Invaluable Insights for Indonesia

Entering 2019, the Partnership published three reports that are pivotal to developing the red meat and cattle industry in Indonesia.
  • Unloading of cattle at Panjang Port in Lampung
Feasibility Assessment of a Beef Processing Bonded Zone in Indonesia

This study detailed the economic feasibility and viability of establishing a bonded logistics zone as a means of improving Indonesia’s beef production, processing and exporting.

In theory, a bonded zone could enable an enterprise to leverage Indonesia’s low labour costs, consistent feed availability and high returns for beef by-products into a more competitive offering for the domestic market. The report looked at the costs and benefits of establishing such a zone for cattle production and processing, as well as key factors that would determine its ongoing commercial success.

The study also assessed the potential to sell cuts from imported Australian cattle to third-party markets overseas. It explored the financial viability of constructing facilities to feed, slaughter and debone Australian cattle in Indonesia, with the intention of exporting a percentage of the product.

The report’s main findings concluded that the construction of facilities to feed, slaughter and debone Australian cattle in Indonesia, with the intention of exporting a percentage of the product, is unlikely to be financially viable. There is currently no significant business driver to establish a bonded zone for this purpose in Indonesia.


Indonesia’s Supply Chain and Logistics Study
Transporting cattle from the ports to feedlots or abattoirs
Transporting cattle from the ports to feedlots or abattoirs

This report looked at opportunities to improve supply chain logistics for live cattle imported from Australia and transported across Indonesia. It analysed the international supply chain delivering live cattle to the port in Lampung and onwards to feedlots and abattoirs, as well as the domestic supply chain transporting live cattle from farms in East Nusa Tenggara to ports in Java and onwards to feedlots.

The study comprised a literature review, on-the-ground observations and meetings with key stakeholders, with a focus on improving handling, logistics and animal welfare. Key findings included insights on the macro supply chain environment and constraints to improving the supply chain.

The report’s recommendations fell into three broad categories. Recommended capital expenditure included loading and unloading infrastructure for the international supply chain, and docking infrastructure for the domestic supply chain. Operational improvements for the international supply chain included the need for better stockhandling skills and use of higher-capacity trucks, while workers in the domestic supply chain require skills training to increase liveweight sizes and breeding capabilities. Recommendations for industry regulation and compliance covered berthing, quarantine and customs procedures in the international supply chain, and simplification of documentation in the domestic supply chain.


Indonesia’s Beef Consumption Trends and Preference Study
Indonesians purchase beef for in home cooking
Indonesians purchase beef for in home cooking

The purpose of this study was to better understand how and why Indonesian consumers purchase beef (including processed goods) as well as ascertaining current and future demand for both local and imported beef.

Using quantitative and qualitative methodologies, the study looked at consumption trends and preferences of Indonesians living in Jakarta (with its wide range of ethnicities and religions) and Medan (culturally distinct from Jakarta and closer to Malaysia and China). 

The report’s findings cover consumption patterns and beef-purchasing habits, identifying six significant clusters of demand for beef in Indonesia

Beef was found to be purchased weekly for home cooking by 34% of respondents in Jakarta and 28% of respondents in Medan, with limited awareness of the meat cuts available to consumers. Beef consumed outside the home is mainly purchased in stalls (Warungs), with 93% in Jakarta and 88% in Medan visiting them at least once a month.  

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