Jakarta. The government is planning subsidies to keep beef within a reasonable price range as it still relies on imports for the meat.

According to Chief Food Minister Zulkifli Hasan, the government has capped beef at Rp 142,000 ($8.03) per kilogram. If prices rise by more than 5%, the government will use state and regional budgets for subsidies, Zulkifli said, adding that beef prices remain vulnerable to exchange rates. 

“We are still not yet self-reliant when it comes to beef. That’s why the price adjusts depending on the exchange rate. … But we have requested fund withdrawals from the state or regional budgets if there is a 5% price hike,” Zulkifli said over the weekend.

Australia is Indonesia’s leading beef supplier. The same goes for Brazil. The Indonesian rupiah has been free-falling against the dollar in recent months, even weakening beyond the Rp 18,000 threshold.

President Prabowo Subianto has ordered self-reliance on beef in five to six years, even mulling tapping cloning technologies to multiply the number of beef cattle. 

A traditional market in Jakarta’s Pasar Minggu area reported that beef reached Rp 150,000 ($8.48) over the past five months. Butcher Ahmad admitted that some consumers were now buying less. 

"People would usually buy 5 kilograms of beef, but they are cutting their shopping list to just 2 or 3 kilograms," Ahmad said on Friday, while admitting that daily sales have drastically dropped by more than half to just 20 kilograms.

“But we wouldn’t make a profit if we don’t sell it [at Rp 150,000] per kilogram.”

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