Sunday, January 27, 2008

Soybean Shortage

Some economists (Syahrir, Pande Radja S) told that the price rise of soybean, and other commodities, is the world trend. The cause is while the demand is continuesly rise, the supply tend to decrease due to tendecy of the farmers to grow corn and other bio-energy commodities.

In Indonesia specificly, demand on soybean for tofu, tempe, ketchup productions are constantly rise, while up to 60% is depend on import. So that, the global price tendency can not be avoided.

The reasonable strategy is to raise up production capacity. However this old strategy has not been maintained well. For farmers to grow soybean were not interested, since the selling price was not interested, compare to other commodities. There was no incentive like to get seed, fertilizer, etc.
The Government should take seriously attention on this issue, because the impact to people economic conditions is significant. And it can be Achilles heel for the rezim, if they fail to manage and overcome the problems. [Risfan Munir, writer of "Participatory Local Economic Development"]

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