Indonesia weighs subsidy for imported soybeans amid rising prices
Indonesia is considering a subsidy for soybean imports to curb soaring global prices and keep the staple affordable for consumers.
At the 14th United States-Indonesia Investment Summit in Jakarta, Trade Minister Budi Santoso announced that officials are exploring a subsidy for soybean imports. The proposal aims to mitigate the impact of rising global soybean prices on domestic markets and protect consumers of tofu and tempeh, which are daily staples. Indonesia consumes about 2.74 million tonnes of soybeans annually but produces only around 311,000 tonnes, making it heavily dependent on imports.
The subsidy would be paid to importers to ensure both affordability and availability of the commodity. While the exact design, including the calculation method and volume thresholds, remains under discussion, the government hopes to implement the policy within one outlet year.
Why it matters
Soybean price hikes could push up food costs for millions of Indonesians who rely on tofu and tempeh for protein.
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