Home > Cattle program demonstrates benefits of Australia-Indonesia economic cooperation

Cattle program demonstrates benefits of Australia-Indonesia economic cooperation

Editorial
article image

Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, has welcomed Indonesian Minister for Trade, H.E. Mr Thomas Lembong, to Australia for talks on mutually beneficial trade and investment opportunities.

Minister Joyce said Australia and Indonesia already strong cooperation in agricultural trade and agribusiness; cooperation that could be further enhanced by progressing negotiations on the proposed Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

"The IA-CEPA will be an important mechanism for both nations to strengthen the trade and investment relationship as close neighbours across a range of goods and services," Minister Joyce said.

"In the agriculture sphere we have been working with Indonesia through the Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector that encourages greater trade and investment between our nations by strengthening regional supply chains beef and cattle."

"This level of cooperation is a good model that could be expanded to more industries and sectors through the IA-CEPA to enhance the trade and investment relationship."

As the next step, Minister Joyce and Minister Lembong announced a three-year pilot cattle breeding project in Indonesia, funded through the partnership. Australia is providing $8 million to the project. 

The project aims to develop commercially viable beef cattle breeding business models in Indonesia, potentially opening up investment opportunities and increasing demand for Australian breeding stock.

Minister Lembong welcomed the project, which could help Indonesia achieve its food security goals and open up investment opportunities in Indonesia.

Minister Lembong said he believed over time, in partnership with Australian industry, that Indonesia would be able to develop the Indonesian cattle and meat industry into its own significant export industry.

“Indonesia highly appreciates Australia’s assistance, especially in the eastern part of Indonesia which is relatively close to Australia but still under-developed,” Minister Lembong said.

“Australian investors and their technology are central to securing significant mutual benefits through the IA-CEPA.

“We intend for the IA-CEPA to be as far-reaching as possible, encompassing many sectors including education, vocational training and certification, the hospitality sector, healthcare, financial services and many other sectors with special emphasis on the services sectors. The digital revolution adds another exciting dimension to our IA-CEPA discussions.

“The Australian meat and cattle sector is moving towards high tech, and as such, is a good example of the complementary nature of the Australian and Indonesian economies.”

Minister Joyce said Australia’s live export trade with Indonesia is a valuable partnership between Australian producers and exporters, and Indonesian importers, feedlots and abattoirs—with both sides profiting from their participation in the supply chain.

“This partnership can also provide Indonesian consumers with reliable access to quality, affordable meat, where there is a stable and consistent trade framework,” Minister Joyce said.

“As Indonesia moves to increase its livestock breeding capacity, Australian cattle producers are well placed to share their extensive knowledge and expertise, which will help Indonesia achieve its food security goals and increase our opportunities to supply high value breeding stock.

“It’s a glimpse of the mutual benefits that will flow from integrating our economies under IA-CEPA.”

Newsletter sign-up

The latest products and news delivered to your inbox