October 7, 2014

 
Indonesian firm buys cattle station in Australia's Northern Territory

Australia's Northern Territory seems to have an allure for Indonesian dairy investors as another firm from Southeast Asia's largest economy has acquired a 9,620-hectare freehold block, making it the third Indonesian foray into the sparsely populated territory in a year.

"They've shown great faith in the northern cattle industry and they've purchased this property to background cattle before they take them up to Indonesia," said Andy Gray, of Territory Rural.

The yet to be named Indonesian company bought the Edith Springs property, located near Katherine settlement, for US$4 million. It has 15 km of Edith River frontage, bitumen access, and backs onto the Stuart Highway, where the Northern Territory's population is concentrated.

The buyer is the third Indonesian company to invest in the Northern Territory's cattle industry in the past 12 months, after Santori purchased last year Inverway and Riveren stations in the Victoria River District, and another Indonesian firm bought Willeroo Station near Katherine from the Sultan of Brunei.

Gray said he foresees more sales this year to foreign companies.

"There's strong interest from the international sector... and I expect we'll see further interest from our northern neighbours in Indonesia," he said.

The company is expected to grow fodder crops to feed cattle using the property's 360-megalitre water licence.