Mr Mills said during a series of meetings in Indonesia last week it was made very clear the Federal Government had been foolish to underestimate the resilience of the Indonesian people.

"The view from Indonesia expressed by senior journalists, former ministers, the Chamber of Commerce and serving politicians was that the blanket ban was a stupid decision that would be counter-productive to Australia and serve to strengthen Indonesia," Mr Mills said in his media statement.

"The effect of the ban was to interrupt Indonesian beef supplies in the short term, but in the long term raised the issue of food security.

"Until the blanket ban, self sufficiency was seen as an aspirational goal. Now it is becoming a key national objective.

"In the future I predict Indonesia will move away from dependence on large feedlot operators in favour of measures to increase the spread of the herd to small farmers across the archipelago."

Mr Mills said one measure being discussed ws the improvement of internal transportation to boost market access.

"Currently, economies of scale favor large shipments from Australia, but Indonesia is aiming to reduce the cost of internal transportation, which will benefit small herd owners across Indonesia," Mr Mills said.

"The Federal Government should undo some of the damage the blanket ban caused by committing to closer relationships with Indonesia at the highest levels.

"The Territory can benefit from Indonesia's desire to become self-sufficient in beef production by sharing experience and expertise through training support and assistance and supplying the younger cattle that will be required to achieve this goal.

"In establishing a proactive working relationship with Indonesia, the Territory will be well positioned to top up Indonesia's beef supply because its consumption is still increasing."