The Dilemma of Padang Restaurants in Batam: Squeezed by Soaring Beef Prices Ahead of Ramadan
As the tenth week before Ramadan approaches, culinary entrepreneurs in Batam City, particularly owners of Padang restaurants, are suffering from soaring beef prices.
The drastic increase in production costs is forcing them to devise creative solutions to keep their businesses afloat amid consumer purchasing power constraints.
Based on data from the Batam City Industry and Trade Office (Disperindag), frozen beef prices have averaged above 110,000 rupiah per kilogram, a significant jump from the normal price range of 80,000 to 90,000 rupiah per kilogram. Meanwhile, fresh beef prices at several traditional markets have even reached 150,000 rupiah per kilogram.
This situation represents a serious blow to Padang restaurants, which depend heavily on beef supplies for signature dishes such as rendang and curry.
Luki, 29, owner of Aden Suko Restaurant in the Batam Centre area, admits he has been forced to reduce raw material purchase volumes due to the price increases.
“Customers like Padang restaurant sellers still buy, but in smaller quantities. They usually purchase five kilograms, now they only take two kilograms,” Luki said on Saturday (28 February).
This reduction in purchase volume not only creates difficulties for restaurant operators but also hits meat traders’ revenues at markets, reported to have fallen by almost 50% compared to normal days.
Beyond beef, economic pressure is also coming from price increases in other essential commodities such as rice, sugar, and chicken. Yudhi, 32, a food vendor in Batam Centre, complained about shrinking profit margins. He admitted being in a dilemma about raising selling prices for fear of losing customers.
“All raw material prices have risen, but if food prices increase too much, customers might leave. In the end, we can only reduce our margins,” Yudhi lamented.
He also regretted the minimal field supervision by officials when the market situation is becoming unfavourable.
To survive, culinary entrepreneurs generally implement two main strategies: adjusting meat portions in each dish or gradually increasing prices for beef-based menus.
Some are also beginning to offer more alternative side dishes such as eggs and chicken to keep prices affordable for consumers.
On the other hand, the response from relevant authorities has been normative. The Batam Disperindag considers the trend of price increases ahead of major religious celebrations to be an annual phenomenon still within reasonable limits.
“We actually don’t need to go to the field; we just need to ask traders. The most important thing is not to exceed the maximum retail price,” said one Batam Disperindag official when contacted.
This passive stance from authorities contrasts sharply with the expectations of UMKM operators. They are eagerly awaiting concrete steps from the government to stabilise food prices so that the wheels of small-scale commerce can continue turning without having to sacrifice the quality of service to the community.