Indonesian Political, Business & Finance News

Government Lacks Soybean Reserves, Tempeh and Tofu Producers Point to Policy Failures

| Source: CNBC Translated from Indonesian | Trade
Government Lacks Soybean Reserves, Tempeh and Tofu Producers Point to Policy Failures
Image: CNBC

The Indonesian Tempeh and Tofu Producers Cooperative (Gakoptindo) is urging the government to immediately establish a Government Food Reserve (CPP) for soybeans, managed by the state logistics agency Bulog. The move is deemed essential to give the government control over supply and prices, reducing the current total dependence on importers.

The demand comes amid rising global soybean prices. However, Secretary General of Gakoptindo, Wibowo Nurcahyo, noted that domestic prices from importers remain relatively stable at around Rp10,000 per kilogram, while the actual landed cost is approximately Rp8,000 per kg. He argued that without its own stockpile, the government is forced to follow the pricing set by importers.

Gakoptindo also highlighted the issue of a promised subsidy of Rp2,000 per kg for producers. According to Wibowo, the subsidy cannot be disbursed because regulations require the price of imported soybeans to reach the Government Reference Price (HAP) of Rp12,000 per kg. Since the current market price is lower, the subsidy mechanism is blocked.

Wibowo called on the government to revise the reference price regulations to allow the subsidy to be distributed. He expressed hope that the administration would fulfil its promise to support tempeh and tofu producers across Indonesia.

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