President Joko “Jokowi” Widodo can have his beef for Rp 80,000 (US$5.84) per kilogram if he wishes, but for common customers, sorry, it’s non-negotiable at Rp 110,000.

The quip came from Ade Sudrajat, 35, who has been selling beef at Kebayoran Lama Market in South Jakarta for two decades. But the light moment reflected a serious situation that the government wants to avoid: soaring prices ahead of Ramadhan.

With the prices of many foodstuffs already on the rise ahead of the holy month, Indonesia, home to the world’s largest population of Muslims, who always spend big during Ramadhan, has surrendered to food imports to ensure adequate supply for taming volatile prices.

Beef is among four commodities in the government’s sights, along with sugar, shallots and rice. To bring down beef prices to Rp 80,000 per kg, as the government wishes, it is set to import 27,400 metric tons of the meat from New Zealand and Australia, among other countries.

Indonesia will also import 381,000 tons of sugar and 2,500 tons of shallots over the next few weeks. The country previously imported about 13,000 tons of rice from Myanmar.

The import need came into the spotlight amid Jokowi’s ambition of food sovereignty for the country, which is expected to become self-sufficient in basic commodities such as rice, sugar, corn and soybeans by the end of his tenure in 2019.

“Hopefully, with cooperation between ministries, we can maintain commodities at a fair price,” Trade Minister Thomas Lembong told reporters recently, citing targets of Rp 12,500 per kg for sugar, Rp 9,500 per kg for rice and Rp 25,000 per kg for shallots.

The real prices at markets are still far from the government’s targets. In Jakarta, beef is sold at an average of Rp 115,000 per kg, sugar at Rp 15,663 per kg, medium-quality rice at Rp 11,318 per kg and shallots at Rp 40,488 per kg, according to infopangan.jakarta.go.id, the city administration’s official website.

Agriculture Minister Amran Sulaiman said his ministry, along with the Trade Ministry and the State-Owned Enterprises Ministry, would cooperate in monitoring traders and distributors to ensure stable prices and equitable access to foodstuffs.

It is not news that Ramadhan is the peak season for retailers in Southeast Asia’s largest economy, from garments to food and beverages. Hence, many markets anticipate a boost in demand, which can spike prices, as Indonesians buy new clothing and gather with family and friends to enjoy traditional dishes.

“On normal days, there’s no dinner at home. But during the fasting month and Idul Fitri, it’s time to feast together,” said Watinah, 51, a housemaid in the capital city.

At Watinah’s home and many households in Indonesia, a favorite dish is rendang (beef simmered in coconut milk and spices).

But meat importers are saying the base price of imported beef from Australia is Rp 81,000 per kg, excluding importation and distribution fees. Especially with a limited time frame, they are pessimistic that the government can reach its target.

“Importing beef is not like buying packaged beef in a supermarket; it takes time. Can the government import so much beef for a low price in such a short time?” asked Indonesian Meat Importers Association (Aspidi) executive director Thomas Sembiring.

Consumer price data from May supported Thomas’ pessimism. Food prices rose the most among other commodities at 7.75 percent, compared with a benign overall annual inflation rate of 3.3 percent in the same period, Central Statistics Agency (BPS) data showed.

Muhamad Harun, 29, who works at a Padang restaurant in Joglo, said consumers would be the ones who suffered amid the price increases.

Revealing a trick from his restaurant, he said that when prices rose, workers cut meat into smaller chunks, so that a piece of beef normally divided into 20 could become 25 portions.

“If the prices go down, alhamdulillah [thank God]. We can give bigger portions to our customers. They will know if we cut the portions drastically and it’s not good for business,” he said. (adt)
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