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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fitri N. Heriani
KPPU's Office. Photo by: RES
The Business Competition Supervisory Commission (Komisi Pengawasan Persaingan Usaha – “KPPU”) continued its investigations into a possible chicken cartel on Wednesday, 15 June 2016. This time, the KPPU called upon Rachmat Pambudy, a member of the Board of Supervisors for the Indonesian Association of Poultry Producers (Perhimpunan Insan Perunggasan Rakyat Indonesia - “Pinsar Indonesia”) to testify.
During his testimony, Mr. Pambudy highlighted the government’s involvement in the premature slaughter (apkir dini) of broiler chicken Parent Stock (PS), as conducted by 12 poultry businesses. Mr. Pambudy asserted that the premature slaughter was instructed by Muladno, the current Director General of General Livestock Breeding and Health (Direktur Jenderal Peternakan dan Kesehatan Hewan - “Director General”) through Director General of General Livestock Breeding and Health Directive (“Director General Directive”) No.15043/PK.010/F/10/2015 on the Adjustment of the Parent Stock (PS) Population.
The instruction was issued because at that time, many poultry businesses were suffering serious losses due to a severe drop in the living bird (ayam hidup) price to a point well below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). Oversupply has been pinpointed as the cause of this drop in prices. Mr. Pambudy further revealed that the government's initial intention was to double chicken consumption in the country over a period of five years, from 2012 to 2017. Unfortunately, such an increase in the level of consumption was not realized, and this in turn resulted in an oversupply of Day Old Chick (DOC) across the domestic market.
Ultimately, the production of broiler chicken skyrocketed and the price of live birds plummeted, resulting in two years of major losses for poultry businesses. According to one breeder, the cumulative losses could easily reach up to IDR 7 trillion.
“During that time, businesses were in a critical condition due to exposure to long-term losses. It is inevitable then that they demand that the government becomes proactive in solving the matter, including the demand to conduct a premature slaughter of Parent Stocks,” Mr. Pambudy asserted.
Hartono, Chair of the Board of Supervisors for Pinsar Indonesia, also ventured the opinion that the premature slaughter proposal could be traced back to Pinsar Indonesia’s demand that the government take measures to deal with the crisis being experienced by the country’s chicken breeders. In response to the severe losses being suffered by chicken breeders back in 2013, Mr. Hartono, who was at the time the Chair of Pinsar Indonesia, led breeder rallies at the Ministry of Agriculture, the Ministry of Trade, and the State Palace during the 2013 to 2014 period.
“We expressed our opinions for almost three years. My colleagues came voluntarily all the way to the State Palace. We even brought rotten eggs and released our chickens during a rally at the Ministry of Agriculture in order to symbolize our disappointment,” asserted Mr. Hartono.
Mr. Pambudy further asserted that, essentially speaking, premature slaughter was not a new issue, as this alternative solution had been the subject of discussion between the Director General and various stakeholders in the poultry business sector for quite some time.
“In fact, discussions and meetings held to address the severe drop in the price of live birds and market oversupply actually took place during the tenure of the previous Director General, with premature slaughter being decided upon as the recommended solution. It’s just that the execution of this solution wasn't realized until Mr. Muladno took up the position,” Mr. Pambudy asserted.
Mr. Pambudy believes that the premature slaughter policy was the correct move to make with regard to upholding the dignity of the government as it struggled to protect, rescue, and ensure the continuation of the national poultry industry. Indeed, this particular sector is seen to be of important strategic value, as it produces high-quality animal protein nutrients (such as chicken meat and eggs), which are affordable for most Indonesian citizens.
“Thus, the Director General’s action must be appreciated, respected, and also supported because he was carrying out his duties properly. The KPPU’s decision to intervene and nullify the Director General Directive may ultimately weaken the government by negating public and business-sector trust in their politicians,” Mr. Pambudy claimed.
Previously, the KPPU called upon the Director General to testify. During the proceedings, Mr. Muladno admitted that he had facilitated a series of meetings with various poultry businesses in order to respond to complaints addressed to the Ministry relating to the drop in the price of chickens below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). During these meetings, which took place a total of 42 times, a solution was finally agreed upon, namely the premature slaughter of 6 million Parent Stock animals for the purpose of increasing the HPP. The 6-million figure was proposed by the various poultry businesses which attended the meetings.
“It is true that data produced by poultry businesses, poultry associations, and the Ministry revealed an oversupply. Also, the suggestion to prematurely slaughter the excessive supply was proposed by myself, due to no definitive measures being agreed upon during the 42 meetings that we held. However, the figure of 6 million was proposed by poultry businesses themselves as well as the associations which were in attendance at the meetings. I merely trusted them [poultry businesses and associations] as parties which were knowledgeable about this line of business. After all, I had only facilitated those meetings in the first place in response to the severe drop in the price of chickens, which most definitely falls under the scope of my authority and responsibilities,” Mr. Muladno concluded.
During his testimony, Mr. Pambudy highlighted the government’s involvement in the premature slaughter (apkir dini) of broiler chicken Parent Stock (PS), as conducted by 12 poultry businesses. Mr. Pambudy asserted that the premature slaughter was instructed by Muladno, the current Director General of General Livestock Breeding and Health (Direktur Jenderal Peternakan dan Kesehatan Hewan - “Director General”) through Director General of General Livestock Breeding and Health Directive (“Director General Directive”) No.15043/PK.010/F/10/2015 on the Adjustment of the Parent Stock (PS) Population.
The instruction was issued because at that time, many poultry businesses were suffering serious losses due to a severe drop in the living bird (ayam hidup) price to a point well below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). Oversupply has been pinpointed as the cause of this drop in prices. Mr. Pambudy further revealed that the government's initial intention was to double chicken consumption in the country over a period of five years, from 2012 to 2017. Unfortunately, such an increase in the level of consumption was not realized, and this in turn resulted in an oversupply of Day Old Chick (DOC) across the domestic market.
Ultimately, the production of broiler chicken skyrocketed and the price of live birds plummeted, resulting in two years of major losses for poultry businesses. According to one breeder, the cumulative losses could easily reach up to IDR 7 trillion.
“During that time, businesses were in a critical condition due to exposure to long-term losses. It is inevitable then that they demand that the government becomes proactive in solving the matter, including the demand to conduct a premature slaughter of Parent Stocks,” Mr. Pambudy asserted.
Hartono, Chair of the Board of Supervisors for Pinsar Indonesia, also ventured the opinion that the premature slaughter proposal could be traced back to Pinsar Indonesia’s demand that the government take measures to deal with the crisis being experienced by the country’s chicken breeders. In response to the severe losses being suffered by chicken breeders back in 2013, Mr. Hartono, who was at the time the Chair of Pinsar Indonesia, led breeder rallies at the Ministry of Agriculture, the Ministry of Trade, and the State Palace during the 2013 to 2014 period.
“We expressed our opinions for almost three years. My colleagues came voluntarily all the way to the State Palace. We even brought rotten eggs and released our chickens during a rally at the Ministry of Agriculture in order to symbolize our disappointment,” asserted Mr. Hartono.
Mr. Pambudy further asserted that, essentially speaking, premature slaughter was not a new issue, as this alternative solution had been the subject of discussion between the Director General and various stakeholders in the poultry business sector for quite some time.
“In fact, discussions and meetings held to address the severe drop in the price of live birds and market oversupply actually took place during the tenure of the previous Director General, with premature slaughter being decided upon as the recommended solution. It’s just that the execution of this solution wasn't realized until Mr. Muladno took up the position,” Mr. Pambudy asserted.
Mr. Pambudy believes that the premature slaughter policy was the correct move to make with regard to upholding the dignity of the government as it struggled to protect, rescue, and ensure the continuation of the national poultry industry. Indeed, this particular sector is seen to be of important strategic value, as it produces high-quality animal protein nutrients (such as chicken meat and eggs), which are affordable for most Indonesian citizens.
“Thus, the Director General’s action must be appreciated, respected, and also supported because he was carrying out his duties properly. The KPPU’s decision to intervene and nullify the Director General Directive may ultimately weaken the government by negating public and business-sector trust in their politicians,” Mr. Pambudy claimed.
Previously, the KPPU called upon the Director General to testify. During the proceedings, Mr. Muladno admitted that he had facilitated a series of meetings with various poultry businesses in order to respond to complaints addressed to the Ministry relating to the drop in the price of chickens below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). During these meetings, which took place a total of 42 times, a solution was finally agreed upon, namely the premature slaughter of 6 million Parent Stock animals for the purpose of increasing the HPP. The 6-million figure was proposed by the various poultry businesses which attended the meetings.
“It is true that data produced by poultry businesses, poultry associations, and the Ministry revealed an oversupply. Also, the suggestion to prematurely slaughter the excessive supply was proposed by myself, due to no definitive measures being agreed upon during the 42 meetings that we held. However, the figure of 6 million was proposed by poultry businesses themselves as well as the associations which were in attendance at the meetings. I merely trusted them [poultry businesses and associations] as parties which were knowledgeable about this line of business. After all, I had only facilitated those meetings in the first place in response to the severe drop in the price of chickens, which most definitely falls under the scope of my authority and responsibilities,” Mr. Muladno concluded.
(hs/sp)
Marcell Sihombing, Fitri N. Heriani
KPPU's Office. Photo by: RES
The Business Competition Supervisory Commission (Komisi Pengawasan Persaingan Usaha – “KPPU”) continued its investigations into a possible chicken cartel on Wednesday, 15 June 2016. This time, the KPPU called upon Rachmat Pambudy, a member of the Board of Supervisors for the Indonesian Association of Poultry Producers (Perhimpunan Insan Perunggasan Rakyat Indonesia - “Pinsar Indonesia”) to testify.
During his testimony, Mr. Pambudy highlighted the government’s involvement in the premature slaughter (apkir dini) of broiler chicken Parent Stock (PS), as conducted by 12 poultry businesses. Mr. Pambudy asserted that the premature slaughter was instructed by Muladno, the current Director General of General Livestock Breeding and Health (Direktur Jenderal Peternakan dan Kesehatan Hewan - “Director General”) through Director General of General Livestock Breeding and Health Directive (“Director General Directive”) No.15043/PK.010/F/10/2015 on the Adjustment of the Parent Stock (PS) Population.
The instruction was issued because at that time, many poultry businesses were suffering serious losses due to a severe drop in the living bird (ayam hidup) price to a point well below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). Oversupply has been pinpointed as the cause of this drop in prices. Mr. Pambudy further revealed that the government's initial intention was to double chicken consumption in the country over a period of five years, from 2012 to 2017. Unfortunately, such an increase in the level of consumption was not realized, and this in turn resulted in an oversupply of Day Old Chick (DOC) across the domestic market.
Ultimately, the production of broiler chicken skyrocketed and the price of live birds plummeted, resulting in two years of major losses for poultry businesses. According to one breeder, the cumulative losses could easily reach up to IDR 7 trillion.
“During that time, businesses were in a critical condition due to exposure to long-term losses. It is inevitable then that they demand that the government becomes proactive in solving the matter, including the demand to conduct a premature slaughter of Parent Stocks,” Mr. Pambudy asserted.
Hartono, Chair of the Board of Supervisors for Pinsar Indonesia, also ventured the opinion that the premature slaughter proposal could be traced back to Pinsar Indonesia’s demand that the government take measures to deal with the crisis being experienced by the country’s chicken breeders. In response to the severe losses being suffered by chicken breeders back in 2013, Mr. Hartono, who was at the time the Chair of Pinsar Indonesia, led breeder rallies at the Ministry of Agriculture, the Ministry of Trade, and the State Palace during the 2013 to 2014 period.
“We expressed our opinions for almost three years. My colleagues came voluntarily all the way to the State Palace. We even brought rotten eggs and released our chickens during a rally at the Ministry of Agriculture in order to symbolize our disappointment,” asserted Mr. Hartono.
Mr. Pambudy further asserted that, essentially speaking, premature slaughter was not a new issue, as this alternative solution had been the subject of discussion between the Director General and various stakeholders in the poultry business sector for quite some time.
“In fact, discussions and meetings held to address the severe drop in the price of live birds and market oversupply actually took place during the tenure of the previous Director General, with premature slaughter being decided upon as the recommended solution. It’s just that the execution of this solution wasn't realized until Mr. Muladno took up the position,” Mr. Pambudy asserted.
Mr. Pambudy believes that the premature slaughter policy was the correct move to make with regard to upholding the dignity of the government as it struggled to protect, rescue, and ensure the continuation of the national poultry industry. Indeed, this particular sector is seen to be of important strategic value, as it produces high-quality animal protein nutrients (such as chicken meat and eggs), which are affordable for most Indonesian citizens.
“Thus, the Director General’s action must be appreciated, respected, and also supported because he was carrying out his duties properly. The KPPU’s decision to intervene and nullify the Director General Directive may ultimately weaken the government by negating public and business-sector trust in their politicians,” Mr. Pambudy claimed.
Previously, the KPPU called upon the Director General to testify. During the proceedings, Mr. Muladno admitted that he had facilitated a series of meetings with various poultry businesses in order to respond to complaints addressed to the Ministry relating to the drop in the price of chickens below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). During these meetings, which took place a total of 42 times, a solution was finally agreed upon, namely the premature slaughter of 6 million Parent Stock animals for the purpose of increasing the HPP. The 6-million figure was proposed by the various poultry businesses which attended the meetings.
“It is true that data produced by poultry businesses, poultry associations, and the Ministry revealed an oversupply. Also, the suggestion to prematurely slaughter the excessive supply was proposed by myself, due to no definitive measures being agreed upon during the 42 meetings that we held. However, the figure of 6 million was proposed by poultry businesses themselves as well as the associations which were in attendance at the meetings. I merely trusted them [poultry businesses and associations] as parties which were knowledgeable about this line of business. After all, I had only facilitated those meetings in the first place in response to the severe drop in the price of chickens, which most definitely falls under the scope of my authority and responsibilities,” Mr. Muladno concluded.
During his testimony, Mr. Pambudy highlighted the government’s involvement in the premature slaughter (apkir dini) of broiler chicken Parent Stock (PS), as conducted by 12 poultry businesses. Mr. Pambudy asserted that the premature slaughter was instructed by Muladno, the current Director General of General Livestock Breeding and Health (Direktur Jenderal Peternakan dan Kesehatan Hewan - “Director General”) through Director General of General Livestock Breeding and Health Directive (“Director General Directive”) No.15043/PK.010/F/10/2015 on the Adjustment of the Parent Stock (PS) Population.
The instruction was issued because at that time, many poultry businesses were suffering serious losses due to a severe drop in the living bird (ayam hidup) price to a point well below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). Oversupply has been pinpointed as the cause of this drop in prices. Mr. Pambudy further revealed that the government's initial intention was to double chicken consumption in the country over a period of five years, from 2012 to 2017. Unfortunately, such an increase in the level of consumption was not realized, and this in turn resulted in an oversupply of Day Old Chick (DOC) across the domestic market.
Ultimately, the production of broiler chicken skyrocketed and the price of live birds plummeted, resulting in two years of major losses for poultry businesses. According to one breeder, the cumulative losses could easily reach up to IDR 7 trillion.
“During that time, businesses were in a critical condition due to exposure to long-term losses. It is inevitable then that they demand that the government becomes proactive in solving the matter, including the demand to conduct a premature slaughter of Parent Stocks,” Mr. Pambudy asserted.
Hartono, Chair of the Board of Supervisors for Pinsar Indonesia, also ventured the opinion that the premature slaughter proposal could be traced back to Pinsar Indonesia’s demand that the government take measures to deal with the crisis being experienced by the country’s chicken breeders. In response to the severe losses being suffered by chicken breeders back in 2013, Mr. Hartono, who was at the time the Chair of Pinsar Indonesia, led breeder rallies at the Ministry of Agriculture, the Ministry of Trade, and the State Palace during the 2013 to 2014 period.
“We expressed our opinions for almost three years. My colleagues came voluntarily all the way to the State Palace. We even brought rotten eggs and released our chickens during a rally at the Ministry of Agriculture in order to symbolize our disappointment,” asserted Mr. Hartono.
Mr. Pambudy further asserted that, essentially speaking, premature slaughter was not a new issue, as this alternative solution had been the subject of discussion between the Director General and various stakeholders in the poultry business sector for quite some time.
“In fact, discussions and meetings held to address the severe drop in the price of live birds and market oversupply actually took place during the tenure of the previous Director General, with premature slaughter being decided upon as the recommended solution. It’s just that the execution of this solution wasn't realized until Mr. Muladno took up the position,” Mr. Pambudy asserted.
Mr. Pambudy believes that the premature slaughter policy was the correct move to make with regard to upholding the dignity of the government as it struggled to protect, rescue, and ensure the continuation of the national poultry industry. Indeed, this particular sector is seen to be of important strategic value, as it produces high-quality animal protein nutrients (such as chicken meat and eggs), which are affordable for most Indonesian citizens.
“Thus, the Director General’s action must be appreciated, respected, and also supported because he was carrying out his duties properly. The KPPU’s decision to intervene and nullify the Director General Directive may ultimately weaken the government by negating public and business-sector trust in their politicians,” Mr. Pambudy claimed.
Previously, the KPPU called upon the Director General to testify. During the proceedings, Mr. Muladno admitted that he had facilitated a series of meetings with various poultry businesses in order to respond to complaints addressed to the Ministry relating to the drop in the price of chickens below the Primary Sales Price (Harga Pokok Penjualan - “HPP”). During these meetings, which took place a total of 42 times, a solution was finally agreed upon, namely the premature slaughter of 6 million Parent Stock animals for the purpose of increasing the HPP. The 6-million figure was proposed by the various poultry businesses which attended the meetings.
“It is true that data produced by poultry businesses, poultry associations, and the Ministry revealed an oversupply. Also, the suggestion to prematurely slaughter the excessive supply was proposed by myself, due to no definitive measures being agreed upon during the 42 meetings that we held. However, the figure of 6 million was proposed by poultry businesses themselves as well as the associations which were in attendance at the meetings. I merely trusted them [poultry businesses and associations] as parties which were knowledgeable about this line of business. After all, I had only facilitated those meetings in the first place in response to the severe drop in the price of chickens, which most definitely falls under the scope of my authority and responsibilities,” Mr. Muladno concluded.
(hs/sp)