Citation:

Febrian Ananta Kahar, Adhitya Wardhono, Edi Wahyudi, Isti Fadah. "Determinants of Soybean Production and Imports in Indonesia" International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 710-717, 2023.

Abstract:

Soybeans have emerged as a principal constituent of Indonesia’s dietary consumption. However, the indigenous soybean production has hitherto proven insufficient to satiate the aggregate demand, thereby necessitating recourse to prolonged soybean imports. Consequently, the present investigation endeavours to scrutinize a panoply of determinants influencing soybean production and imports in Indonesia, as well as delineate the policy ramifications thereof. The study harnesses secondary data in the temporal domain, manifested in time series format, spanning the temporal gamut from 1990 to 2021. The methodological framework of this inquiry employs the Generalized Least Squares (GLS) and Ordinary Least Squares (OLS) approaches as a corroboration of analytical robustness. The findings proffered by this investigation reveal that pivotal factors influencing the escalation of soybean production in Indonesia encompass the augmentation of soybean cultivation acreage, the elevation of soybean market prices, and the depreciation of corn prices. Concurrently, the variables precipitating a decrement in soybean imports within the Indonesian context include the expansion of domestic soybean cultivation acreage, the augmentation of domestic soybean production, and the amplification of domestic soybean consumption. Furthermore, an array of governmental interventions designed to augment soybean production in Indonesia encompasses the enlargement of cultivation acreage and the preservation of price stability. Simultaneously, to alleviate dependence on imports, the government is advised to foster increased soybean production and domestic soybean consumption.

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Keywords:

Soybean; Self-Sufficiency; General Least Square.