Beef consumption in Indonesia will double as the middle class continues to grow and the government encourages people to eat more meat. Indonesian Ambassador to Australia, Nadjib Riphat Kesoema estimates there are 60 million middle class Indonesians with a growing appetite for protein. He said the number is expected to reach 150 million in 20 years. “Now the consumption of beef is about 2.3 kg/capita. The government is determined to double or triple it in 10-20 years’ time. With the cooperation of Australia, I believe it will happen,” he said.
With an aim for feeder beef cattle self-sufficiency, Indonesia this year plans to import 50,000 heads of breeder cows from Australia. Muladno, Director General of Livestock and Animal Health said the cows will be distributed to farmer groups in different regions in the country. “This project will require USD 98 million,” he told Asian Agribiz. Dr Muladno explained that livestock and veterinary experts, feedlotters and academics will be enlisted to ensure the success of the project. He added that the government is considering abolishing the import duty for breeder cows which is at 5% currently.
Indonesia’s Investment Coordinating Board (BKPM) has revealed that an Australian investor is keen on establishing an integrated meat processing facility in the country with exports as its main focus. “I can’t reveal the value of the investment but the investor has the ability to export 700 containers of frozen meat throughout the world in a week,” said Franky Sibarani, BKPM Chairman. He added that Indonesia was chosen because of its strategic location and halal certification system.
Re-post from: Asian Agribusiness