Talk Show Kebijakan Ekonomi Terkait Impor Sapi - IMS

Summary

The video discusses the impact of a 10% Value Added Tax (PPN) on imported beef in Indonesia, which caused a significant price increase despite the tax being removed. Experts and traders explain how the tax led to higher beef prices for consumers and how the government is working on boosting local beef production to reduce reliance on imports. There are also concerns about expanding import zones, particularly from countries with livestock diseases, which could further destabilize the market. The solution lies in balancing domestic production growth and regulated imports to stabilize beef prices and meet national demand.

Takeaways

• 😀 The government imposed a 10% Value Added Tax (PPN) on imported beef in January 2025, which initially led to a sharp increase in beef prices.
• 😀 The price of live cattle was around IDR 43,000 to IDR 44,000 per kilogram before the PPN, but it rose by IDR 1,000 per kilogram after the tax implementation.
• 😀 The PPN increase added IDR 4,400 to the price of beef, pushing the price of beef up to IDR 130,000 per kilogram for consumers.
• 😀 The Indonesian Beef Traders Association (APDI) and other stakeholders lobbied against the PPN, arguing that it would disrupt the market.
• 😀 After the PPN was revoked, beef prices decreased, with traders reporting a price reduction to around IDR 120,000 per kilogram.
• 😀 Despite the revocation of the PPN, challenges remain in stabilizing beef prices due to a lack of sufficient domestic beef production.
• 😀 The Indonesian government is aiming to increase local beef production to reduce the country's dependency on imports and stabilize prices.
• 😀 Local beef production has struggled to meet national demand, with the population of cattle not growing significantly enough to meet consumption needs.
• 😀 The government is also expanding the import of beef from countries like India, despite concerns over the country’s ongoing foot-and-mouth disease problems.
• 😀 To further stabilize the beef market, the Indonesian government is supporting local cattle farming initiatives, including a program to increase the number of productive cattle in rural areas.

Q & A

What was the impact of the 10% VAT (PPN) imposed on imported beef starting on January 8?

The 10% VAT on imported beef led to a significant increase in the price of beef, with live cattle prices rising from around 43,000-44,000 IDR per kilogram to about 45,000-46,000 IDR per kilogram. This caused a domino effect, raising the final price for consumers to 130,000-140,000 IDR per kilogram of beef, which resulted in widespread concern.

What were the reactions of the business owners and traders to the imposition of the VAT?

Business owners and traders were initially shocked and concerned about the VAT's impact, especially since there was no public hearing or proper consultation before its implementation. They argued that the decision was made abruptly and without sufficient preparation or understanding of the industry's condition.

How did the VAT affect the price structure from live cattle to final consumer prices?

The VAT added 4,400 IDR per kilogram to the price of live cattle, which in turn increased the cost for slaughterhouses and traders. This led to a price of approximately 123,000-125,000 IDR per kilogram of beef when it reached the market, which traders could not sell for less than 130,000-140,000 IDR due to operational costs.

Why did the price of beef remain high even after the VAT was removed?

Even though the 10% VAT was abolished, the price of beef remained high because the overall supply was still limited. Additionally, traders and stakeholders continued to face operational costs, and the cost of imported beef remained high due to fluctuating exchange rates and the ongoing issues with supply.

What was the government's response to the complaints of the traders and what actions were taken?

The government responded by acknowledging the negative impact of the VAT on the market and agreed to abolish the VAT. However, despite this decision, the price of beef remained relatively high, and traders continued to face challenges in stabilizing prices for consumers.

How did the imposition of the VAT affect the beef supply chain?

The imposition of the VAT disrupted the beef supply chain by raising the cost of beef at various stages, from slaughterhouses to the market. This led to price hikes at the consumer level, which impacted public perception and caused concerns about the affordability of beef.

What steps have the government taken to stabilize beef prices in the long term?

To stabilize beef prices, the government is working on increasing local beef production and improving the population of livestock through initiatives like the 'Rural Livestock Center' program, which aims to encourage local farmers to raise more productive cattle and reduce reliance on imports.

What challenges does Indonesia face in increasing local beef production?

Indonesia faces challenges such as a slow growth in local livestock populations, with insufficient numbers of mature cattle ready for slaughter. Additionally, the supply of beef locally is constrained, making the country dependent on imports, which are subject to external factors like currency fluctuations and trade policies.

How has the availability of beef impacted price fluctuations in Indonesia?

The availability of beef in Indonesia has directly contributed to price fluctuations. When beef supply is limited due to low local production or restrictions on imports, prices spike, creating instability in the market and making beef unaffordable for some consumers.

What role does the exchange rate play in the pricing of imported beef in Indonesia?

The exchange rate significantly affects the price of imported beef in Indonesia. As the Indonesian Rupiah weakens against other currencies like the US Dollar, the cost of importing beef increases, which ultimately drives up the price of beef in the domestic market.