June 11, 2026

 

Indonesia to provide soybean subsidy of US$0.11/kg

 

The Indonesian government has decided to provide a soybean subsidy of Rp2,000/kg (US$0.11), mobilising state logistics company Bulog to roll out the programme to shield domestic prices from the effects of rupiah depreciation.

 

Coordinating Minister for Food Affairs Zulkifli Hasan unveiled the policy in Jakarta on June 9, noting that it would cover 250,000 tonnes of soybeans in the initial stage of implementation.

 

Speaking after a coordination meeting on food prices, he pointed out that the subsidy is primarily intended as a buffer for the domestic market in anticipation of adverse impacts from the weakening rupiah, given that Indonesia heavily relies on imports for soybeans.

 

Hasan added the subsidy is expected to help maintain soybean price stability so as to safeguard residents, particularly those producing or trading soybean-based ingredients such as tofu and tempeh.

 

The minister further estimated the budget required for the first wave of subsidy at Rp500 billion (US$27.8 million).

 

Indonesian President Prabowo Subianto has received a report on the planned subsidy, he said, adding that technical matters will be addressed by Bulog and the Ministry of Finance.

 

Bulog President Director Ahmad Rizal Ramdhani provided details, noting that the Ministry of Trade and soybean business associations would also be involved in arranging technical matters.

 

"We will first convene with the Trade Ministry, the Finance Ministry, and soybean business associations to ensure maximum results," he stated.

 

Ramdhani underlined that subsidised soybeans would be exclusive for tofu and tempeh producers.

 

"Not circulating at markets, they will be sold directly to producers to ensure lower prices," he affirmed.

 

A day earlier, Hugo Siswaya confirmed that rupiah depreciation had driven up soybean prices and increased pressure on producers.

 

Tofu factory owner Taufik Munandar echoed a similar sentiment, highlighting that the currency weakening had led to an increase in imported soybean prices to around Rp10,500/kg (US$0.58), moving closer to the reference price ceiling of Rp12,000/kg (US$0.67) set by the National Food Agency.

 

- Antara