Trade Minister: Rp2,000/kg Soybean Subsidy to Assist Tempe Producers

Trade Minister Budi Santoso has stated that the government’s policy of providing a subsidy of Rp2,000 per kilogram for soybeans is an effort to assist tempe producers facing rising raw material costs due to global market volatility. The policy was discussed in a meeting led by Coordinating Minister for Food Zulkifli Hasan on Tuesday (9/6), as a measure to maintain the continuity of tempe production amidst increasing soybean prices. “Because they are disrupted by the rising prices, we are helping the tempe artisans,” Budi said in Bogor, West Java, on Friday. In the initial phase, the government will provide a subsidy for approximately 250,000 tonnes of imported soybeans. This step is expected to reduce the burden of production costs, which are currently increasing due to the surge in commodity prices on the international market. With this subsidy, the government hopes that tempe artisans can sustain production and sell their products at prices that remain affordable for the public. “The aim is to ease the pressure of increasingly high prices due to the global market impact, because of war, so that artisans can continue producing their tempe at current prices,” he said. The government decided to provide the soybean subsidy of Rp2,000 per kilogram through the State Logistics Agency (Perum Bulog) to maintain soybean price stability amid the weakening rupiah and high dependence on imports of the commodity. According to Zulhas, the government is anticipating the depreciation of the rupiah exchange rate, which could potentially affect domestic soybean prices because most of the commodity’s needs are met through imports. He said the subsidy is expected to maintain soybean price stability so as not to burden tahu and tempe businesses or the public.