The Indonesian government has approved a plan to buy a million hectares of Australian farmland to breed its own cattle.
The country's so called self-sufficiency policy has been blamed because it restricted imports from Australia and elsewhere.
To lower prices Indonesia's eased some restrictions until the end of 2013, however, local production has been unable to keep pace with domestic demand, prompting Indonesia's
Government's come up with a more permanent solution.
The State Enterprises Minister has told journalists cabinet has now approved a plan to buy Australian farmland.
Dahlan Iskan is quoted by local media saying it is cheaper to breed cattle in Australia and then bring them to Indonesian feedlots.
He says the plan would be in addition to Indonesia's domestic breeding program.
Once appropriate land is found, Australia's Foreign Investment Review Board would have to allow Indonesia to buy it. Indonesia Correspondent George Roberts