INDONESIA AS NEW EMERGING MARKET

Friday, September 01, 2006

INDONESIA IS STILL DEPENDENT ON SOYBEAN IMPORT

In the country consumption of soybean around 1.2 million tons per year from 2 millions tons total, is still dependent from import. Currently local production only produces 0.8 million tons per year, that mean still far from fulfill local consumption.

Indonesia’s soybean import track record, in 2000 soybean imports reached 1.28 million tons, and in 2001 dropped to 1.14 million tons. In 2002, the imports increased to 1.37 million tons, in 2003 dropped to 1.19 million tons. In 2004 imports reached 1.12 million tons and in 2005 until data of October, imports already reached 0.83 million tons.

The United States is the biggest soybean suppliers of Indonesia, with 870 thousands tons (78.03%), and followed by Argentina (234 thousand tons=21.04%), Malaysia (5.7 thousand tons=0.51%), and Myanmar (3.1 thousand tons=0.28%).

In this case, The Ministry of Agriculture projected to turn Indonesia in 2010 into a country self-sufficient in soybean. To increase soybean production, there are some matters have to be done, i.e. improved price of soybean, speeding up technological application to superior seedling, use of biofertilizers, integrated pest control, and improvement in pre- and post harvests.

Regarding soybean plantation expansion, the Ministry plans to carry out three programs namely growth center, partnership and business development. The three programs will basically provide security to production means, enlightenment and marketing, to draw the interest of farmers in soybean rising. Success of this program, projected in 2007, the soybean estates will reach 2 million hectares.

The growth center program will be implemented in 23 provinces and 49 regencies with the support of deconcentration fund in the form of SL Soybean Agribusiness guidance and financial support of the provincial and regency budgets, while partnership program in 16 provinces will involve private business partners or state-owned enterprises. Business development will be implemented in 30 provinces in the country.

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