Deputy Prime Minister and Agriculture Minister Barnaby Joyce and Chairman of the Indonesia Investment Coordinating Board Thomas Lembong, said the initiative would help develop the Indonesian cattle industry, boost investment opportunities and enhance trade between the two nations.

"We are working together to develop a more competitive, efficient and sustainable Australia-Indonesia red meat and cattle industry as part of a globally competitive, commercial supply chain," Joyce said.

"As demand for beef in Indonesia continues to rise, this project is one more example of Australia's commitment to work with the Indonesian industry to increase productivity through the transfer of skills and expertise in cattle breeding.

"It will generate strong investment opportunities and establish important new markets for Australian breeding stock."

Lembong said the program would pilot a range of different commercial scale breeding models with private partners and commercially focused cooperative smallholder groups to assess economically viable and sustainable larger scale breeding models.

"This partnership will assist the ongoing development of sustainable agricultural industries in Indonesia and further strengthen our already strong trade and investment relationship with Australia," Lembong said.

As part of this project, Australia will supply 2000 breeding heifers and 100 bulls to selected partner sites. In addition to the cattle, the program team will be providing extensive support on pasture development, business management, cattle husbandry, and monitoring and evaluation systems to find and promote commercially viable breeding models for Indonesia.

Cooperation in the red meat and cattle sector is one of the early outcomes of the bilateral trade negotiations for the Indonesia Australia Comprehensive Economic Partnership Agreement, IA-CEPA. More information is available at www.iaccbp.org.