Bogor (ANTARA) - Trade Minister Budi Santoso described the Rp2,000-per-kilogram soybean subsidy as a government instrument to shield people from global price volatility, primarily targeting producers of tempeh, an Indonesian savory fermented food.
He said the policy was addressed during a meeting chaired by Coordinating Minister for Food Affairs Zulkifli Hasan on Tuesday (June 9), where the government weighed options to maintain tempeh production amid rising soybean prices.
“Considering the significant increase in soybean prices, we decided to provide assistance to tempeh producers,” Santoso said in Bogor, West Java, on Friday.
He explained that the government plans to subsidize approximately 250,000 tonnes of imported soybeans during the initial phase of implementation, with the aim of easing production costs and maintaining price stability.
The minister confirmed that soybean prices have been affected by recent global developments, citing various armed conflicts and geopolitical tensions that have disrupted supply chains and international food trade.
As a result, he said, the subsidy program is expected to help tempeh producers maintain affordable prices for consumers.
Speaking after Tuesday’s coordination meeting, Minister Hasan pointed out that the subsidy is primarily intended as a buffer for the domestic market in anticipation of adverse impacts from the weakening rupiah, given Indonesia’s heavy reliance on soybean imports.
The government has decided to assign state logistics company Bulog to roll out the subsidy to aid tempeh and tofu producers, he added.
He estimated the budget required for the first stage of the subsidy at Rp500 billion, equivalent to roughly US$27.8 million.
President Prabowo Subianto has received a report on the subsidy plan, he said, adding that technical matters will be addressed by Bulog and the Ministry of Finance.
Meanwhile, Bulog President Director Ahmad Rizal Ramdhani emphasized that subsidized soybeans would be distributed directly to tempeh and tofu producers to ensure lower input costs and stabilize prices.
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Translator: Maria C, Tegar Nurfitra Editor: M Razi Rahman Copyright © ANTARA 2026
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