Analysis of the effects of beef import restriction policy on beef self-sufficiency in Indonesia
2014
Kusriatoni | Oktaviani, R. | Syaukat, Y. | Said, A.
Beef consumption tends to increase over time, but the growth of domestic beef production is lower than the growth of consumption. This had led to the increase in import. In line with the launch of a beef self-sufficiency program, the government has attempted to reduce import quotas on beef and feeder cattle to encourage the growth of cattle and beef production. This study aims to analyze the impact of the restrictions of beef import on the performance of the beef cattle industry and livestock subsector and the forecast of beef self-sufficiency achievement in Indonesia. This study utilized time series data during the period 1990-2011. By using econometrics approach with simultaneous equations model, which is based on the Two Stages Least Squares method, the results of the analysis give some conclusions including: 1) restrictions on imports of feeder cattle and beef would increase domestic beef production and beef demand, but would reduce the population and production of cattle and livestock subsector performance, 2) reduction in imports of beef and feeder cattle followed by technology improvement will accelerate the achievement of beef self-sufficiency in Indonesia.
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