SOEs affirm meat sales remain below government purchasing price benchmark

Jakarta — Several state-owned enterprises (SOEs) tasked with importing and selling beef and buffalo meat have reaffirmed that they are selling the foodstuff below the government-established purchasing price benchmark (HAP) at the consumer level.

Maryadi, Chief Executive Officer of PT Berdikari, stated in Jakarta on Saturday that as an SOE, the company cannot sell frozen buffalo meat above the stipulated price. “There is no way we sell frozen buffalo meat above Rp80,000/kg (HAP). We are audited by the State Audit Board (BPK). Even though there is no criminal penalty, if we sell above the price, we will certainly be asked to reimburse it,” he said.

The statement responded to the Indonesian Meat Butchers and Traders Association (JAPPDI), which has alleged that the government applies unfair price oversight for beef sales whilst allowing imported buffalo meat to be sold far above the HAP.

Maryadi denied claims by JAPPDI Chairman Asnawi that he purchased frozen buffalo meat from Berdikari at Rp90,000/kg.

Ghimoyo, Chief Executive Officer of Rajawali Nusantara Indonesia (ID Food), made similar statements, asserting that SOEs cannot possibly sell meat assigned by government mandate above the reference price. However, he acknowledged that once goods are delivered to buyers, price control becomes difficult. “We cannot know how many hands the goods pass through. That is beyond our control,” he said.

Earlier, JAPPDI Chairman Asnawi had stated that he initially could not obtain buffalo meat from Berdikari because stocks were depleted and was advised to purchase from existing distributors. Subsequently, he managed to purchase 8 tonnes of frozen buffalo meat from India at Rp90,000/kg, equivalent to Rp720 million. “The purchase price is clearly above the HAP at the consumer level. If buffalo meat prices at the distributor level are already far above the HAP benchmark, it is hardly surprising that consumer-level prices would be even higher,” he said.

Meanwhile, Agung Suganda, Director General of Livestock and Animal Health at the Ministry of Agriculture, called on the public to report stores or traders selling above the HAP to the National Food Agency’s (Bapanas) Clean Sweep Task Force (Satgas Saber) for Food Price, Quality and Safety Violations for enforcement action. “If any store sells frozen buffalo meat not in accordance with HAP, report it to the Satgas Saber team. Let them be caught,” he said.

Agung also disputed claims that buffalo meat prices are significantly above the consumer HAP of Rp80,000/kg, noting that affordable buffalo meat at the benchmark price is available at kiosks or shops displaying special banners advertising affordable buffalo meat sales. “Frozen buffalo meat is typically sold at kiosks with signage indicating affordable buffalo meat prices,” he said.