- Iran war begins, causing the closure of the Strait of Hormuz and a significant oil price spike.
- In June, Australia's fuel imports reached A$7 billion, contributing to a total of A$33 billion in the four months since the war began.
- Danantara Indonesia has agreed to invest $2.5 billion for a 25% stake in a joint venture with JBS covering operations in Australia and New Zealand.
- The transaction values the new joint venture at approximately $10 billion on a post-money equity basis, with potential for up to another $2.5 billion for acquisitions and projects.
- Danantara's investment aligns with its strategy of partnering with global industry leaders in sectors with long-term growth potential.
- JBS operates an extensive protein business, including more than 50 production facilities in Australia and New Zealand, supplying both domestic and export markets.
The war on Iran has led to a dramatic increase in fuel import costs for Australia and New Zealand, with domestic prices rising sharply. In June alone, Australia imported over A$7 billion ($5 billion) worth of crude oil and processed fuels, contributing to a total of A$33 billion in imports since the conflict began, a staggering 70% increase compared to the same period in 2025.23
In a significant business move, Danantara Indonesia has announced a $2.5 billion investment for a 25% stake in a joint venture with Brazilian food giant JBS S.A.. This partnership aims to leverage JBS's extensive operations in Australia and New Zealand, which include over 50 production facilities and a robust distribution network.457
Danantara's Chief Investment Officer, Pandu Patria Sjahrir, emphasized that this strategic partnership aligns with their long-term growth strategy, providing access to established markets while supporting the development of Indonesia's protein industry. JBS's CEO, Gilberto Tomazoni, noted that this collaboration marks a crucial step in their Southeast Asia expansion strategy, enhancing regional protein supply chains and market access.
Despite rising livestock procurement costs, JBS Australia's operations have thrived, reporting record net sales of $8.08 billion in fiscal year 2025, a 21.5% increase from the previous year, with adjusted pre-tax earnings rising 37.9% to $916 million.
“Australia's fuel imports hit A$33 billion in four months, up 70% from 2025, as the Strait of Hormuz closure spiked prices. The JBS joint venture, valued at $10 billion, could deploy up to $5 billion for acquisitions across Indonesia, Southeast Asia, Australia and New Zealand.”
