JAKARTA, INDONESIA — Indonesian soybean production declines in the 2021-22 marketing year despite plans to by the government to increase the planted area, according to a report from the US Department of Agriculture’s Foreign Agricultural Service (FAS).
Indonesia’s soybean production is expected to not only decrease but remain low in the 2021-22 marketing year at 425,000 tonnes, compared to 475,000 tonnes the previous year. In early 2021, efforts were made to combat increasing domestic soybean prices by the Indonesian government to increase planting by 350,000 hectares but the USDA said it has seen no activity suggesting an increase in plantings. Soybean production continues to decline as corn and rice continue to remain more profitable.
Despite a decline in production, soybean consumption is forecast to jump 52,000 tonnes to 3.2 million tonnes in the 2021-22 marketing year as it is an ingredient for tempeh and tofu production, an affordable and popular source of protein in Indonesia.
The USDA anticipates Indonesia to import 2.8 million tonnes of soybean in the 2021-22 marketing year. During the October 2020-April 2021 period, the country imported 1.6 million tonnes of soybeans, a 7% jump compared to the same period the year before.
While Indonesia does not produce soybean meal, the USDA estimates the country will consume about 5.2 million tonnes of it as demand from the feed the sector continues to rise. This same demand is expected to lead the country to import 5.2 million tonnes of soybean meal in the 2021-22 marketing year.