Can soybean imports have an effect on domestic production in Indonesia?

Soybean imports. An article published in the proceedings of the research seminar on various bean and tuber crops in 2015 This article is about the condition of soybean imports, which in the long run will reduce the level of domestic production.

The increase in soybean imports compared to other food commodities such as rice and corn is increasing. The increase indicates the lower level of competitiveness of domestic soybeans. The target of self-sufficiency in 2017 was not achieved because the import tap was not closed first or at least reduced so that local soybeans could improve their efficiency and productivity.

Soybean imports

This article seeks to explain, from a scientific perspective, the effect of soybean imports and prices on the productivity of domestic soybean farmers. The analytical tools used are multiple regression and trend analysis.

The result of this analysis is that price is an important factor in increasing soybean production. Market prices are no longer sufficient to meet the needs of production factors since imported soybeans are more efficient than local soybeans. In fact, the flood of local soybean commodities is because market prices are still higher than production costs plus logistics costs from the country of origin. This indicates that there is homework to be done to improve cost efficiency, including input costs, labor, land, and others. On the technical side, soybeans have many enemies in the form of diseases and pests that are more numerous than other food commodities.
The conclusion of this article explains that imports, in the long run, can reduce local soybean production. A 1% increase in soybean imports will cause a 2.3% decrease in soybean production in the long run.

Due to the low competitiveness of local soybeans, soybean imports can enter the market because of the price advantage. The price of imported soybeans is cheaper than local soybeans. The arrival of soybean imports itself also affects market prices. Excessive supply conditions, or it can be said that the import tap is not reduced, causing soybean prices to get lower and finally no longer being able to meet the cost of production factors. This has resulted in many farmers starting to switch to planting other commodities that are more profitable.
This research uses secondary data but is still primary research. Readers of this article are expected to understand one of the problems faced by soybean farmers so that the dream of soybean self-sufficiency is not limited to work planning contained in work programs and disseminated but never realized. Increasing production without reducing imports will further increase the supply of soybeans in the market. The ideal thing is to increase production by reducing the magnitude of the increase in soybean imports so that the market price remains or even increases so that the price is above the cost of production factors.
The full article can be downloaded at the following link:

Prosiding Seminar Hasil Penelitian Tanaman Aneka Kacang dan Umbi 2015


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