Maintaining Meat Supply with Domestic-Scale Self-Sufficiency

At national scale calculations, beef production is said to have not been able to meet domestic demand, while in fact there are 18 regions that have an oversupply of meat. Some of them even strictly prohibit imports.

KOMPAS/VINA OKTAVIA

A Beef trader at Pasir Gintung Market, Bandar Lampung City, are sorting meat purchased by buyers at their stalls, Tuesday (5/7/2022)..

JAKARTA, KOMPAS — Nanang Purus Subendro, chairman of the Executive Board of the Indonesian Cattle and Buffalo Breeders Association, said one of the import bans was enforced in Lampung. "In Lampung, there is a regulation that prohibits the import of Indian buffalo meat," he said on Tuesday (14/3/2023). This regulation is stipulated in the Governor’s Circular No 524/2016.

Nanang said the central government allows local administrations to refuse imported beef to protect local breeders. "Incidentally, in Lampung there has been oversupply," he said.

The mapping of beef production and consumption conducted by Kompas Research and Development found the same thing. Based on calculations using data from the National Socioeconomic Survey (Susenas) released by Statistics Indonesia (BPS), total beef consumption in Lampung last year was 1,558.8 tonnes. Beef production in the same year reached 21,176.2 tonnes. In other words, this production is able to meet the needs of Lampung beef.

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In fact, if it is calculated based on data from the Agriculture Ministry (Kementan), an oversupply is still occurring. Even though the consumption figure from the Agriculture Ministry is higher than Susenas’ calculations, there is still an oversupply of around 13,000 tonnes.

A similar policy has been enforced in East Java since 2010. Through the Governor’s Circular No 524/2010, the Provincial Administration of East Java prohibits the entry and distribution of imported cattle, meat and innards.

If calculated using consumption data from the Agriculture Ministry, there is indeed a beef deficit in East Java of around 35,000 tonnes. However, calculations using Susenas’ data show a surplus of more than 82,000 tonnes in 2022, the largest among other provinces in Indonesia.

This oversupply is evidenced by the shipment of beef and ready-for-slaughter cows from East Java to the Greater Jakarta area, especially during the holidays. Not only East Java, Lampung also sent beef to Jakarta.

YOHANES MEGA HENDARTO

Frozen imported buffalo meat from India is sold in packages by traders at the Kramat Jati Central Market, East Jakarta (13/3/2023). The price of imported buffalo meat is often sold in traditional markets as imported beef at a price of Rp. 90,000 to Rp. 100,000 per kilogram.

Regional collaboration

This fact shows the opening of opportunities for inter-regional cooperation to fill each other's beef shortages. In other words, this was done by relying on local self-sufficiency. Other collaborative practices come from Jakarta Provincial Administration and East Nusa Tenggara (NTT) Provincial Administration.

Through PD Dharma Jaya and PT Flobamor, the Jakarta Provincial Administration opened a cattle breeding and slaughtering center in NTT. The collaboration has been carried out since 2014 and is still ongoing today.

As a province with the highest level of beef consumption, this collaboration is the right step taken by the Jakarta Provincial Administration. Calculations using data from Susenas or the Agriculture Ministry show that Jakarta always experiences a beef deficit. In fact, Jakarta is the province with the highest beef deficit in Indonesia.

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It is impossible for Jakarta to meet supply shortages of more than 95,000 tonnes in a year independently. Clearing land for livestock is impossible given the dense settlements in the capital city.

Not only for Jakarta, related collaborations also provide benefits for NTT, whose livestock continues to increase. Now, the population of beef cattle in eastern Indonesia has exceeded 1.2 million, up 26 percent from 2016.

Similar cooperation is good to be implemented in other provinces, especially those where the level of demand for beef is quite high. One of which is West Java. Even though the production is quite large, the population in West Java makes the demand for beef very high. In 2021, West Java will begin cooperation to purchase cattle from West Nusa Tenggara (NTB).

What also needs attention is North Kalimantan. Based on the two calculation methods, beef deficit in North Kalimantan always occurs. The need for 1,000 tonnes of beef a year cannot be met because production has only reached 895 tonnes, the lowest nationally.

FRANSISKUS PATI HERIN

Cattle quarantined in Wini, North Insana District, North Central Timor Regency, NTT on Sunday (12/6/2022). Cattle that are free of foot and mouth disease will be supplied for Eid al-Adha in Java and Kalimantan.

As an alternative, North Kalimantan can cooperate with neighboring provinces, such as East Kalimantan and South Kalimantan, which are currently developing cattle-oil integration. Cattle farming in oil palm plantations is estimated to be able to increase the supply of domestic meat at prices that are no less competitive than imported beef.

This is not impossible to realize. Infrastructure is available everywhere. Toll roads have connected the provinces, even the islands.

High cost of economy

Overall, 18 provinces in Indonesia still experience a beef surplus, based on calculations using data from the Agriculture Ministry. Even though the amounts vary, the excess supply of one region to meet the needs of other regions will reduce dependence on imports.

In addition, the accuracy of the overall mapping will lead Indonesia to realize its dream of becoming a food barn of the world, one of which is providing beef. "The government has planned that in 2045 Indonesia will become the world's food barn. If you want to be serious, the analytical calculations must be consistent," said Rochadi Tawaf, an agribusiness expert at Padjadjaran University, on Sunday (12/3).

Another alternative comes from the plant-based meat trend. Meat based on plant material or plant-based meat is starting to be looked at by many industries. It is not impossible, this could be one of the solutions to reduce import demands. Moreover, Indonesia has the advantage of abundant natural resources.

However, continuous imports will eat away at the country's foreign exchange reserves. According to BPS records, the budget spent on beef imports continues to increase.

If national self-sufficiency cannot be realized, local-scale self-sufficiency can be an option.

In 2017, Indonesia had to pay US$572,028 or around Rp 7.7 trillion to import beef from all trading partners. This amount almost doubled to Rp 13.6 trillion last year. It should be remembered that imports are very sensitive to global conditions. In addition, the rupiah exchange rate has tended to weaken recently.

Seeing these facts and the chaotic beef commodity to date, in-depth spatial mapping deserves to be put forward. However, the national demand for beef is an accumulation of regional demands.

Because of this, it is important to look at conditions in each province and open inter-regional cooperation. If national self-sufficiency cannot be realized, local-scale self-sufficiency can be an option. (Kompas R&D)

This article was translated by Kurnia Siswo.