Australia's beef industry will be able to lift sales to one of its biggest markets after Indonesia relaxed restrictions on some imports to contain local beef prices and prevent supply shortages under a policy aimed at increasing self-sufficiency.

Indonesia has agreed to exempt "premium" Australian beef imports from quotas, Australian Trade Minister Craig Emerson said on Tuesday. It will also allow live cattle exporters to start filling quotas intended for the final six months of the year ahead of schedule.

Australia is the world's third biggest beef exporter and has relied heavily on Indonesian demand, but the tightening of quotas by its largest live cattle market in 2012 and 2013 has hurt the industry.

Indonesia slashed its 2012 import quotas for live cattle by over a third and beef by nearly two-thirds, while 2013 quotas were cut by another 30 percent for cattle and 6 percent for beef, as Jakarta sought to promote its own domestic beef market.

Australian beef cattle prices recovered slightly in the last week, with the Eastern Young Cattle Indicator rising 2 cents on Monday to A$2.96 ($2.87) per kilogram although prices remain 20 percent lower than a year ago.

"Today's decision means that those farmers that have stock available, there is an opportunity to get them on the boat," said Alison Penfold, chief executive of Australia's Live Export Council.

Indonesia's quotas on beef imports are aimed at building up its own domestic beef industry, but the policy has created shortages and rising prices.

"These measures are taken to stabilize beef price in the domestic market so that people can afford beef for their daily meal," Indonesian Trade Minister Gita Wirjawan said.

Indonesia set total beef import quotas for 2013 at 32,000 tons, of which about 20 percent consisted of prime cuts. The live cattle import quota was set at 267,000 head.