The Business Competition Supervisory Commission (KPPU) has called on the government to improve beef import controls by ditching the existing quota system for a tariff system.
According to KPPU chairman Syarkawi Rauf, a tariff system is more effective for controlling the supply and the price. The government will only need to reduce the import tariff to encourage importers to buy more beef if the local price is high due to limited supply.
“If the supply increases, this will make the price fall gradually […] However, an extremely low price is also harmful for local breeders,” he said in Jakarta on Tuesday.
The government could lift the import tariff to prevent excessive beef imports if there was adequate supply in the local market. This would eventually lead to stability in the domestic price, Syarkawi said.
He also called on the government to cut the long supply chain that has been driving significant beef price increases. The beef price has reached a peak of Rp 120,000 (US$9.06) per kilogram this year.
“The government should also provide incentives for logistic transportation,” Syarkawi said. (sha/ags)
Source: TheJakartaPost.com | 8 June 2016