To meet Indonesia's target to become self sufficient in its beef meat requirement by 2014, Jakarta said it is considering running a cattle breeding farm in Australia. The Indonesian government pointed to lower production cost as the reason behind the plan.
State-Owned Enterprises Minister Dahlan Iskan explained it would cost the Indonesian government only $309 to produce a calf in Australia which is only one-third of the cost in Indonesia.
However, he said fattening the calf would be cheaper and quicker when done in Indonesia.
He said there is no need to create a new state-owned company for that purpose. Instead, the government would tap the existing ones such as Berdikan, a livestock company, and Rajawali Nusantara Indonesia, an agribusiness, to managed the planned farm in Australia.
As part of Indonesia's beef supply self-sufficiency goal, the government reduced the 2012 import quota for cattle by one-third and beef meat by almost two-thirds. For 2013, there is another 30 per cent cut in cattle import quota and 6 per cent for beef meat amid a 13 per cent increase in beef consumption domestically.
To make up for the loss of the Indonesian market, the Australian Livestock Export Council said it is looking for other markets.
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