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Indonesia: Beef cartel guilty of price fixing

By  |  April 27, 2016

Thirty-two Indonesian companies that import live cattle from Australia and operate feedlots have been fined a total of 107 billion rupiah ($10.5 million) for price-fixing by withholding beef from the market.

On July 14 last year the Indonesian government savagely cut its quota for cattle imports from Australia to 50,000 for the July to September quarter, in line with President Joko Widodo’s push for food self-sufficiency.

The dramatic cut – down from 250,000 in the previous quarter – led to beef prices soaring to 140,000 rupiah ($14) a kilogram in Jakarta wet markets.

On April 22 the Business Competition Supervisory Commission (KPPU) fined the 32 companies – including the Indonesian arm of Australian agribusiness giant Elders – for forming a beef cartel.

Chairman Syarkawi Rauf told Fairfax Media the 32 companies had withheld cattle from slaughter which led to a scarcity of beef in the market.

Full Content: Beef Central

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