April 16, 2012

Indonesia's 2012 soy imports may surpass 1.8 million tonnes

An industry official said Friday (Apr 13) that as domestic supplies struggle to meet demand, Indonesia's soy imports could exceed 1.8 million tonnes this year, urging the government to boost import duties about five folds.

Indonesia, home to around 240 million people, imports 70% of its annual soy requirements, mostly from the US, the world's top exporter. Soy is mainly grown in the main island of Java and also in parts of Sumatra.

Soy consumption in Southeast Asia's largest economy rose 6% to around 2.4 million tonnes last year, and the country has set an ambitious target of self-sustainability by 2014.

"The fact that there is no significant enlargement of soy production area in Indonesia this year means the volume of soy import could be more than 1.8 million tonnes," Benny Kusbini, chairman of the Indonesia Soy Council, told Reuters.

"We propose that the government increase soy import duties from the current 5% to 27%," he added, urging the Indonesian government to make further investments in domestic soy farming, in a bid to boost yields.

Soy plantations cover around 900,000 hectares of land in Indonesia.