APPENDIX: THE INDONESIA FEED AND LIVESTOCK SECTOR, A STATISTICAL OVERVIEW - Paul Riethmuller (Department of Economics, The University of Queensland)

SOME FEATURES ON THE INDONESIAN ECONOMY
AGRICULTURE IN THE REGIONS
THE IMPORTANCE OF LIVESTOCK TO THE REGIONAL ECONOMY
CHARACTERISTICS OF THE LIVESTOCK INDUSTRY
THE POULTRY INDUSTRY
NATIVE CHICKEN
BROILER CHICKENS
EGG PRODUCTION
DUCKS
THE CATTLE INDUSTRY
OTHER LIVESTOCK
PROGRAMS TO INCREASE LIVESTOCK NUMBERS
GOVERNMENT POLICIES
CONSUMPTION
TECHNICAL COEFFICIENTS
THE INDONESIAN FEED INDUSTRY

Paul Riethmuller
Department of Economics, University of Queensland, Brisbane, Australia

The purpose of this part of the report is to outline the characteristics of the Indonesian feed and livestock sector, focusing on developments between 1985 and 1997. The livestock industries cover the poultry industries, the dairy industry, beef and pig meats, as well as smaller industries such as sheep, horses and goats. A number of these industries are regionally concentrated - the dairy industry for example is to be found in the highland areas of Java - and a number have expanded rapidly over recent years as income levels in Indonesia have grown. The future of industries such as the beef and dairy industries must now be very uncertain in light of the financial difficulties that arose in Indonesia in the latter half of 1997. The uncertainty is due to the sharply reduced rates of economic growth that can be expected for the next few years and the IMF imposed restrictions on government support for industry.

This section of the report begins by describing some of the broad characteristics of the Indonesian economy. This includes details of growth rates of population and income. This information is important because one of the reasons for the expansion in livestock industries is the income growth that led analysts to classify Indonesia as one of the tiger economies of Asia. Yet because of Indonesia’s limited land area, it seems to be not well suited to industries based upon large livestock. A broad overview of the livestock industries follows, including some information on the characteristics of the people working in the industry. Then comes an outline of each of the industries, with details being provided on livestock numbers, production and the regional distribution of livestock. The feed stuff industry is described next, and this is followed by information on the consumption of livestock products, including elasticity estimates obtained from econometric studies.