RI given discount on cattle imports
JAKARTA (JP): The country will import 30,000 beef cattle at discounted prices from Western Australia to meet expected high demand over Christmas, New Year's and the Moslem Idul Fitri festivities in January.
Director General of Financing and Development Services Deswandhy Agusman said on Tuesday the cattle would be imported by private companies and cooperatives.
The import, at a 30 percent price discount, is possible due to assistance of the Western Australian government, he added.
Total import cost will range between Rp 30 billion and Rp 35 billion (US$4.3 million).
"Both the Western Australian government and the Indonesian government act as trade facilitators in the deal. The Western Australian government has arranged for importers to get a 30 percent price discount," Deswandhy said.
The first shipment of 1,200 animals is scheduled to arrive at Tanjung Perrak harbor in Surabaya on Nov. 18.
"We have anticipated the increasing demand during the Christmas, New Year and Idul Fitri holidays, despite the decline in people's purchasing power," he told reporters.
The Ministry of Agriculture estimates that Indonesia will need 59,028 tons of fresh beef, 1,250 tons of frozen meat, 80,650 tons of chicken and 71,383 tons of eggs during the Christmas, New Year's holidays and Idul Fitri festivities.
Deswandhy said Indonesia had earlier proposed for the Australian government to subsidize the beef cattle exports to Indonesia in the wake of the sharp depreciation of the rupiah to the U.S. dollar. That proposal was rejected. The country could not subsidize the imports due to the country's financial difficulties.
Minister of Agriculture Soleh Solahuddin said in September that the Australian government planned to subsidize the exchange rate at Rp 6,000 per U.S dollar for the beef cattle import.
Minister of Trade and Industry Rahardi Ramelan had also promised that the Indonesian government would subsidize the import of cattle after the Australian government rejected the subsidy request.
"Subsidizing the exchange rate is no longer needed because the rupiah is much stronger now. The plan was made when the rupiah traded at over Rp 13,000 per dollar," Deswandhy said.
It traded at 8,500 to the dollar on Wednesday.
Australia's exports of cattle to Indonesia in the eight months ending Aug. 31 shrank to just 3,259 head, compared to 240,000 head in the first eight months of 1997.
Indonesia was Australia's biggest buyer of live cattle until last year's economic crisis in Southeast Asia dragged the rupiah to as low as 17,000 January to the U.S. dollar from about 2,500 in July 1997. The Philippines is today the largest market for Australia's live cattle exports.
The Memorandum of Understanding agreement on the special beef cattle imports was signed in Perth on Oct. 29 by representatives of the Indonesian and Western Australian governments.
Deswandhy said the two parties had also agreed to develop a business network program between cooperatives and small and medium enterprises of Western Australia and Indonesia.
He added that the Western Australian government had agreed to help the ministry in its programs on the development of the rural economy in East Nusa Tenggara, Sulawesi, Maluku and Irian Jaya. (gis)