July 25, 2012

Imported soy prices up in Indonesia's Kebumen markets

In several traditional markets across Kebumen Regency, Central Java, the prices of imported soy have risen.

"The price of imported soy now is IDR7,400 (US$0.78) per kilogramme, while last week it was IDR7,200 (US$0.76), and a month ago it was IDR6,000 (US$0.63). The prices are continuing to rise," said Patuh Gunawan Ahmadi, the Head of Consumer Protection Department of Commerce Industry, Trade, and Market Management Kebumen Regency, in Kebumen on Tuesday (July 24).

Local officials were monitoring the rise of soy prices across several traditional markets in Central Java, he added.

Patuh explained that the Consumer Protection Department of Commerce Industry, Trade, and Market Management Kebumen Regency did not have the authority to control the rising prices of imported soy in local markets.

"Import soy prices are fully controlled by the market mechanism. Global demand and supply determines the prices of such products," he pointed out.

"I hope the local, regional, and central authorities soon take steps to control the soy prices in the future, such as through market operations," Patuh stated.

"If the market prices of imported soy can be controlled, it will help people, particularly small entrepreneurs such as tempe and tahu, to produce normally. But local consumers are highly dependent on imported soy," he said.

Kebumen Regency has immense potential for soy cultivation. Many local farmers are expected to harvest soy in the coming two to three months. However, consumer demand for local soy remains low.