Indonesia's Beef Supply Faces Challenges Amid Import Delays

Local Production Shortfall

Indonesia's beef supply continues to face significant challenges as local production remains insufficient to meet national demand. The Indonesian Cattle and Buffalo Breeders Association (PPSKI) reports that the current national cattle population stands at approximately 11 million head, with an annual growth rate of only 2-3% ¹

. This limited growth means that domestic beef production can currently meet only about 40% of the country's total beef requirements.

Import Challenges and Permit Delays

The situation is further complicated by issues with beef imports. The Indonesian Meat Processing and Entrepreneurs Association (APPDI) has highlighted significant delays in the issuance of import permits for beef ²

. For the year 2025, import quotas were set at 60,000 tons, but permits were only issued in late October, with some as late as November or December ²

Source 2

https://industri.kontan.co.id/news/appdi-importir-daging-sapi-masih-hadapi-hambatan-perizinan

. This late issuance creates substantial challenges for importers, as it leaves insufficient time for realization within the remaining months of the year.

Impact on Supply Chain Management

The combination of limited domestic production growth and delayed import permits has created significant pressure on Indonesia's beef supply chain. Importers face challenges related to shipping schedules, particularly from countries like Australia, where production and export cycles must be considered. The delay in permit issuance effectively shortens the available timeframe for import realization, potentially leading to supply shortages and price volatility in the domestic market.