THE federal government has decided to suspend the export of all live cattle to Indonesia, following a public outcry and a threatened backbench revolt.

The Agriculture Minister, Joe Ludwig, signed the order last night and said the ban would stay in place until safeguards had been adopted that would ensure the proper treatment of the beasts along the whole supply chain.

"Major change" ... Australian cattle. Credit:Alex Massey

The decision to suspend the $318 million-a-year-industry was taken by cabinet on Monday night and has the potential to upset the Indonesians, the cattle industry and the federal opposition, all of which have argued against a blanket ban.

The Prime Minster, Julia Gillard, said the government would work with the Indonesians and the cattle industry to ''bring about major change'' to the handling of cattle in Indonesian slaughterhouses.