Government Subsidises Soybeans by Rp2,000 per kg via Bulog

The government has decided to provide a soybean subsidy of Rp2,000 per kilogram through Perum Bulog to maintain price stability amid the rupiah’s depreciation and the high import dependence on this commodity. Coordinating Minister for Food Zulkifli Hasan stated the first phase of the subsidy covers 250,000 tonnes, as nearly all soybean supply relies on imports. “We have decided in this meeting that soybeans, which are almost one hundred per cent imported, will be subsidised by Rp2,000 per kg. The government is providing for the first 250,000 tonnes through Bulog,” Zulkifli said following a Limited Coordination Meeting on Food Commodity Price Developments in Jakarta, Tuesday. According to Zulkifli, the government is anticipating the impact of a weaker rupiah on domestic soybean prices given the heavy import reliance. He said the subsidy is expected to stabilise soybean prices to avoid burdening tofu and tempeh businesses and the public. The government estimates the funding requirement for this first phase at approximately Rp500 billion. “Soybeans for the first 250,000 tonnes. At Rp2,000 per kg, that means the total subsidy budget is around Rp500 billion,” Zulkifli explained, adding the decision has been reported to President Prabowo Subianto. The government will next correspond with the Ministry of Finance regarding the policy’s technical implementation, with Bulog to assess the procedures. Perum Bulog President Director Ahmad Rizal Ramdhani said the technical implementation will be discussed further with the Ministry of Trade, Ministry of Finance, and soybean business associations to ensure maximum effectiveness. He confirmed the subsidised soybeans will be channelled directly to tofu and tempeh artisans, not sold on the open market, to ensure lower prices. Separately, Hugo Siswaya, chairman of the Tahu Tempe Artisans Cooperative in Cianjur, West Java, noted that the recent price increase due to rupiah depreciation continues to burden hundreds of producers, with soybean prices reportedly reaching around Rp10,500 per kg. Under National Food Agency Regulation No. 12 of 2024, the maximum Sales Reference Price for local soybeans at the consumer or artisan level is set at Rp11,400 per kg, while the cap for imported soybeans is Rp12,000 per kg. The government considers price intervention necessary to prevent raw material cost pressures from spreading to soy-based food products widely consumed by the public.