January 29, 2026

 

Australia's cattle exports to Indonesia expected to be affected by lower permitted price for market-ready cattle

 

 

Australian cattle exports to Indonesia are expected to come under new pressure after the Indonesian government slashed the price Indonesian feedlots can sell market-ready cattle for.

 

The government is concerned about the price of several important food staples for Indonesian consumers during the forthcoming Ramadan and Labaran holy month from mid-February to mid-March.

 

To control prices for consumers during the peak consumption period, it had previously set a maximum selling price of Rp58,000 (US$3.48) for slaughter-weight cattle out of Indonesian feedlots.

 

Indonesian feedlots have faced a squeeze in recent months between having to pay higher prices of US$4.80/kg liveweight to secure Australian cattle in the lead-up to Ramadan, and the maximum price at which the Indonesian government will allow them to sell the finished stock from their feedlots.

 

Many did their sums for this forthcoming Ramadan period at the Rp58,000 (US$3.69) maximum price, but now find they are being squeezed further, with the maximum selling price now dropped to Rp55,000 (US$3.50) just a month out from the major sales period.

 

At a meeting in Jakarta on January 22, Indonesia's Minister of Agriculture reportedly told Indonesian cattle importers, among others, that the availability of cattle and the price at which they are sold will be monitored weekly throughout the holy month.

 

If any feedlot sells above this price, the government has stated it will revoke its import permit. It further also warned that businesses found to be in breach of pricing rules may be subject to criminal charges.

 

The move has directly impacted the commercial viability of Australian cattle imports and led to decisions by some importers to immediately cut back orders planned for coming weeks and months, according to sources close to the Indonesian feedlot sector who were contacted by Beef Central.

 

One source close to the trade said there is a sense that the supply and demand dynamics that affect the price of cattle from Australia — such as the recent severe flooding that has resulted in the drowning and exposure deaths of an estimated 100,000 cattle in the key north-west Queensland supply area — are not well understood in Jakarta.

 

There have been major demonstrations in response to new import policies.

 

The Indonesian government has also created displeasure in the boxed meat import trade by transferring most frozen beef import permits from private companies to state-owned enterprises.

 

Last year, private enterprises imported about 150,000 tonnes of boxed beef into Indonesia (including about 84,000 tonnes from Australia), while state-owned Enterprises imported 30,000 tonnes.

 

Boxed beef permits for 2026 have not yet been formally issued, but the Indonesian government has announced that private enterprises will receive permits for just 30,000 tonnes, while state-owned enterprises will receive permits for 250,000 tonnes.

 

Indonesia's Minister of Agriculture, Andi Amran Sulaiman, has told Indonesian media that this was done so the government can quickly intervene in price fluctuations in the market.

 

Despite those changes, there have been no indications the Indonesian government is placing caps on the maximum price that imported boxed beef can be sold for, as it is for live cattle.

 

Australian Livestock Exporters' Council chief executive officer Mark Harvey-Sutton said Indonesian lot feeders have been caught in the middle between a higher livestock price in Australia and a desire from the Indonesian government to lower prices to the consumer, and for now, feedlotters are continuing to seek to engage with the Indonesian government on the issue.

 

— Beef Central