Indonesia to Boost Livestock Sector through Strategic Import Policy

New Policy to Stimulate Domestic Value Addition

The Indonesian government is developing a new livestock import strategy that involves relaxing restrictions on live cattle imports while simultaneously tightening controls on frozen beef imports. This dual approach aims to maximize domestic value addition in the livestock sector by promoting local cattle fattening operations and feed production.

Economic Rationale Behind the Policy Shift

According to Minister Zulkifli Hasan, the Coordinating Minister for Food Affairs, the policy change is designed to stimulate economic activity in the livestock sector. By importing live cattle rather than beef, Indonesia can create additional economic value through local cattle fattening processes, job creation in the feed industry, and increased demand for domestic agricultural products used as cattle feed.

Balancing Imports and Domestic Production

The government plans to implement a balanced approach by adjusting import regulations in two key ways. First, it will liberalize live cattle imports, allowing more foreign cattle to enter the Indonesian market. Second, it will tighten controls on frozen beef imports to prevent market disruption and ensure that the increased local cattle fattening activity is not undermined by cheap imported beef.

Expected Economic Impact

The new policy is expected to have several positive economic effects. It will create new job opportunities in cattle fattening and feed production, increase income for local farmers supplying feed, and potentially boost Indonesia's overall livestock productivity. The government believes this balanced approach will strengthen the domestic livestock industry while meeting the country's beef demand more effectively.