JAKARTA. State-owned agribusiness PT Rajawali Nusantara Indonesia (RNI) has delayed plans to acquire a cattle ranch in Australia due to the rise in value of the US dollar.

“At first, we were looking at a Rp 9,600 [83 US cents] exchange rate against the dollar, but now it has risen to Rp 12,000. The plans have become unfeasible,” RNI Director Ismed Hasan Putro said as quoted by tempo.co on Thursday.

Ismed added that the lack of an import permit from the Agriculture Ministry was also why the company chose to delay the purchase.

RNI had previously planned to acquire 51 percent of the Australian cattle industry. The company had prepared up to Rp 350 billion to acquire ranches that had the capacity to hold 50,000 to 500,000 cattle.

In December 2013, Agriculture Minister Suswono asked cattle importers to cease buying Australian cattle until Indonesia and Australia worked out their diplomatic problems, triggered by allegations of Australian wiretapping of Indonesian political figures, including the President and the First Lady, in 2009.

Editor: Asnil Amri