Indonesia approves plan to buy 1 million hectares of Australian grazing land
Indonesia has moved to solve its beef supply problems by approving a plan to buy one million hectares of Australian farmland, a plot four times the size of the ACT.
Beef prices in Indonesia have hit record prices over the past year as local production fails to keep pace with domestic demand.
The country's so-called self-sufficiency policy has been blamed because it restricted imports from Australia and elsewhere.
To lower prices Indonesia has eased some restrictions until the end of 2013, but the government has now come up with a more permanent solution.
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.
s a result the purchase of Australian land would allow Indonesia to say it is still achieving self-sufficiency by providing its own beef, even though it is grown offshore.
While Australian cattle farmers would argue there is a potential supply of Australian cattle that could be used to meet demand by lifting quotas permanently, that would also have the Indonesian government "losing face" by seeming to back down on the policy.
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Wow they get 600 mil per annum fom Australia so they can buy up large tracts of Australian Land. That's probably where the Kidman property is going. Goodbye Australian Beef Industry.
