Light At End of Tunnel For Devastated Live Cattle Industry

Light At the End of the Tunnel For Devastated Live Cattle Industry

As the leaders of Indonesia and Australia sit-down for talks in the Indonesian city of Bogor, Indonesia's State Enterprises Minister Dahlan Iskan has announced that he was planning to select one of three state owned enterprises (PT Mega Eltra, Perum Bulog and PT Rajawali Nusantara Indonesia (PT RNI) who would then be tasked to purchase a one million hectare 'ranch' (or similar) in Australia.

Last night that Mr. Ismed Hasan Putro (director) of PT Rajawali Nusantara Indonesia said his company was ready to develop a 'ranch' business (through joint investments) in Australia as State Enterprises Minister Dahlan Iskan requested.

His company is one of the three state-owned enterprises who are preparing to take an equity interest in Australia's cattle stations with a view to strengthening the supply chain and providing Indonesia with increased supply security.

This announcement is line with Indonesia's aim to take a partnership in the live cattle and meat supply chain and will be finalised during talks between PM Kevin Rudd and Indonesia's President Susilo Bambang Yudhoyono today.

"We believe this is a good move for both Australia and Indonesia and will only help rebuild trust and co-operation with the entire agriculture sector between our two countries" said Ross Taylor, chairman of the Indonesia Institute. "With Australian cattle stations facing devastation and simultaneously Indonesians facing meat shortages and price increases of 100%, the is a mutual benefit in getting this 'crazy'  lose-lose situation resolved. The only impediment has been the forthcoming elections in both countries which has dampened the desire to actively progress this critical issue, however these high level talks should resolve this obstacle."

Mr. Taylor said that  both governments now have the opportunity to put the mistakes (on both sides) of the past behind them and move quickly to facilitate 'partnership' arrangements whereby two-way investment in the supply chain will see the Australian cattle industry not only recovering but, with careful planning, increasing in its size and value.

"And that will be good for Indonesia as we can then look at 'adding value' to meat production in Indonesia -  along with Australian investment and knowledge - with a view to exporting out to third-party countries thus substantially increasing Indonesia's meat processing industry." said Mr. Taylor.

This is what we have needed for so long as it produces a 'win-win' outcome for both Indonesia and Australia.

ENDS

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