Indonesian Political, Business & Finance News

Bulog Will Import Second-class Soybeans

| Source: TEMPO
Friday, 18 January, 2008 | 13:58 WIB

TEMPO Interactive, Jakarta: The State Logistics Agency (Bulog) has not yet found any alternative to the soybean exporting country other than the United States. Temporarily, Bulog will continue to import soybeans from Uncle Sam. “Soybeans from the US are second-class, not first,” Bulog’s Managing Director, Mustafa Abubakar, told reporters at the vice presidential office, Jakarta, yesterday (17/1).

Actually the best quality soybean is from Canada, then the US. Yet, the price is high. Brazil and Argentina are the world’s big soybean producers, but the quality is still below that of the US. “So when it comes to price, what is appropriate for Indonesia is the second-class soybean from the US,” said Mustafa.

The soybean price continued increasing from Rp3,000 per kilogram in late 2007 to Rp8,000 per kilogram. The price increase was caused by the soybean price increase in the international market from US$300 per ton to US$600 per ton.

The soybean price increase was a blow for thousands of tofu and tempe producers in Indonesia. In order to overcome the price increase in the short term, the government exempted import duty for soybean from 10 percent. The government will also help in seeking cheap soybean exporting countries. As regards the middle and long term, the government will increase local soybean production by adding new areas (Koran Tempo, January 16).

Several circles urged the government through Bulog to stabilize the soybean price. Yet, according to Mustafa, now Bulog is not authorized to directly interfere in the soybean price after its status was changed from a non-departmental government institution to a public company. “For stabilizing the soybean price, the government through the Directorate General of Excise Duty has already called upon soybean importers,” said Mustafa. Now there are four major importers, Teluk Intan, Gunung Sewu, Liong Seng and Cargill.

According to Executive Director of Indonesian Plantation Research Agency, Didiek Hadjar Gornadi, the high level of dependency of soybean importers was because the government is not yet serious in appreciating self-supporting soybeans. Every state administration, in spite of having self-supporting soybeans, is never successful because of minimum funds and interdepartmental coordination. “Upstream industry’s support is needed to even out the soybean production process,” he said in Jakarta yesterday.

PADJAR | ANTON APRIANTO | YULIAWATI
Tags: business
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