Northern Territory cattle producers hope Jakarta's move from four-month to year-long import permits will mean an end to cattle banking up in Australian paddocks and a frantic last minute search for other markets.
An announcement of changed regulations for the live export market has coincided with Indonesian President Joko Widodo's arrival in Sydney on Saturday.
Weight limits will be increased from a 350kg average weight to maximum 450kg for live feeder cattle.
Age limits will also rise.
Agriculture Minister Barnaby Joyce hailed the changes saying it would allow better business planning for Australian exporters, increase the range of cattle eligible for export and ultimately improve returns at the farm gate.
"Australian farmers will have the ability to produce a greater range of cattle for the Indonesian market at competitive prices," Mr Joyce said in a statement.
Northern Territory Cattlemen's Association chief executive Tracey Hayes said the changes will lead to greater certainty in the supply chain.
It had been difficult for producers to survive during times of limited permit allocations, Ms Hayes said.
"Producers would have cattle banked up in the paddocks waiting to go ... they would be forced to go looking for other markets at short notice," she told AAP.
"At times it's been a struggle to meet their weight restrictions and for that to be increased... it's a great outcome."
Australia's live cattle exports to Indonesia were worth $578 million in the 2015-16 financial year.
The industry suffered a major blow under the previous Labor government which introduced a sudden ban on live cattle exports in 2011 following the airing of animal cruelty footage at Indonesian abattoirs.
Australian Livestock Exporters' Council chairman Simon Crean said reducing trade restrictions represents a win-win for both countries.
"Greater policy certainty is a confidence booster," Mr Crean told AAP.
