January 15, 2024

Suez Canal siltation causes soybean shortage in Indonesia

The President Director of Indonesia's State Logistics Agency (Bulog), Bayu Krisnamurthi, highlighted the impact of siltation in the Suez Canal on soybean supply, leading to a shortage of the grain in Indonesia, Antara reported.

Krisnamurthi said that transportation challenges have arisen due to the Suez Canal's siltation and disturbances in the Middle East, affecting the availability of ships and containers.

The current situation has forced transport ships to reroute around the Cape of Good Hope, causing a delay of three weeks in soybean deliveries. Krisnamurthi identified transportation problems as the primary obstacle in maintaining domestic soybean stocks. Additionally, the decision by Bulog to cease soybean imports last year has shifted the responsibility entirely to the private sector.

Despite these challenges, certain regions in Indonesia, including East Java and Banten, have begun receiving soybean shipments. Krisnamurthi anticipates that soybean stocks will normalize ahead of Ramadan, with the fastest soybean deliveries expected within one to 1.5 months.

The soybean supply challenges have been communicated to the Indonesian Tofu Tempe Producers Cooperative Association (Gapoktindo). In response, Bulog is considering implementing a new import system to mitigate such disruptions in the future.

Hidayatullah Suralaga, the secretary-general of Gapoktindo, acknowledged disruptions in soybean distribution in early December. However, efforts have been made by business actors to expedite soybean arrivals in Indonesia. In November and December 2023, the country received 60 thousand tonnes of soybeans through bulk ships and an additional 75 thousand tonnes in containers, directly distributed across the nation.

-       Antara