May 20, 2026
 

Indonesia's soybean self-sufficiency goal constrained by import dependency and unviable farm economics

With 94% of demand met through imports, experts say guaranteed farm-gate prices are the only credible path to domestic production growth.

Indonesia is projected to import 2.57 million tonnes of soybeans in 2026, meeting nearly 94% of annual domestic demand of 2.74 million tonnes, as local production costs make domestic cultivation economically unviable against prevailing import prices.

Dwi Andreas Santosa, Professor at Bogor Agricultural University (IPB), said domestic production costs range from IDR10,000 to IDR13,000 per kilogram (US$0.57–0.74), well above the current port-level import price of around IDR7,000 per kilogram (US$0.40). He said the government would need to guarantee a minimum farm-gate price of at least IDR15,000 per kilogram (US$0.86) to make soybean cultivation financially viable for farmers.

"The key to soybean self-sufficiency lies in the selling price at the farmer level. The government must maintain prices that are profitable for soybean farmers," Andreas said.

Geopolitical pressures have already moved the market. International soybean prices, which were around IDR6,900 per kilogram (US$0.39) last year, have since risen above IDR10,000 per kilogram (US$0.57) in Indonesia, driven by Middle East tensions. Soybean imports currently enter Indonesia at a 0% tariff, the same rate applied to wheat.

Andreas noted that farmers have little incentive to grow soybeans when alternative crops such as mung beans offer similar productivity at IDR20,000 per kilogram (US$1.14). He said tariff policy adjustments, alongside price guarantees, would be necessary to shift that calculus.

The National Food Agency (Bapanas) said domestic soybean supplies remain sufficient through July 2026, and that importers have committed to price stability. Kelik Budiana, head of the agency's Food Data and Information Centre, said the government is working to expand domestic planting areas and increase cultivation points to support longer-term self-sufficiency goals.

Domestic soybean production in 2026 is projected at just 311,429 tonnes against demand of 2.74 million tonnes. Soybeans remain one of Indonesia's three most import-dependent food commodities, alongside garlic and beef.

— Jakarta Globe