The deal, between Austrex and Indonesian firms Pramana Agri Resources and Rumpinary Agro Industry, will allow the joint venture to have control of the cattle supply from Australia through to the sale of boxed beef, the Jakarta Globe reports.
"The business model will be integrated, from the animal feed supply to the fattening, up to the meat cutting and the beef box processing," Pramana Agri Resources director Robert Erizo Kusnadi told the Jakarta Globe.
"In the first phase, we would have a feedlot capacity in the range of 10 [thousand] to 15,000 cattle," he said.
Operations for the joint venture were expected to begin in the second quarter of 2017.
The ownership of the joint venture was still in negotiations, with the Indonesian companies expected to take the majority share, the Jakarta Globe reports.
ABC Rural approached Austrex for comment and was told reporting of the deal in Indonesian media was accurate, but the company would not offer any further information due to confidentiality agreements.
Austrex exports cattle to a range of customers across South East Asia and earlier this year exported slaughter-ready and feeder animals to the newly established trade with Thailand.