Vol 6 No 1 (2019)

Behind the Volatility of Beef Price in Indonesia

Made Antara
Agribusiness Study Program, Faculty of Agriculture, Udayana University, Bali
Made Sri Sumarniash
Agroecotechnology Study Program, Faculty of Agriculture, Udayana University, Bali
117 Views | 31 Downloads
  • Beef,
  • Meat deficit,
  • Volatility of prices,
  • Cartel.


The majority of Indonesian people fond of beef, so beef into meat favourit among other meats. Local beef cattle population which became a source of national beef production is likely to increase average 2.72% per year over a period of 16 years (2000 to 2016). The volatility of beef in Indonesia who had reached Rp 150,000 per kg before near the Eid al-Fitr 2015 has been troubling and troubling consumer society beef. This turbulence leads to an imbalance between consumption and production of local beef, where comsuption exceeds production, resulting in a deficit of beef. Based on projected production and consumption of beef, until 2019 Indonesia still deficit of beef. However behind the price volatility of beef in Indonesia, not only because of deficit of meat, but also the existence of a cartel of beef trade. Cartels are agreements some traders in setting the price of meat high in order to reach the high profit. The government, through the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha, KPPU) has fined 32 feedloter accused cartel of beef trade.