Abstract:
Beefsupply shortages are a major concern for the Indonesian government. A range of policy measures
has been put in place to increase local beef production and to reduce imports especially from
Australia. The objectives of this study were to understand the demand for, and supply of, beef in
Indonesia and to draw implications for Australia. The main finding is that per capita consumption of
beef in Indonesia as a whole is unlikely to increase significantly in the near future due to disparities in
socio-economic development and geographical diversity in dietary preferences across Indonesia,
despite the rise of the middle class and Westernisation and urbanisation in some major cities. The
implications for Australia are three-fold. Firstly, despite whether and how the Indonesian beef market
is likely to grow, to maintain a strong market position, Australia needs to be price competitive in
whatever market segments it aims to compete. Secondly, for developing effective marketing
strategies, more market research is needed to better understand the demand for beef in different
market segments (households vs the food service sector, and high end vs low end segments), at
different times (normal vs seasonal peaks) and in different regions (Jakarta vs other). Thirdly, the beef
trade is important and beneficial to the Indonesian and Australian beef sectors, and both countries
can gain from a more open and stable trading environment, which may be improved with the
Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA) effective in July 2020.
Key words: export ban, food law, import restrictions, demand seasonality, beef self-sufficiency.
