Jakarta. A total of 39 Indonesian businesses have collectively invested Rp 2.24 trillion ($135.7 million) to import more than 20,000 live cattle from Australia in the first half of 2025, according to data released by the Agriculture Ministry. The effort forms part of a broader national strategy to achieve self-sufficiency in meat and dairy production, supporting President Prabowo Subianto’s flagship free nutritious meal program.

The imported cattle -- 20,418 head in total -- were shipped from Australia via sea and air in stages, and are being raised domestically for meat and milk production. The livestock includes 9,736 dairy cows and 10,682 beef cattle.

The investment comes amid sweeping policy reforms by the Indonesian government aimed at revitalizing the livestock sector. These include the removal of previous import restrictions on live cattle, as well as a suite of investor-friendly measures such as import duty exemptions, tax holidays, subsidized credit at 3 percent interest, land lease incentives, and infrastructure support.

According to the Agriculture Ministry’s Directorate General of Livestock and Animal Health, as of June 3, 2025, private-sector commitments totaled 48,754 dairy cows from 193 investors and 52,514 beef cattle from 82 investors.

Driving Toward Self-Sufficiency
The large-scale import initiative aligns with the government’s goal of significantly expanding Indonesia’s domestic cattle population. Speaking last week, Deputy Agriculture Minister Sudaryono said that the private sector is being invited to play a central role in boosting local cattle numbers to meet growing demand for meat and dairy.

“We see a major need for beef and milk to support the free nutritious meal program. Therefore, we’re opening investment opportunities for both domestic and foreign investors,” Sudaryono said.

He clarified that the state budget is not being used to purchase livestock directly; instead, the government is positioning itself as a facilitator for private-sector investment in live cattle breeding and production -- a shift from past practices that focused on meat imports.

The current strategy aims to resolve long-standing supply shortfalls by building a productive cattle base in Indonesia, particularly through breeding programs and sustainable farming models.

In the near term, the government plans to import an additional 2,000 pregnant cows as part of its effort to reach a target of 1 million cattle by 2029.

The new investment wave follows recent statements from Coordinating Minister for Food Affairs Zulkifli Hasan, who confirmed the removal of quotas on live cattle imports. The deregulation allows importers to bring in livestock without volume limits, whether for fattening, slaughter, or dairy production -- a move expected to further invigorate the domestic livestock industry.