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* Import curbs part of plan for food self-sufficiency

* But so far result is lower supply, higher prices

* Street vendors pelt govt building with meatballs in

protest

By Neil Chatterjee and Andjarsari Paramaditha

JAKARTA, Dec 21 (Reuters) – When Barack Obama visited

Indonesia in 2010, he tucked in to a steaming bowl of meatball

broth, known as bakso, served to remind him of his childhood in

Jakarta. But the U.S. president may be out of luck if he wants

another helping on a visit next year.

Bakso sellers, normally street vendors with pushcarts, are

struggling to afford beef and on Thursday took the novel step of

pelting the trade ministry building with meatballs in protest

against prices doubling due to sharp restrictions on meat

imports.

These curbs are part of a grand plan for the world’s fourth

most populous nation to become self-sufficient in key food

commodities, but the result so far has only been lower supply

and surging prices.

“There’s no meat in the market. Maybe we’ll have bakso

tomorrow,” said Gerang, sitting next to a chained up soup tureen

at his empty bakso stand near Obama’s old school in the

exclusive Jakarta district of Menteng.

The two other bakso stalls in the area have already

disappeared, after President Susilo Bambang Yudhoyono’s

government slashed 2012 import quotas for live cattle by over a

third and beef by nearly two-thirds.

Next year quotas will be cut by another 30 percent for

cattle and 6 percent for beef, even as consumption is seen

rising 13 percent.

And beef stocks are dwindling, with officials saying Jakarta

has run out of its annual import quota for the meat.

Some bakso sellers have been making up for the lack of beef

with pork, considered an outrage in the world’s most populous

Muslim nation, as well as other unsavoury items.

“I stopped eating bakso two weeks ago after I found a small

tail in my soup. I vomited right after that. I thought it was

only an urban legend, but it happened to me,” said Rudi

Afriansyah, a diner at a food stall in Jakarta.

Indonesia has been partly protected from the global economic

downturn in recent years by its domestic production of

commodities such as palm oil and rice, creating calls by

nationalist politicians for even greater self-reliance.

This has also led to taxes on imports of wheat flour, corn

and soybeans. Last month Yudhoyono put domestic output and

control of imports at the heart of a new food law, signalling

further policies regulating trade in commodities are likely.

“Food should be available and affordable, but now it is not

available and not affordable. It will get worse because they are

trying to achieve self-sufficiency,” said Thomas Sembiring,

executive director of the Indonesian Meat Importers Association.

HOLY COW

The moves are affecting Australia as the top exporter of

beef and live cattle to neigbouring Indonesia. The Australian

Livestock Export council’s chief Alison Penfold said exports

were now significantly lower to Indonesia and farmers were

pursuing other markets to make up for the loss.

“The Indonesian government has an admirable goal … but is

trying to force this goal by restricting imports from

Australia,” said David Farley, managing director of major beef

cattle firm Australian Agricultural Company, in a commentary in

the Jakarta Post newspaper this week.

“A more measured policy would be to increase collaboration

with the Australian beef industry to supply Indonesia with the

cattle and technical expertise it needs.”

Indonesia’s local beef output is forecast to rise to 449,000

tonnes in 2013, but this still leaves a shortfall as beef

consumption is seen climbing at the same rate to 549,000 tonnes,

with chains such as Burger King and local steak houses like

Holycow spreading to cater to a burgeoning middle class.

“Self-sufficiency in beef is not rational. They should look

for self-sufficiency in other commodities but not in beef. An

additional 1 kg per capita per year will need an additional 1.5

million cattle … and it takes four years to calf in cattle

before slaughter,” said Sembiring.

(Additional reporting by Michael Taylor and Yayat Supriatna in

Jakarta, Colin Packham in Sydney; Editing by Joseph Radford)