Expert: Eliminating import duties for soybean is not effective

Selasa, 24 September 2013 | 11:08

Economist of Institute for Development of Economics and Finance (Indef) Eko Listiyanto said eliminating import duties would not be effective to solve problem of soybean in the country. "Indonesia's market structure is dominated by cartel. This policy precisely only gives benefit to importers," Listiyanto said recently.

Earlier, Indonesia imposed similtar policy by eliminating import duties for soybean from five percent to zero percent for one year. In fact, the commodity's price remained high. Yet, today government uses the same policy to curb the high price. Listiyanto said that government's priority was to boost domestic product.

Domestic soybean production only reaches 800 thousand tonnes per year, while domestic needs reaches 2.5 to 2.7 million tonnes per year. Indonesian dependence on imported soybean is worsened by the weakening IDR against USD.