MEAT and Livestock Australia will open a new office in Indonesia to service Australia's third-largest beef export market in time for Christmas.

MLA general manager of international markets and economic services, Peter Barnard, said the new office in Jakarta would be "about providing support and creating a partnership between the export industry in Australia and the users of the product in Indonesia".

More Indonesian consumers are demanding freshly processed beef from traditional wet markets and chilled and frozen beef from modern supermarkets.

Mr Barnard said this meant Indonesia, with a population of 237 million, had become increasingly reliant on export partners to meet growing local demand for beef.

"Indonesia has had issues in meeting local demand and we want to make sure Australia is not just another supplier of live cattle and beef, but is seen as a real partner in meeting the food needs of Indonesia," Dr Barnard said.

Last year, Australia sent more than 700,000 livestock and 38,000 tonnes of boxed beef to Indonesia, making it the most important export destination for live cattle and an increasingly important market for boxed beef, he added.

Live exports to Indonesia are tipped to reach 1.2 million head annually in the coming years.

Employees will continue to work in two key areas; animal nutrition and welfare in feedlots and marketing to the consumer.

"We will focus on supporting the local feedlots and processing industry as well as communicating the nutritional benefits of beef consumption, especially for children," Dr Barnard said.

Since the collapse of Asian currencies in 1998, demand for Australian beef has been on the rise in Indonesia.

The Asian nation has few commercial abattoirs, with 80 per cent of beef slaughtered in wet markets.

MLA director Lucinda Corrigan said 90 knocking boxes had been installed in Indonesia using MLA levies and Federal Government funding.

"Indonesia is taking all Bos Indicus cattle, with Brahman the preferred breed, aged under two years," she said.

"We are seeing a lot of growth in the Indonesian economy and predictions are for live exports of 1.2 million head a year over the next few years.

"There is no differentiation across the carcass with the Indonesians."