RI given discount on cattle imports

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)