Calculating Profit And Loss For BUMN To Buy Cattle Farms Abroad
JAKARTA - The House of Representatives (DPR) supports the plan of Minister of State-Owned Enterprises (BUMN) Erick Tohir to buy cattle farms in Belgium. This method is used by the state-owned company to overcome dependence on beef imports.
The BUMN minister's intention was sparked in a webinar of Millenial Hub: Millennial Fest x PPI Belgium. He also conveyed his wish directly to the Indonesian Ambassador to Belgium, Andri Hadi. "If there is a cattle farm in Belgium, Mr. Ambassador (Andri) wants to be sold. Yes, Belgian Blue, sir. Ambassador's farm, if there is. , 5 million per year, "said Erick, Saturday, April 17.
Erick said that the state-owned company that buys and manages the cattle farm will later meet domestic beef needs.
Responding to the discourse, Deputy Chairman of Commission VI of the Indonesian Parliament Martin Manurung considered the plan a breakthrough to suppress beef imports to meet the very high national needs. Apart from that, BUMN should have the courage to step out.
"This is a step that we must support. So far, our BUMNs have only been good at home," said Martin in his statement in Jakarta, Monday, April 19. If necessary, continued Martin, BUMN in other sectors can follow these steps by looking at the opportunities that exist. There is, especially in meeting domestic needs. Regarding the need for beef, the legislator for the North Sumatra II electoral district said, until now Indonesia still cannot be separated from meat imports. In fact, the high demand for beef should be an opportunity to increase state income through its own business entities. The chairman of the NasDem Party DPP gave an example to neighboring countries such as Malaysia and Brunei that already have cattle ranches outside their country. "They have farms in Australia which are managed by institutions. the country in charge of that, to meet domestic and even foreign needs, "said Martin. Even if domestic beef needs still need to be supported by imports, the imports come from state-owned companies that are abroad." If we import from BUMN itself, then the term is like leaving the left pocket into the right pocket, "explained Martin. Even so, Martin reminded the government to keep paying attention to local livestock through the relevant ministries or institutions.
"With the existence of BUMN-owned farms outside and local farms in Indonesia, in the future the national demand for beef can be met. "If possible, someday Indonesia will become one of the biggest meat exporters," concluded Martin Manurung.
Meanwhile, Chairman of the PAN faction of the DPR RI, Saleh Partaonan Daulay, assessed that the discourse of purchasing cattle breeding abroad by BUMN Minister Erick Tohir does not need to be debated. Because according to him, the agenda is considered very good and productive.
Moreover, said Saleh, Indonesia's national need for meat is very high. Meanwhile, the existing local farms are unable to supply these needs. "This is creativity that needs to be appreciated. It needs to be supported by all parties. Bright ideas like this should not stop at the beginning," said Saleh in his statement, Thursday, April 22. "If there is criticism, please convey it. This agenda. However, do not say that it has been rejected. Meanwhile, this has just been initiated, "he continued. Even so, the member of the House of Representatives Commission IX views that the program to buy livestock abroad needs to be ascertained whether it can bring benefits or benefits to the wider community. For that, said Saleh, the Ministry of State-Owned Enterprises must openly explain the aims and objectives of buying cattle farms in Belgium.
"From that explanation, the prospects for this policy will be clearly seen," he said.
Along with purchasing farms abroad, the legislator for the North Sumatra II electoral district also encouraged the BUMN ministry to empower and build local farms.
The reason is, there are many regions and regions in Indonesia that are very suitable for livestock development. In the future, according to Saleh, it is up to the government to provide support, both in terms of technology, capital, and assistance. "It can be made together. Purchasing livestock abroad as well as developing domestic livestock. If this can be combined, Indonesia will soon be self-sufficient in meat. , "said Saleh.
Saleh said he supported the idea conveyed by the Minister of BUMN. So there needs to be a continuation of the plan, of course with a measured agenda. "Pak Erick's idea is something new. I think it has never been thought of and scheduled before. Therefore, it is very appropriate to follow up and implement it," said Saleh Partaonan Daulay.
It is known, so far Indonesia has always imported beef because the demand reaches 700 thousand tons each year. Meanwhile, domestic availability is only 400 thousand tons, so they are forced to import 300 thousand tons every year. To meet this shortage, if you want to add more cows, it will take nearly two million cows and it will take a long time because you have to prepare the farmland and all the livestock procedures.
Based on data from the Central Statistics Agency (BPS), beef imports in March totaled 11.27 thousand tons with a value of US $ 36.83 million. This import was up 44.22% compared to February 2021 of 7.81 thousand tons.
Compared to the same period in the previous year, meat imports also increased by double digits, namely 17.46%, which was recorded at 9.6 thousand tons in March 2020. Cumulatively (January-March), meat imports also increased by 31% to 30.84. thousand tons from the previous 23.54 thousand tons in the first quarter of 2020. Here are 5 countries that imported beef from Indonesia during March 2021: 1. Australia 7,834 tonnes with a value of US $ 24.43 million2. India as much as 1,820 tons thousand tons with a value of US $ 6.37 million3. New Zealand as much as 935.82 tonnes with a value of 2.79 million US dollars4. The United States of America as much as 388.43 tons with a value of 2.11 million US dollars 5. Spain as much as 289.63 tons with a value of 977.2 thousand US dollars
In line with board members, Public Policy observer Agus Pambagyo supports the idea of BUMN Minister Erick Thohir to buy cattle farms in Belgium. Given, Indonesia always imports beef because domestic supply has not been able to meet public demand.
"There are many obstacles to building a beef cattle farm. In animal feed, for example, to produce beef cattle that are accepted by the industry, the feed is not arbitrary, as is the age of slaughtering cattle," said Agus in his statement, Tuesday, April 20.
According to Agus, farmers will find it difficult to raise cows. The reason is that the price of animal feed is expensive because it is not subsidized by the State Budget. This situation makes farmers feed grass or other feed that prevents cows from growing according to industry standards or below standards. The average cow is slaughtered prematurely. Meanwhile, Erick's idea to buy a cattle ranch abroad is actually not new. Agus said the BUMN Ministry under Dahlan Iskan had also intended to buy cattle farms abroad. However, the idea was not realized. According to Agus, purchasing livestock abroad needs to be carried out carefully and carefully. Therefore, the Ministry of BUMN needs to involve a supervisory agency so that there are no miscalculations. The supervisory institutions in question are the Supreme Audit Agency (BPK) and the Corruption Eradication Commission (KPK). Senada, former KPK leader and anti-corruption activist Erry Riyana Hardjapamekas explained that there is no problem if SOEs want to buy overseas farms. However, there needs to be formulation of policies that are accurate and legitimate. Some countries have bought livestock abroad. Malaysia, for example, through the Sarawak Economic Development Corporation (SEDC) bought a large farm in Australia in May 2019.