Economics

Australia’s Agricultural Trade with Indonesia Gains Momentum

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Minister for Agriculture, Fisheries and Forestry Julie Collins’ visit to Jakarta on July 31, 2025, secured a $100 million meatmeal trade deal and strengthened biosecurity ties with Indonesia, boosting Australia’s $5.5 billion agricultural export market.

On July 31, 2025, Australia’s Minister for Agriculture, Fisheries and Forestry, Julie Collins, completed a three-day visit to Jakarta, reinforcing Australia’s position as Indonesia’s fifth-largest agricultural export market, valued at $5.5 billion in 2023-2024. The visit, following Prime Minister Anthony Albanese’s May trip, culminated in a bilateral protocol reopening the $100 million meatmeal trade, halted since 2018 over Indonesia’s concerns about traceability and packing compliance. Signed with Indonesian Minister of Agriculture Andi Amran Sulaiman, the agreement supports Australia’s goal to grow its agricultural sector to $100 billion by 2030, while aiding Indonesia’s poultry and aquaculture industries.

Collins, joined by Australian Livestock Exporters Council (ALEC) Chair David Galvin and CEO Mark Harvey-Sutton, toured the PT Lembu Jentan Perkasa feedlot in West Java to review live cattle supply chains. Harvey-Sutton highlighted the visit’s significance, stating, “It shows Indonesia’s critical role in supporting Australian cattle producers and local jobs.” The deal aligns with Indonesia’s Nutritious Meals Program, aiming to feed millions of schoolchildren, with Australia exporting nearly 500,000 cattle in 2024. Six Australian rendering facilities are now approved for export, following successful Indonesian audits, as confirmed by the Department of Agriculture, Fisheries and Forestry (DAFF).

Biosecurity cooperation also advanced, with Collins and Indonesian Minister of Maritime Affairs and Fisheries Sakti Wahyu Trenggono reinforcing joint efforts on shared fish stocks and aquatic animal health through regional fisheries bodies. The Australian Trade and Investment Commission (Austrade) will lead a food and agriculture mission to Indonesia in late 2025, aligning with the Southeast Asia Economic Strategy to 2040, to foster business connections.

However, industry voices, including the National Farmers’ Federation, caution that federal priorities must balance international trade with domestic challenges, such as rising input costs for farmers. Critics argue the focus on export markets could strain local resources without broader economic reforms. Collins emphasized Australia’s reliable agricultural exports, stating, “Our products bolster Indonesia’s food security.” The agreements mark a strategic step for WA’s economy, but stakeholders urge vigilance to ensure local producers aren’t sidelined. Businesses can explore opportunities via Austrade’s upcoming mission.

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