THE AUSTRALIAN government is examining trade opportunities with Indonesia aimed at taking advantage of a scheme aimed at feeding school children.

A key policy for President-elect, Prabowo Subianto, is to provide free lunches and milk to Indonesian school students, a move aimed at boosting economic growth with a healthier population.

Secretary of the Department of Agriculture, Fisheries and Forestry, Adam Fennessy, told a panel session at the Australian Grains Industry Conference about the diversification push following recent trade tensions with China over barley.

He said they were already talking to the dairy sector and there could be opportunities for grains too.

“India, Indonesia, they are the markets that are going to really help. We are watching very closely the incoming Indonesian president with his lunchbox for every Indonesian school child [policy],” he said.

“We have already talked to [the dairy industry] about that, what does that mean for grains and pulses?

“We are already working at [Indonesian] official level… doing everything we can.”

Mr Fennessy noted the recent publication of the report Australia’s Southeast Asia Economic Strategy to 2040 by Nicholas Moore AO, into opportunities in Southeast Asia, noting the “huge consumer market at our doorstep”.

“There is a huge emerging middle class, Indonesia, Philippines, Thailand etc, there are a lot of opportunities in Southeast Asia,” he said.

The panel session was chaired by leading journalist Hugh Riminton and also included GrainCorp chief executive and chairman Robert Spurway.

Mr Spurway spoke of the need to overcoming non-tariff barriers to trade, particularly with India.

He also spoke about “sustainability” and demand for Australian grains based on biofuels.