January 8, 2013

Indonesia to sell hydrolysed plant protein soy this January

Indonesia's hydrolysed plant protein (HPP) soy will be completed this January but the purchase price and sales price are still not finalised by the government.

Deputy Minister of Agriculture (Wamentan) Rusman Heriawan added soy HPP has been discussed by the ministry to include how much traffic the value that benefits the farmers and artisan tofu and tempeh. "Cross-ministerial inter-departmental discussion is finished, the status is still indicated by the fiscal analysis," said Rusman.

According to Rusman, which is still under discussion is the question of the budget, whether to use state budget or not. Price ideal for soy farmers and craftsmen tempe is about IDR7,000 (US$0.72) per kilogramme. With these calculations, Bulog will buy soy imports amounting to IDR5,000 (US$0.52) per kilogramme, with a selling price of IDR6,000 (US$0.62) per kilogramme.

In order for cross-subsidy occurs, then the purchase price of soy by Bulog of farmers in the country amounted to IDR7,000 (US$0.72) per kilogramme. "At least there are no cross subsidies between the purchase of imports with local farmers," said Rusman.

However, according to Rusman the buffer issue when the agency is not supported by the state budget. When the world soy prices are high, then at least there is a bailout to avoid harm to Bulog.

The problem is that if it turns out Bulog will not have the support of the state budget. If soy prices rise, it is necessary that the bailout Bulog loss.

Maman Suherman, Director Assorted Nuts and Tuber Kementansaid the current price of soy at the farm level amounting to IDR6,500 (US$0.67) per kilogramme. He said the HPP soy farmers should be above the price that would trigger farmers to grow soy.

He said the Ministry of Agriculture has been recorded for this year that there will be an additional which is approximately 220,000 acres of soy fields in some areas, such as Aceh, Lampung, West Java, Central Java, and East Java. Thus, the total planting area of ​​soy could reach 800,000-900,000 hectares by the end of 2013. At present, the total area is ​​660,000 hectares of soy planting.

Based on BPS data, annual soy production has decreased. In 2009, soy production reached 974,000 tonnes, in 2010 it fell to 907,000 tonnes, 2011 dropped to 851,000 tonnes and 2012, dropped again to 783,000 tonnes.