ve never received any clear answers,” Sembiring said. “Sometimes they say it’s because of bird flu, other times they say it’s on account of its halal status or for food security reasons.”

With each container holding 17 tons of frozen beef, the potential loss for importers is estimated to reach Rp 136 billion ($13.5 million), not including warehousing fees and income and other taxes.

About 40 percent of Indonesia’s 400,000 tons of beef consumed each month is imported.

After 12 days without getting an answer, Sembiring finally received a letter from the ministry saying that the meat had been detained because it wasn’t halal - but then on the same day, he received another official letter from the Indonesian Ulema Council (MUI), saying it was indeed halal, or sanctioned for Muslims to eat.

“I don’t know what the problem is, but we have asked the LP-POM MUI about this and they said they hadn’t issued any instructions about Australian or New Zealand meat products as the existing halal certificates are valid until October 1,” he said.

“Such lack of coordination - how come I received two different letters the same day?” he said.

“Eighty percent of the detained meat is intended for markets in Jakarta, Banten and West Java,” Sembiring said, adding that he is concerned that the impasse will result in shortages in those areas.

All of the relevant parties are scheduled to hold a meeting at the offices of the Coordinating Ministry for the Economy on Thursday in an effort to break the logjam.

According to Sembiring, Bayu Krishnamurti, a deputy to the coordinating minister, said the government would discuss the matter on Wednesday at the ministry’s offices.

Tjeppy Sudjana, the Agriculture Ministry’s director general of livestock, couldn’t confirm if the meat rumors were true.

“Please come to the meeting at Lapangan Banteng [where the ministry’s offices are located], and we will talk further about the imported meat,” Tjeppy said in an text message.

Tanjung Priok, the country’s main gateway for exports and imports, has long been a byword for inefficiency and mismanagement, with corruption involving customs, police and port officials reported to be endemic.
Tags: business
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