Apart from extending beef import permits to a quota of 27,400 tons for state-owned companies last week, Lembong said the ministry had also issued permits for the importation of 23,200 tons beef to private importers. The additional imports are expected to increase supply in the market, he said.

The minister further said the persistent skyrocketing beef price was because, until June 6, state logistics agency Bulog had realized the importation of only 1,800 tons while importer Berdikari had only imported 5,000 tons. With accelerated import realization and additional imports from private importers, he said, the beef price would go down to Rp 80,000 (US$6.04) per kilogram.

"We have issued permits for the importation of thousands of tons of beef, but I must admit the realization is still low. The importation process of several thousand tons is still ongoing. I believe in two weeks there will be an accelerated supply of imported beef," Lembong told reporters after a Cabinet meeting at the State Palace in Jakarta on Tuesday.

The minister admitted the government's decision to import beef was an extreme policy. Previously, he said, the government only imported cattle to meet beef demands in the country. Due to the increased demand and a shortage of supply, beef prices skyrocketed to Rp 120,000 per kg, forcing the government to take action.

"The current beef import policy is very extreme, not only because we decided to import beef instead of cattle, but also because it is such massive amount," he asserted.

Lembong also acknowledged the decision would likely pressure the Indonesian cattle industry, but he said the government needed to take such a measure to stabilize the beef price.

He said the Trade Ministry would monitor the distribution of all imported beef, from importers to consumers, to ensure that the beef was sold at a low price.

Amid the beef price hike in the first week of the fasting month, President Joko "Jokowi" Widodo insisted the government would lower the beef price to Rp 80,000 per kg.

He said the stubbornly high beef price had persisted due to the ongoing importation process. "It [beef importation] has already commenced. It is unlikely that the price will go down in just one, two, or three days. Most of the beef we imported has not yet arrived," he said.

During Ramadhan, the price of beef usually climbs by Rp 15,000 per kg. The beef price currently stands at about Rp 120,000 per kg.

"It's all about supply and demand. If the demand rises and the supply does not increase, the price will likely climb. But if the beef supply is sufficient, the price will definitely decrease," Jokowi explained.

Apart from beef, the government has also decided to import shallots and sugar to ensure the available supply of the commodities and to stabilize prices. (ebf)