Trade and markets
 

Detail

Area
Indonesia
Commodity Group
Oilseeds, oils and meals
Commodity
Soybeans
Date
01/01/2014
Policy Category
Production
Policy Instrument
Production support
Description
Raised government-set farm gate price for soybeans to stimulate domestic production.
Notes
INDONESIA – soybean production support: Since its introduction in July 2013, the government-set farm gate price for soybeans has been gradually raised (see also MPPU Apr. & June’13). Initially fixed at Rp 7 000 per kg, soybean farmers will be entitled to receive Rp 7 500 per kg (USD 630 per ton) during January-March 2014. Meant to stimulate domestic soybean production, the support price is reviewed quarterly, taking into account changes in production costs and profits, as well as food price inflation. Reportedly, since the scheme’s introduction, average soybean yields in the country have improved, leading to an increase in national output.