Indonesia slashes cattle imports from Australia
AFP
Jakarta, Indonesia: Indonesia has dramatically slashed imports of Australian cattle, an official said Tuesday, sparking concerns that tensions between the neighbours are now affecting trade ties.
Jakarta will import 50,000 cattle in the third quarter, from July to September, a sharp reduction from 250,000 in the previous quarter and 180,000 in the same period last year, the Indonesian trade ministry said.
Indonesia is the biggest market for Australia's live export trade, which is worth about US$1 billion and employs thousands of people.
The news added to concerns about fraying ties between the neighbours, which have been hit by Indonesia's execution of two Australian drug smugglers in April.
‘I sincerely hope that our relationship with Indonesia at a political level is not the reason driving this reduction in Indonesia imports of Australian cattle,’ said Bill Shorten, leader of Australia's opposition Labor party.
However Partogi Pangaribuan, the head of foreign trade at the Indonesian trade ministry, denied that recent tensions were behind the move to slash imports.
‘We imported 250,000 in the second quarter and we think that should be enough until August or September and domestic supply is also sufficient,’ he told AFP.
Under Indonesian law, cattle can only be imported if domestic supply is insufficient, he said, adding that more could be imported in the fourth quarter. Indonesia has been pushing for several years to achieve self-sufficiency in its beef supply.
The executions of traffickers Myuran Sukumaran and Andrew Chan prompted Canberra to temporarily recall its ambassador from Jakarta.
Recent allegations that Australian officials paid to turn a boatload of asylum-seekers back to Indonesia have also added to tensions.
In 2011 Australia temporarily banned sending cattle to Indonesia after a documentary revealed cruel treatment of cows in Indonesian abattoirs.
The move caused an outcry among Australian exporters, while encouraging Indonesia to seek out other sources of cattle imports and improve its own livestock industry.