The government will tighten issuance of Import Approval Letter (SPP) for import of meat and cattle. For that purpose, the government will revise Regulation of Agriculture Minister No. 52/Permentan/OT.140/9/2011 on Approval Recommendation on Cattle Import and Export Into and Out of Indonesian Territory. The new requirement is scheduled to become effective in the second semester of this year.
Syukur Iwantoro, Director General of Animal Husbandry and Animal Health of Agriculture Minister said that his party planned to add new requirement for importer who apples for SPP on meat and feeder cattle. The requirement include, amongst other, import realization performance and local cattle absorption. Other consideration is capacity of quarantine installation, slaughterhouse, and registered importer license.
On import performance, the government will consider the ability of company in realizing export quota received last year. If a company receives quota for import of feeder cattle of 100,000 heads, but only 40,000 heads are realized, the government will consider the granting of import license.
In determining companies who receive import quota, the Agriculture Ministry will involve the related institutions, amongst others, the Trade Ministry, Industry Ministry, and Economic Affairs Ministry. Total quota granted by the government to each importer will be based on mutual agreement of all institutions.
Concerning quantity of SPP for meat import, in the first semester of 2012, the government has issued 21,000tons for frozen meat or 60% of 34,000 tons. For meat import, there are at least 56 companies who requested for SPP. But, from the quota granted, the realization is only 70% - 80%.
While, SPP for import of feeder cattle for the first quarter of this year, 100% has been granted from the decided quota. The government decided import of feeder cattle in the first quarter of this year at 60,000 heads. From this amount, only around 25% that has been realized. Quota on import of feeder cattle is given to 24 feed otter companies who applied for license.
For this year, the government decided meat demand at 484,000 tons. From this amount, 399.22 thousand tons can be fulfilled by domestic supply. Local beef cattle population to meet meat availability reaches 2.51 million heads. 39% of then are male cattle and 61% female cattle.
So, the remaining 17,5% or 85,000 tons of meat demand must be fulfilled by import. For this year, the government decided quota on import of frozen meat at 34,000 tons and feeder cattle at 283,000 heads or equivalent to 51,000 tons of frozen meat. It means that 60% of import consists of feeder cattle and 40% consists of frozen meat.
Joni Liano, Indonesian Meat Producers and Feedlot Association (Apfindo), told Business News that there is no problem with government’s plan to tighten issuance of SPP for import of meat and feeder cattle. Yet, however, the companies expect the government to accelerate issuance of SPP.
So far, when a company files application for SPP, time of issuance of SPP took around 30 working days. This is because SPP processing must pass through many desks. In addition to the Directorate General of Animal Husbandry and Animal Health, SPP application must also pass through the Center for Agriculture Licensing and Investment and Agricultural Quarantine Agency. Issuance of SPP should, at the minimum, take only 15 working days.
Unlike the government who claims that cattle import in the first quarter has only reached 25%, Apfindo calculated that the quantity of imported cattle has reached almost 60% of quota given by the government. Even, in mid March it is expected that 100& of the quota issued will be realized.
Business News - February 29, 2012