Challenges of soybean self-sufficiency policy in Indonesia

Abstract

Indonesia deals with adverse soybean trade balance deficit as its domestic production is far below its demand. The study aims to analyze the challenges of achieving soybean self-sufficiency based on a survey in Lampung, West Java, Central Java, and West Nusa Tenggara Provinces in 2018. The special program (UPSUS) of soybean distinctively designed to achieve soybean self-sufficiency is characterized by heavily subsidized inputs, intensive practice on existing farm land area, as well as newly-planted area enhancement (PATB) on fragmented, less fertile and unsuitable land areas. Nevertheless, it results in unsatisfactory soybean production enhancement. Soybean farming is not competitive in term of farm business due to its relatively low yield and unfeasible farm-gate price. To enhance national soybean production, this crop should be grown on the suitable farm land at appropriate scale. A soybean variety resistant to insect-pests attack is mandatory to be adopted by farmers. In addition, the government needs to restructure the marketing aspect consisting of an effective floor price establishment through Bulog purchase with sufficient state budget allocation. It is also urgent to regulate soybean trade such as soybean import during off season as well as reasonable import tariff.