The relationship between Indonesia and Australia becomes stronger when both countries grow mutual trade about USD17.8 billion between 2018 and 2019. The appeal of cattle investments Indonesia – Australia also increases and becomes higher these days.
Both Australia and Indonesia are members of various organizations like IA-CEPA (Indonesia – Australia Comprehensive Economic Partnership Agreement), the ASEAN Free Trade Area, APEC (Asia-Pacific Economic Cooperation), ASEAN Regional Forum, G20, and so on.
The Appeal of Cattle Investments Indonesia-Australia
What makes the relationship between both nations stunning? As we may have known, Australia has been exporting cattle to Indonesia for years. However, the journey between Indonesia and Australia is very fascinating. Below is a timeline of the relationship journey between Indonesia and Australia.
Indonesian imports of cattle and beef from Australia began in the 1990s. Every year, Indonesia imports cattle and beef about USD12 billion. Until now, over 6.5 million cattle have been exported from Australia to Indonesia.
The primary exports from Australia to Indonesia include livestock (cattle and beef), wheat, cotton, aluminum, and petroleum. On the other hand, major exports of Indonesia to Australia include aluminum structures, steel, iron, gold, refined petroleum, and crude.
If you want to invest in cattle, you should learn about Law No. 18/2009 adopted by Indonesia. It is about animal health and animal husbandry.
That law stated that the country can import cattle only from countries that are free from foot and mouth diseases. In short, that law favored Australia as the major source of beef for Indonesia.
There was a documentary called Four Corners that highlighted animal cruelty that happened in Indonesian abattoirs. The documentary was broadcasted in May 2011 and highlighted crucial issues about the treatment and also welfare of live export cattle from Australia to Indonesia.
The response of the public to this documentary made Australia ban live exports to the country in June 2011. This decision attracted criticism from the federal opposition and brought negative effects to invest in cattle. Soon after that, Indonesia threatened to take this dispute to the WHO.
In November 2013, the spying scandal of Australia on Indonesia pushed Indonesia to review the trade policy between Indonesia and Australia. Unfortunately, it includes the policy of live cattle trade. The Coordinating Minister for Economic Affairs of Indonesia said that Indonesia shouldn’t depend only on one country.