Indonesia to buy 1m hectares of Australian farmland
The Indonesian government has approved a plan to buy one million hectares of Australian farmland, a plot four times the size of the Australian Capital Territory, to breed its own cattle.
The move should solve Indonesia’s beef supply problem as local production fails to keep pace with domestic demand in a “permanent solution”. The cattle would be bred in Australia and brought to Indonesian feedlots. The Australian cattle station would be run, or at least overseen, by one of Indonesia’s state-owned enterprises such as Rajawali Nusantra Indonesia.
Once the Indonesians decide on an appropriate piece of land, Australia’s Foreign Investment Review Board would have to rule on whether a sale could go ahead.
Indonesia has put pressure on itself to stick to its self-sufficiency policy, even though it has been blamed for driving up food prices and will not meet its target. In response to the price hikes, particularly for beef, the government has been continually “borrowing” from the next quarter’s import quotas.
The Indonesian government has approved a plan to buy one million hectares of Australian farmland, a plot four times the size of the Australian Capital Territory, to breed its own cattle. The move should solve Indonesia's beef supply problem as local production fails to keep pace with domestic demand in a "permanent solution". The cattle would be bred in Australia and brought to Indonesian feedlots. The Australian cattle station would be run, or at least overseen, by one of Indonesia's state-owned enterprises such as Rajawali Nusantra Indonesia. Once the Indonesians decide on an appropriate piece of land, Australia's Foreign Investment...
The Indonesian government has approved a plan to buy one million hectares of Australian farmland, a plot four times the size of the Australian Capital Territory, to breed its own cattle.
The move should solve Indonesia’s beef supply problem as local production fails to keep pace with domestic demand in a “permanent solution”. The cattle would be bred in Australia and brought to Indonesian feedlots. The Australian cattle station would be run, or at least overseen, by one of Indonesia’s state-owned enterprises such as Rajawali Nusantra Indonesia.
Once the Indonesians decide on an appropriate piece of land, Australia’s Foreign Investment Review Board would have to rule on whether a sale could go ahead.
Indonesia has put pressure on itself to stick to its self-sufficiency policy, even though it has been blamed for driving up food prices and will not meet its target. In response to the price hikes, particularly for beef, the government has been continually “borrowing” from the next quarter’s import quotas.
