November 28, 2013

Indonesia to source beef from India, Brazil

The dispute with Australia over spying allegations has accelerated Indonesia's desire to source beef from other countries, said Indonesian Trade Minister, Gita Wirjawan.

All communications between the two countries over broader bilateral trade issues had ceased, according to Gita. In the meantime, Australian and Indonesian officials are only communicating to each other in multilateral forums such as the World Trade Organisation.

Australia, which is free of foot and mouth disease (FMD), has been one of the key beef suppliers to the Indonesian market. The live cattle trade alone is worth US$174 million. However, last week, Gita requested that the parliament pass laws which allow beef to be imported from India and Brazil despite the danger of FMD.

The minister confirmed he had made the request after the fallout over Australia's eavesdropping on private conversations of President Susilo Bambang Yudhoyono and his wife, Ani, in 2009.

The comments come as President Yudhoyono called a "limited cabinet" meeting to which his foreign affairs adviser, Teuku Faizasyah was invited. However, key ministers will not be there, and there is no confirmation that a letter of explanation, sent by Australian prime inister, Tony Abbott, will be discussed.

Gita is the first Indonesian minister to comment on the row since last week. Temporary boycotts against Australian interests, including police action against people smugglers and co-operation on cyber-crime, remain in place.

Federal Agriculture Minister, Barnaby Joyce, said that the Australian government remained committed to strengthening ties with Indonesia on the beef cattle trade, despite diplomatic strains.