May 7, 2014

Jakarta city's administration and the East Nusa Tenggara Timor (NTT) government have signed a memorandum to improve the supply of beef from NTT to the capital to meet rising demand.

Jakarta Governor Joko Widodo said the agreement was also aimed at cutting down the capital's reliance on imports.

NTT Governor Frans Lebu Raya, said there were plans to invest IDR2 trillion (US$173 million) constructing new slaughterhouses and cattle breeding facilities in the region.

Indonesia currently relies heavily on Australia for its beef and live cattle. President of the Northern Territory Cattlemen's Association (in Australia), David Warriner, says the growing demand for beef in Indonesia is creating opportunities for both Australian and Indonesian cattle producers.

Warriner and other members of the NTCA toured the NTT province last year. He says there are many challenges to overcome before NTT can boost its production, but he welcomes the agreement with Jakarta and says it will be good for the region.