July 30, 2012

Indonesia has decided to prioritise domestic soy production in response to the costly price of the commodity in the global market.

"The increase in the price of soybeans in the world market has significantly affected the price at home, since about 70% of the country's need for soy are imported," ANATARA News quoted trade minister, Gita Wirjawan as saying on July 26.

The minister said that increase in local production would help the nation to maintain stability of soy prices. In the last five years, local soy production has increases by just some 4.38%.

In order to make a country self-sufficient in soy production, the country would need at least 500,000 hectares of land. As a temporary measure, the government exempted the commodity from import duties on July 25.

In addition, the government will coordinate with the National Agrarian Agency to raise the nation's soy production.

Indonesia is facing difficulties to increasing soy production as it is a sub-tropical plant and soy does not grow well in tropical areas.