Indonesian Government Cuts Beef Import Quota for Private Importers

Significant Reduction Sparks Industry Concerns

The Indonesian government has made a substantial reduction in the beef import quota for private importers, cutting it from 297,000 tons in 2025 to just 30,000 tons in 2026. This drastic 90% reduction has sent shockwaves through the industry, with business associations strongly objecting to the new policy ¹

Industry Reaction and Concerns

The Asosiasi Pengusaha Pengolahan dan Pedagang Daging Indonesia (APPDI) has been at the forefront of opposition to this policy change. Teguh Boediyana, APPDI's Executive Director, stated that businesses were caught off guard by the sudden decision. The association, representing over 100 companies, has formally expressed its objections to the government and requested a policy review ¹

Potential Market Impact

Industry experts warn that this significant reduction in import quota could lead to several negative consequences:

1. Price Increases: Reduced supply may drive up beef and processed product prices
2. Business Disruptions: Limited quota allocation could halt operations for many importers
3. Potential Layoffs: Companies might be forced to reduce their workforce due to operational constraints
4. Market Shortages: The drastic reduction may lead to shortages in the domestic market

Industry Capacity and Allocation Challenges

The 30,000-ton quota for 2026 must be distributed among more than 100 companies, making the allocation extremely challenging. This limited supply will likely lead to short-term business operations, potentially disrupting the entire supply chain ²

Government Engagement and Future Outlook

APPDI has already taken steps to engage with the government, meeting with the Directorate General of Livestock and Animal Health on January 9, 2026, to express their concerns. The association continues to urge the government to reconsider this policy decision in light of its potential economic and market impacts ¹