Soybeans market in Indonesia

Earlier Report Observations

The soybean market volume in Indonesia declined from 3.5 million t in 2018 to 2.8 million t in 2020. This contraction was primarily driven by a sharp drop in domestic production, as many farmers shifted to other crops due to low soybean prices and the sector's low competitiveness. Despite the government maintaining a zero import duty on soybeans, which supported high import volumes, the fall in local output outweighed import growth.

From 2021 to 2023, the market decline slowed, with volume stabilizing around 2.6 million t. The government targeted expanded planting areas across 14 provinces to reduce import reliance, while global factors such as dry weather in South America pushed import prices to a peak in 2022. In response, state-owned Perum BULOG provided price-difference assistance to tofu and tempeh producers to cushion the impact, and the Ministry of Agriculture promoted local soybean varieties to improve yields.

Domestic production showed signs of recovery from 2022 onward, reaching 326 thousand t in 2023, though import volumes continued to adjust amid fluctuating global prices and ongoing efforts to enhance self-sufficiency.

Production soybeans in Indonesia

In kind, 2018-2021, K t

From 2018 to 2021, Indonesia ranked 16th globally in soybean production.

Top producers of soybeans, 2018-2021

World map of production of soybeans, 2018-2021

Soybean production in Indonesia fell for the third year in a row. In 2021, the country produced 216.4 K t of soybeans, marking a 25.6% decrease compared to the previous year. Over the 2018-2021 period, production dropped by 77.3%, with a compound annual growth rate (CAGR) of -39.0%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

Exports soybeans from Indonesia

Exports in kind, K t

Soybean exports from Indonesia declined for the second consecutive year. In 2021, exports totaled 2 K t, down 21.3% year-on-year. The highest export volume was recorded in 2019 at 4 K t, which saw the largest increase of 69.3%. In 2020, exports fell by 25.1%, the sharpest decline during this period.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K t

Between 2018 and 2021, Timor-Leste was the dominant export partner for Indonesia's soybean shipments in kind, accounting for 75.8% of total flows, while other markets held relatively smaller shares.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, M $ US

The export market exhibited volatility from 2018 to 2021. Volumes reached their lowest point in 2018 and peaked in 2019, showing a 2.4-fold difference. In 2021, Indonesia's soybean exports were valued at 1 M $ US, up 24.2% from 2020. The highest value was recorded in 2019 at 1 M $ US, with the largest increase of 139.9% that year. In 2020, exports experienced the steepest decline of 51.4%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, M $ US

During 2018-2021, Timor-Leste and Malaysia together absorbed 86.3% of Indonesia's soybean exports in value terms, with the remaining volume distributed among smaller markets.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports soybeans to Indonesia

Imports in kind, K t

Indonesia imported 2 490 K t of soybeans in 2021, a slight increase of 0.6% compared to the previous year. From 2018 to 2021, imports decreased by 3.7%, equivalent to an annualized rate of -1.3%. The lowest import volume was in 2020 at 2 475 K t, which saw the largest decline of 7.3%. The highest volume was in 2019 at 2 670 K t, with the largest increase of 3.3% that year.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K t

From 2018 to 2021, Indonesia's soybean imports in kind were heavily reliant on the United States, which supplied 92.2% of the total volume.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, M $ US

After two years of decline, Indonesia's soybean import value rose in 2021. Imports totaled 1 483 M $ US, up 47.8% from the prior year. Between 2018 and 2021, import value increased by 34.4%, translating to an annualized growth rate of 10.4%. The lowest value was recorded in 2020 at 1 003 M $ US, which experienced the largest decline of 5.7%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, M $ US

Over the 2018-2021 period, nearly all of Indonesia's soybean imports in value terms came from the United States, which accounted for 91.6% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021