Owners keep options open

The Indonesian Government will go on a $33 million shopping spree for prime cattle country in northern Australia to establish a “beachhead” investment in the beef industry.

Susilo Bambang Yudhoyono’s Government has made food security a top priority and the news came as Prime Minister Kevin Rudd arrived in Jakarta last week to improve two-way trade and seek the President’s help to stop asylum- seeker boats.

It is understood Indonesia’s state Enterprises Minister Dahlan Iskan will pick one of three State-owned enterprises to buy a one-million-hectare cattle station in WA, the Northern Territory or Queensland.

One of the three companies short-listed is Indonesia’s Board of Logistics, Perum Bulog, which has been told by Dr Yudhoyono to stabilise the rocketing price of beef.

The company last week began importing 3000 tonnes of processed beef from Australia to suppress beef prices for the approaching holy month of Ramadan, when consumption rises.

Yakka Munga, a station about 100km east of Broome, has been in the sights of an Indonesian Government-backed syndicate, but owner Nathan Webb-Smith said negotiations were slow.

Mr Webb-Smith said his representatives in Indonesia were pursuing the announcement. “We are just waiting to see how serious they are,” he said.

“There is a lot of politics and a lot of talk, but that’s all it seems to be — typical government departments — all talk and not much action.”

“I am keeping in touch with all my contacts in Indonesia.

“I have said to all groups that whoever comes forward first gets what they want, but it is just so frustratingly slow.”

Indonesia halved the annual live cattle import quota from Australia to 267,000 beasts in response to Australia’s suspension of the trade in June 2011, when ABC’s Four Corners exposed cruelty in abattoirs.

The decision crippled many cattle stations’ finances, and the Northern Territory Cattlemen’s Association estimates 40 per cent of businesses in the Territory are for sale.

The Indonesian Government officially wants the nation of 250 million people to be self-sustainable in beef supply, but with a middle class of 80 million — and growing — some believe the goal is unrealistic.

With China also eyeing off potential agricultural investments in northern Australia, Indonesia’s focus is now on taking financial stakes in properties to not only guarantee supply, but reduce the chances of any future live cattle trade being suspended.

Indonesian Ambassador Nadjib Riphat Kesoema, who is in Jakarta for Mr Rudd’s visit, confirmed one option being considered is for a Stateowned Indonesian company to buy cattle stations outright.

“But the best option is a joint venture — either here or in Indonesia,” he said.

NTCA executive director Luke Bowen said he would be disappointed if the Federal Government’s desire for more cooperation from Indonesia in stopping asylum-seeker boats interfered with returning the live cattle trade to its former strength.