Indonesia-Australia Partnership on Food Security Communique 7 August 2014

Mahendra Siregar, Chairman of the Indonesia Investment Coordinating Board, and the Hon Barnaby Joyce MP, Australian Minister for Agriculture, as well as the Indonesian and Australian government and business Partnership members met in Brisbane on 7 August 2014 for the second meeting of the Indonesia-Australia Partnership on Food Security in the Red Meat and Cattle Sector (the Partnership).

Chairman Siregar and Minister Joyce both addressed the Partnership and emphasised the importance that their governments place on building stronger ties, strengthening communication and improving prospects for long term investment and trade between Indonesia and Australia. Their messages reinforced the Partnership as going beyond the trading relationship to being an important forum that will build the relationship and contribute to long lasting international and domestic benefits for the red meat and cattle sectors in both countries. 

Chairman Siregar and Minister Joyce signed a Joint Declaration reaffirming their respective governments’ commitment to achieving the Partnership’s objectives.

The Partnership endorsed the Strategic Framework which will guide the short and medium term priorities of the Partnership. The immediate priorities are to focus on the sectors of breeding, processing and logistics (transport). These may change over the life of the Partnership as its work evolves and the Indonesian industry develops. Agreement was also reached on the Operating Guidelines of the Partnership, providing an agreed approach to developing and approving project proposals.

Underpinning both the Strategic Framework and the Operating Guidelines will be three small technical working groups comprising Partnership representatives from each country. The working groups will provide expert advice and recommendations on the priority areas and on developing “early harvest” project proposals.

Reflecting the discussion with Chairman Siregar and Minister Joyce, members agreed that the Partnership provides an invaluable forum for governments and industry to exchange information on priorities for the red meat and cattle sector and also to deal with issues that could become an impediment to the development of the sector.

Industry Partnership members discussed initial proposals for the working groups to develop into firm actions:

  1. The working group on breeding will bring forward proposals for pilot projects of prospective business models that will develop Indonesia's commercial breeding capacity: an integrated cattle-oil palm business model; and consideration of a proof of concept semi-intensive pastoral business model. The aim is to find technically proven and financially feasible investment models for commercial breeding that can reduce the production costs of commercial heifers and sustainably increase Indonesia’s cattle population.

  2. The working group on processing will focus on improving the quality of slaughterhouse (abattoir) processes in Indonesia and their products through skill development and by modernising standard operational and management procedures used in abattoirs

  3. The working group on logistics and transport will identify industry best practice and document guidelines aimed at improving cattle handling and transportation facilities at dedicated cattle seaports. The objective is to improve handling and management of cattle (and therefore animal welfare outcomes) and to reduce transportation and handling costs of cattle.

The Partnership received briefings on the progress of approved projects, including the Northern Territory Cattlemen’s Association (NTCA) Pastoral Industry Student Program, and the Skills Development Program proposed by Indonesia’s Ministry of Agriculture’s (MoA). The NTCA program has completed its Indonesian student placement in Australia successfully, with its final phase of reciprocal exchange from Australia to be completed in 2014. 

The MoA Skills Development Program is now going through formal funding approval processes. It will provide theoretical and applied training in Australia to build knowledge, skills and technology transfer within Indonesia’s red meat and cattle production sector. The program will target three streams related to red meat and cattle production:

  • Indonesian graduates/entrepreneurs who have completed tertiary studies in animal husbandry or agricultural science and/or are establishing a career in cattle production;
  • high performing employees within the production and processing industry; and
  • high performing graduates already employed within the Ministry of Agriculture.

The co-chairs agreed to a report outlining the development and successes of the Partnership which will be used by Chairman Siregar and Minster Joyce in their reports to their respective Heads of Government.

Partnership members agreed that it is important to keep the momentum that has developed in the priority areas of breeding, processing and logistics. The three working groups will meet over the coming weeks to refine their objectives for these three components of the supply chain and to progress potential projects and activities.

The chairs of the working groups and the Partnership co-chairs will meet inter-sessionally to review progress and, as appropriate, endorse projects for implementation.

The next formal meeting of the Partnership will take place in late 2014 or early 2015.


Attendees

Australian delegation

Government

  • Simon Murnane (co-chair) – Assistant Secretary, Trade and Market Access Division, Department of Agriculture
  • David Binns – Assistant Secretary, South East Asia Division, Department of Foreign Affairs and Trade
  • Kym Hewett – Minister (Commercial) & Senior Trade Commissioner, Austrade

Non-Government

  • Chris Barnes, Managing Director, PT ICON International Communications Indonesia
  • Catherine Marriott, Managing Director, Influential Women
  • Terry Nolan, Director, Nolan Meats PTY LTD
  • Gary Stark, Managing Director, Stark Engineering Pty Ltd & Warwick Cattle Crush Company
  • Ken Warriner, AM Chairman, GRM International was an apology for the meeting

Observer

  • Dean Merrilees, Minister Counsellor (Agriculture), Australian Embassy in Jakarta
  • John Ackerman, Indonesia Regional Manager, Meat and Livestock Australia (Jakarta)

Indonesian delegation

Government

  • Himawan Hariyoga (co-chair) – Deputy Chairman for Investment Promotion, Indonesia Investment Coordinating Board
  • Diah Maulida – Deputy Coordinating Minister for Food and Bioresources, Coordinating Ministry for Economic Affairs
  • Syukur Iwantoro – Director General for Livestock and Animal Health, Ministry of Agriculture
  • Muhammad Zamkhani – Deputy Minister for Agro Business and Strategic Industry, Ministry of State-Owned Entreprises
  • Didi Sumedi - Director of Export Industry and Mining Product, representing Partogi Pangaribuan - Director General for Foreign Trade, Ministry of Trade
  • Donna Gultom – Indonesian Trade Attaché to Australia in Canberra, Embassy of Indonesia in Canberra

Non-Government

  • Kris Sulisto – President, Indonesia Australia Business Council
  • Samuel Wibisono – President Director, PT Santosa Agrindo
  • Dimas - Vice President Investment and Procurement, representing Tumiyono – President Director, PT Widodo Makmur Perkasa
  • Irawan Eko Sulistiono – President Director, PT SMD Agribisnis Indonesia
  • Juan Permata Adoe – Deputy Chairman for Food and Cattle Industry, Indonesia Chamber of Commerce and Industry (Kadin)

Observer

  • Jody Koesmendro – Secretary General, Dewan Daging Nasional
  • Dicky Adiwoso – President Director, PT Agro Giri Perkasa
  • Jimmy Halim – PT Intraco Penta Wahana
  • Siti Marwa – Director of Finance and Administration, PT Berdikari

Secretariat

  • Ian Mortimer, Department of Agriculture
  • Christine Shannon, Department of Foreign Affairs and Trade
  • Ikmal Lukman, Indonesia Investment Coordinating Board