Indonesian farmers concerned over state monopoly plans to import soybean meal

The Indonesian government’s intention to transfer soybean meal (SBM) import rights to state-owned enterprises has triggered mixed reactions among the country’s poultry producers. Holik, owner of Telur Intan Farm in Malang, East Java, said the initiative could only be effective if its primary goal is to support small-scale farms rather than generate commercial profits for the state sector.

“This measure is acceptable only if the government truly intends to support independent farmers, not turn supplies into a profit-making business at the expense of agricultural producers,” he told Asian Agribiz.

As an egg and broiler meat producer, Holik expressed serious concern about potential increases in feed costs and supply disruptions—problems the industry has already faced in the past during corn import restrictions.

Key Risks for Farmers

Market participants believe the main risk is that the involvement of state-owned enterprises could have the opposite effect if profit motives dominate their operations:

• Rising production costs: import monopolization often leads to rigid pricing mechanisms.

• Logistical delays: state entities may be less efficient than the private sector in managing supply chains.

• Threats to small producers: independent farmers are the most vulnerable to price volatility in feed ingredients.

Holik urged the government to assume the role of a buffer stock operator. In his view, authorities should focus on ensuring feed availability and building strategic reserves, enabling small farms to survive and grow amid market instability.

Tags: Indonesia, soybean meal, imports, restrictions