Zero Percent Soy Import Duty Sparks Uproar

Fitri Novia Heriani, Andin Aditya Rahman

The step by the Government to eliminate import duty on soya beans by issuing Minister of Trade Regulation No. 45 of 2013 has invoked widespread criticism from numerous stakeholders.

According to the Ministry of Trade, the policy aims to counteract the soaring price of soya beans as a consequence of the IDR’s recent decline against the USD and increased soy imports to meet domestic demand.

However, in the view of Aria Bima, Deputy Chairman of Commission VI at the House of Representatives, this policy brings minimal benefits. The Government should have given subsidies to soya bean farmers as a measure to deal with the increasing price of soya beans.

Soya bean farmers are also voicing criticism against this latest move by the Government. Timin Kartodiharjo, a farmer and seed breeder from Nganjuk, believes that the policy approaches are not directed towards the vision of a self-supporting soya bean sector by 2014.

“The mechanisms are complicated, from seed incentives to fertilizer and pesticide incentives. And, it’s actually not as effective because the seeds are perfunctory,” Timin said during a press conference in Jakarta on Wednesday.

He added that current circumstances are forcing soya bean farmers to think about planting other crops, anything but soy.

Said Abdullah, Advocacy and Networking Manager at the People’s Coalition for Food Sovereignty (KRKP), also criticized the policy. He said that the zero percent import duty regulation will only cause prices to continuously decline and consequently decrease domestic soy production.

In the end, the self-supporting soya bean sector vision will no longer be visible on the horizon with Indonesia’s food sovereignty also fading with it.

“This regulation clearly shows that the Government is not on the side of domestic soy farmers,” he asserted.

In line with the above views, Enny Sri Hartati, Director of the Institute for Development of Economics and Finance (INDEF), also questioned the Government’s purpose in liberating import duties on soy.

The fluctuating domestic prices of soy are solely caused by the low productivity of local soy, according to the INDEF Director.

By imposing a zero-percent import duty, the Government has effectively doomed the price of local soy, which is already aggravated by the minimal incentives provided to soy farmers.

“It is contradictive indeed. What is it that the Government really wants?” questioned Enny.

She expressed the criticism that the Government should have introduced order to the currently chaotic soy trade system rather than eliminating the import duty on soy which will only benefit importers.

Enny further asserted that it is about time the Government steps in to decrease the production costs of soy farmers by providing high quality fertilizers and seed subsidies.

(hot/kc)

Fitri Novia Heriani, Andin Aditya Rahman

The step by the Government to eliminate import duty on soya beans by issuing Minister of Trade Regulation No. 45 of 2013 has invoked widespread criticism from numerous stakeholders.

According to the Ministry of Trade, the policy aims to counteract the soaring price of soya beans as a consequence of the IDR’s recent decline against the USD and increased soy imports to meet domestic demand.

However, in the view of Aria Bima, Deputy Chairman of Commission VI at the House of Representatives, this policy brings minimal benefits. The Government should have given subsidies to soya bean farmers as a measure to deal with the increasing price of soya beans.

Soya bean farmers are also voicing criticism against this latest move by the Government. Timin Kartodiharjo, a farmer and seed breeder from Nganjuk, believes that the policy approaches are not directed towards the vision of a self-supporting soya bean sector by 2014.

“The mechanisms are complicated, from seed incentives to fertilizer and pesticide incentives. And, it’s actually not as effective because the seeds are perfunctory,” Timin said during a press conference in Jakarta on Wednesday.

He added that current circumstances are forcing soya bean farmers to think about planting other crops, anything but soy.

Said Abdullah, Advocacy and Networking Manager at the People’s Coalition for Food Sovereignty (KRKP), also criticized the policy. He said that the zero percent import duty regulation will only cause prices to continuously decline and consequently decrease domestic soy production.

In the end, the self-supporting soya bean sector vision will no longer be visible on the horizon with Indonesia’s food sovereignty also fading with it.

“This regulation clearly shows that the Government is not on the side of domestic soy farmers,” he asserted.

In line with the above views, Enny Sri Hartati, Director of the Institute for Development of Economics and Finance (INDEF), also questioned the Government’s purpose in liberating import duties on soy.

The fluctuating domestic prices of soy are solely caused by the low productivity of local soy, according to the INDEF Director.

By imposing a zero-percent import duty, the Government has effectively doomed the price of local soy, which is already aggravated by the minimal incentives provided to soy farmers.

“It is contradictive indeed. What is it that the Government really wants?” questioned Enny.

She expressed the criticism that the Government should have introduced order to the currently chaotic soy trade system rather than eliminating the import duty on soy which will only benefit importers.

Enny further asserted that it is about time the Government steps in to decrease the production costs of soy farmers by providing high quality fertilizers and seed subsidies.

(hot/kc)

2026 Hak Cipta Milik Hukumonline.com
Cookies Info