Indonesian Political, Business & Finance News

Central Java Provincial Government Considers Soybean Subsidy in Response to Price Surge

| | Source: REPUBLIKA Translated from Indonesian | Agriculture
Central Java Provincial Government Considers Soybean Subsidy in Response to Price Surge
Image: REPUBLIKA

The Head of the Food Security Agency (Dishanpan) of Central Java Province, Dyah Lukisari, revealed that the provincial government is prepared to provide subsidies in response to the rising soybean prices in the market. However, since soybeans are not classified as strategic staple commodities, Dyah noted that several criteria must be met before subsidies can be disbursed. “Yes, soybean prices are indeed high. But in the subsidy programme, we haven’t touched soybeans so far; only strategic staple foods,” Dyah explained during an interview on Wednesday (15/4/2026). “But if the soybeans reach 20% above the market reference price, if it’s that high, we might launch subsidies later,” she added. Nevertheless, she emphasised that the provision of subsidies would still undergo a consideration process. According to Dyah, if disbursed, the subsidies would be focused on those who truly deserve them. “If soybeans meet the subsidy distribution criteria, then we cannot target large cooperatives. Because subsidies must go to those who rightfully receive them. So, we will select small and medium-sized business actors,” Dyah stated. She explained that the soybeans circulating in the market are mostly imported. “Imports are influenced by geopolitics. Yesterday plastic prices rose, now soybeans. Geopolitics cannot be predicted,” she said. Dyah also stressed that stabilising food supplies and prices (SPHP) cannot immediately resolve price increase issues. “It can only help the small ones to stay afloat,” she remarked.

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