Kevin Rudd.
Kevin Rudd. John Gass

Relaxation of constraints on beef market is key: Rudd

PRIME Minister Kevin Rudd has used a breakfast address to Indonesian dignitaries and business people to call for a "relaxation of supply constraints" on the beef market.

Mr Rudd, on a brief trip to Australia's closest Asian neighbour, said realising the two nation's "collective potential" would require a shared vision.

Key to this, he said, were the complementary strengths of a growing beef consumer market in Indonesia and the position of Australia as a key cattle producer and supplier.

"It begins with a relaxation of supply constraints for the Indonesian beef market," he said.

"This, alone, could provide the necessary kickstart for further investment and co-operation."

Mr Rudd capitalised on his foreign affairs credentials, following the disastrous effects of the live export ban to Indonesia during Julia Gillard's time in the top job.

He also launched a new strategy for trade and investment between the two countries, aiming to cut trade barriers and open markets in both countries by 2025.