Indonesia eyes import options

This would involve Indonesia re-categorising countries into zones. Zones that are considered disease-free would be able to export cattle to Indonesia, even if the country the zone sits within has a disease rating.

"We can for example import live cattle from India as long as the country is on the designated zone and the live cattle are free from diseases,” Indonesia’s Coordinating Minister for the Economy, Darmin Nasution, said at the weekend.

The minister, cited by Indonesian publication Tempo.co, also said that Indonesia’s live cattle import has so far depended on Australia “only because according to Law Number 18 of 2009 on Husbandry and Animal Health, it says that import of live cattle may only be done from countries that are free from foot and mouth disease”.

"If it has to be specific based on countries, the only country that is free from the disease is Australia," Darmin said.

Earlier attempts to open up legislation to allow live trade with disease-affected countries were voted down in Indonesia’s Parliament.

Alison Penfold, the chief executive of the Australian Live Exporters Council (ALEC), has heard the zone idea floated in the past.

She recalls that it involved quarantine islands, which with transport from regions like India or South America would add considerable costs to the proposal.

Nor does Ms Penfold think Australia’s disease-free status to be the only compelling argument in favour of the Australia-Indonesia beef alliance.

“Indonesia has on its doorstep the best beef partner it could have,” Ms Penfold said.

“There has been 40 years of successful trade, and a huge investment by Australia in preparing northern Australia to supply Indonesia. I would hope, with increased dialogue, that there will be more recognition of the trade’s value.”

ALEC has invited several Indonesian ministers, including Darmin, to its LIVEXChange 2015 conference in Darwin in November.

“We just want to work with them,” Ms Penfold said.

“This is a supply chain. We have to get over this concept of one country selling to another. It’s a supply chain where the synergies are as close to perfect as you can get. Australia’s northern land mass is very good at producing calves, and Indonesia is close to the world’s best, or the world’s best, at fattening and finishing cattle in the tropics.”

Indonesia’s Trade Minister has apparently approved permits for the import of 200,000 cattle from Australia in the last quarter of 2015, but exporters are yet to get the permits in their hands.