October 2, 2013
In an attempt to reduce import of the commodity, which could reach 1.8 million tonnes annually, the Indonesian government is encouraging farmers in various regions in the country to increase soy production.
The Ministry of Agriculture hopes that the country's soy production centres such as Central Lombok and Bisma districts in West Nusa Tenggara Province will consistently maintain and increase their soy production.
Minister for Agriculture Suswono expressed his hope when he attended a soy grand harvest in Sukarara Village, Jonggat Subdistrict, Central Lombok, West Nusa Tenggara (NTB).
"The Ministry of Agriculture challenged NTB to maintain its status as a national soy production centre, urging it to prove its production capacity of one million tonnes by 2014," said spokesperson for the NTB Regional Government Tri Budi Prayitno in NTB Provincial Capital Mataram.
Suswono, accompanied by Food Crop Director General at the Ministry of Agriculture Undoro Kasih, NTB Governor TGH M Zainul Majidi and other relevant officials, attended the soy grand harvest, which covered an area of 70,000 hectares in the province. On the sidelines of the harvest, Suswono said the country's need for soy has reached 2.5 million tonnes annually but its domestic production is only about 700,000 and 800,000 tonnes a year.
Therefore, the country is in need of some 1.7 million to 1.8 million tonnes, forcing it to import the commodity to meet its domestic demand, thus, the minister encouraged various regions to increase their soy production in an effort to reduce import.
Indonesia produced 1.6 million tonnes of soy in 1992. The figure declined steadily in the following years, and recently, Indonesia produces only 800,000 tonnes of soy in a year.
Suswono said the government is forced to import soy because of the lack of interest from local farmers in cultivating soy. In many places, he said, soy was alternated with other crops before farmers started replacing it with onions, which promised better yields. In order to encourage farmers to cultivate soy again, the price of soy must be stabilised and the acreage of plantations for soy must be expanded, the minister said. Otherwise, he added that the production of other crops such as corn will be negatively affected.
"Now, with the price of soy being high, farmers are being encouraged. Several regions have begun developing plantations. Farmers in Aceh Province have developed 50,000 hectares and those in West Nusa Tenggara (NTB) have developed 30,000 hectares," the minister pointed out.
In the meantime, Bali is also planning to open 7,000 hectares of soy plantations this year. Unfortunately, only 57% of the plan is complete - only 4,000 hectares have been opened so far, according to Bali's agricultural service chief Ida Bagus Wisnuardana. He, however, is optimistic that the target could be reached in the remaining months of the year.
In the past three years, soy plantations in the province have shrunk from 9,000 hectares to 7,000 hectares on seasonal factor, resulting in the decline in production. According to an expert, in order for Indonesia to meet its domestic demand, it should increase the acreage of its farmlands.
"Soy must compete with other crops such as corn because of shrinking farmlands", Didik Indradewa of Yogyakarta-based Gadjah Mada University said. "Today, we see a decline in the production of domestic soy because it cannot compete with imported soy and other crops." Suswono concurred with Indradewa, saying that at least 500,000 hectares would be needed.
Therefore, the Indonesian Farmers Union (SPI) has urged the government to set the government purchase price (HPP) of local soy at IDR8,500 (US$0.74) a kilogramme as part of its efforts to stabilise the prices. "The government must set a new purchase price since the present price of IDR7,000 (US$0.61) a kilogramme is not beneficial," said Achmad Yakub, SPI chairman of national strategic studies.
Minister Suswono said to encourage farmers, beneficial margin calculated out of the production cost must be fixed.
