Northern Australia will reap the benefits of this growing Asian market, providing producers can fend off looming competition from South America.

ABARE predicts Australia's beef exports to Indonesia are forecast to increase by 16 per cent to 44 kilotonnes in 2009-10 thanks to a booming Indonesian appetite.

This will be tempered by Australia's high exchange rate, however with Indonesian demand for beef and live cattle growing this will still be one of Australia's most attractive markets in the medium-to-long term.

Indonesian imports of live cattle from Australia increased by 28 per cent to 700,000 head in 2008-09 with import demand growing well after an expansion of Indonesia's feedlot infrastructure.

Australian exports of live cattle to Indonesia are forecast to increase by five per cent to 735,000 in 2009-10, and a further two per cent to 750,000 in 2010-11.

"Nevertheless, one downside risk to this outlook is the possibility of increased competition from Brazilian beef," the ABARE forecasts warn.

"In early September 2009, the Indonesian Government issued a ministerial decree allowing imports of boneless beef from Brazil.

"The effect on Australian beef exports will depend on a number of factors such as price and consumer preferences.

"While Australia has a freight advantage, Brazil is a lower cost producer."

It's believed the integration of Australia's live cattle trade into Indonesia's beef supply chain through feedlots will give Australia a leg up in this area.