NORTHERN live cattle shipments to Indonesia are expected to resume next week after 2026 import permits were formally distributed to Indonesian importers on Monday.
Permits started trickling out yesterday for an initial 2026 allocation of 600,000 cattle, as foreshadowed last week.
Thirty or so importers who are members of Gapusfindo, the Indonesian Beef Cattle Feedlot Association, are understood to have received permit volumes in line with expectations.
The 600,000-head figure is regarded as a starting point, with compliant importers expected to be able to apply for additional permits later in the year.
‘Use it or lose it’ enforced
However, a number of smaller importers are reported to have received sharply reduced allocations after failing to meet Indonesian Government permit compliance requirements.
Under Indonesia’s “use it or lose it” policy, lot feeders must have utilised a significant proportion of their previous permit allocation and imported breeding cattle equivalent to at least three percent of feedlot capacity to qualify for a full permit allocation in the new year.
Importers that failed to meet those thresholds have reportedly received allocations as small as 1,800 head or less under the permits issued this week.
Australia exported 583,418 head to Indonesia in 2025, which was the largest annual volume to the major market since 2019.
Strong demand, tight supply
With new year permits now in hand, inquiry for cattle from Indonesia is said to be good, while supply is tight across the north, with some estimates suggesting as many as 100,000 head may have been lost in New Year flooding across parts of Northern and Central Queensland.
Pricing for export feeder steers ex-Darwin stands at $4.80c/kg liveweight for January shipping, with strong rates likely to prevail until first round musters reload supply in March/April, depending on dry season timing.
Helping to underpin Indonesian demand in 2026 are sound economic conditions and President Prabowo Subianto’s target for Indonesia’s Free Nutritious Meal (MBG) program to reach all villages across the country by the end of 2026.
“God willing, by 2026 all villages in Indonesia will receive the MBG program. Hopefully, it can be achieved even sooner,” Prabowo said at a recent food self-sufficiency festival.
He said around 55 million Indonesian children received free nutritious meals in 2025, and in 2026 he aims to extend the program beyond school children to include all Indonesian children, pregnant women, and elderly citizens.
Boxed beef permits cut
Meanwhile, unrest continues among Indonesia’s private meat importers following the release of boxed beef import permits for 2026.
Private importers received permits for 180,000 tonnes of boxed beef last year, but that volume has been cut to just 30,000 tonnes to be shared between Australia, New Zealand, the United States and other suppliers in 2026.
State-owned enterprises will be permitted to import a total of 250,000 tonnes, including 100,000 tonnes from India, 75,000 tonnes from Brazil and 75,000 tonnes from other sources which have not been defined. A further 17,000 tonnes has been allocated to manufacturing industry permits.
Australian exports of boxed beef to Indonesia have totalled 84,000 tonnes and 66,500 tonnes in the past two years.
Private meat importers have warned the sharp reduction in boxed beef quotas could trigger job losses and higher domestic beef prices.
Indonesian Meat Entrepreneurs and Processors Association (APPDI) executive director Teguh Boediyana said the reduced quota was not commensurate with industry demand and had raised serious concerns about business continuity.
He said the allocation must be divided among about 105 private companies, leaving each with a very limited share, and warned layoffs were likely unless the government reviewed the policy.