"The government should change the paradigm of its economic development policy."
Jakarta (ANTARA News) - The government should give the soybean farmers incentives in terms of seed and price in order to increase production to meet the domestic demand, according to member of House of Representatives Commission XI, Arif Budmanta, speaking before the government here on Tuesday.

He pointed out that the government, through the state logistics agency Bulog, should maintain buffer stock mechanisms to operate soybean markets and also to improve the business administration.

Arif sought incentives for tofu and soybean cake manufacturers in the form of a price subsidy to motivate them to produce the cakes at a stable price.

"The government should change the paradigm of its economic development policy by making larger provisions of funds in the state budget for the improvement of the nation's soybean production. At present, no efforts are being taken for increasing the soybean production and the impetus is on continuous imports," Arif said.

The current price hike of soybeans at the macro level is due to excessive liberalization of the food sector and the inability of the government to maintain control over the situation.

Similarly, at the micro level it is the lapse in soybean supply nationwide and the commercial system, which are proving detrimental to farmers and tofu and soybean cake manufacturers, Arif added.
(Uu.O001/INE/KR-BSR)

Editor: Priyambodo RH
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