AUSTRALIAN cattle breeders could benefit from supplying Indonesia with genetics, technology and training.

These extra initiatives, on top of live exports, could boost the Australian industry as Indonesia moves towards self-sufficiency in beef production.

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Foreign Minister Kevin Rudd met Indonesian Agriculture Minister Dr Suswono in Jakarta last week to discuss Australia's role in Indonesia's planned move to self-sufficiency by 2014.

Their discussion focused on collaboration that would improve Indonesia's livestock industry, a spokeswoman for Mr Rudd said.

"They discussed how Australia and Indonesia could benefit from significant and continued Australian exports, in partnership with the Indonesian feedlot industry," she said. They also discussed how significant Australian investment in Indonesian breeding stock, as well as in the nation's beef processing industry, would enhance this relationship.

With a population of 230 million and a growing middle class - in size and in prosperity - Indonesia aims to lift its beef consumption from 2kg to 20kg per head per year.

Cattle Council of Australia chief executive David Inall said the move was positive for Australian producers.

"Any trade with Indonesia around cattle is a good thing," he said.

"We export breeding cattle and genetics to many countries around the world and, while Indonesia has publicly stated it wants to be self sufficient in beef by 2014, we believe the export of feeder cattle for value adding in feedlots - an extension of the current trade - can play a role in that."

Self-sufficiency could mean many things, Mr Inall said.

Meeting the demands of a growing middle class would remain a challenge for the island nation, he added.

"Self-sufficiency doesn't mean you have to breed all your own cattle.

"We have, for a number of years, assisted Indonesia in breeding cattle and have provided additional support and we will continue to do that," he said.

Late last year, Indonesia announced it would slash import quotas for live cattle from 520,000 to 283,000.

That was a larger cut than most in the Australian industry expected.

The move followed the Australian Government's suspension of live cattle exports to Indonesia last year on animal-welfare grounds.

Meanwhile, uncertainty about import permits issued by Indonesia is hampering planning for some exporters.

Early reports out of Jakarta suggest permits to import just 50,000 to 60,000 cattle have been issued for the first quarter of this year.