Indonesia-Australia Livestock Investment Cooperation


As much as 2,000 bloodstocks and 100 bullock cows will be delivered from Australia to Indonesia as a form of Indonesia-Australia Food Safety Partnership Program in red meat and cattle farm sectors. It is informed by the Australian Embassy in Jakarta on October. Previously, Australia contributed in cattle farm business by sending 300 cows to the partnership area in South Borneo. The delivery is part of Indonesia-Australia Commercial Cattle Breeding Program (IACCB). Barnaby Joyce, Australia Vice Prime Minister also Minister of Farming and Water Resources, with Thomas Lembong, Chairman of Investment Coordinating Board (BKPM) express that the Indonesia-Australia cooperation is a government effort to develop Indonesia’s cattle farm industry and to increase Australia’s investment opportunity. In the end, the cooperation program can increase trading sector of both countries.

Joyce said that the Indonesia-Australia cattle farm and red meat industry development cooperation aimed to increase the cattle farm business to be more competitive, efficient and sustainable as a part of commercial supply chain that globally compete. He also asserts that the cooperation program is one of the examples of Australia commitment to increase the productivity through skills in cattle breeding in Indonesia. This is also supported by the high demand of cattle meat that increasing about 4% every year.

The cooperation also gives Australia an advantage in investment chance and the new market opening for Australian bloodstock cow. Through this cooperation, Indonesia gained aid package about Rp 594 billion (AUS$ 60 million) from Australian government. Thomas Lembong added that the Indonesia-Australia partnership program on cattle farming industry is a pilot program for various commercial cattle breeding with national private partner. Commercially, the program is focused on many little farming cooperative groups to do the big scale breeding cattle model economical rating that is better and sustainable. “This partnership will support the development of ongoing sustainable farming and to strengthen the strong trading and investment relation with Australia.” said Lembong.

In addition to cattle, the partnership program will continuously give broad support on the development of business management, pasture, cattle farm enhancement and supervision system. The program will also give evaluation to improve and gain a better breeding model commercially for Indonesia. Previously, Indonesia and Australia partnership on cattle farm and red meat commodity is one of the early results of bilateral trading negotiation for Indonesia–Australia Comprehensive Economic Partnership Agreement which has been running since 2015 with project value about AUS$ 4 billion. Source : BKPM