THE DEMAND AND COMPETITON AMONG SUPPLY SOURCE IN INDONESIA MEAT IMPORT MARKET

Abstract

Indonesia meat consumption is low. Even by low level of consumption, Indonesia is still uncapable to fulfill the needs. It will take a long time and a hard work to reach self-sufficient. Till now, fulfillment of meat lacking is done by import. Some of countries which have the biggest number of meat import in Indonesia are New Zealand, USA, and Australia. This research was undertaken to analyze meat import demand in Indonesia so that it could be seen the condition of meat import demand in Indonesia. This research used national data in Indonesia and export data from those countries during 46 years and would be processed using an Almost Ideal Demand System (AIDS) model approachment. Research result showed that based on expenditure elasticity, Australia was more elastic than New Zealand and USA.rest of world (ROW) is the only one country which had an inelastic expenditure elasticity. Based on compensated elasticity, it was known that relationship among those countries and ROW were substituted one another. While based on uncompensated elasticity, New Zealand-USA; New Zealand-Australia; USA-Australia; USA-ROW; Australia-RO, were subtituted each other.But, New Zealand and ROW had a complementary relation. Based on research condition, the suitable strategy which can be done by government that theyhas to be wiser determining and maintaining import policies especially on import tarif application. Beside, government has to start increasing and empowering breeders to produce qualified outputs so that they can ensure production stability system in short and long run.