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Competitiveness Improvement Strategy of Soybean Commodity: Study of Food Security in East Java – Indonesia

A. Zainuri1 , A. Wardhono1 , Sutomo2 , J. A. Ridjal3

1 Department of Economics, Faculty of Economics, University of Jember, Indonesia

2 Department of Administrative Science, Faculty of Social and Politic Science, University of Jember, Indonesia

3 Department of Agribusiness, Faculty of Agriculture, University of Jember, Indonesia


The increase in soybean prices is caused by an imbalance between the ability to produce soybeans in the country and the increase in demand, so that scarcity of soybean is an issue in an agricultural country like Indonesia. The purpose of this study was to determine the mapping and competitiveness of soybean in East Java, as well as to find out alternative government policies to increase the fair competitiveness of soybean in East Java. Based on the results of the analysis, the recommendation on the most effective policy is the development of competitiveness of local soybean and maintaining the performance of the existing farmer groups, as well as the stabilization of local soybean prices.

Key words Competitiveness, food security, government policy, soybeans.

Price fluctuations of soybean commodity become a crucial issue in Indonesia each year. Empirically the increase in soybean prices is caused by the element of scarcity on the supply side, or domestic soybean production is slower compared to the demand (Elizabeth, 2007; Zakaria et al, 2010; Eden et al, 2012). The imbalance between the ability to produce soybeans and the increase in domestic demand has actually occurred within a fairly long period (Adisarwanto, 2008; Nuryanti, Kustiari, 2007). The empowerment efforts to increase soybean production require reorientation on strict and problem-facing policies, for example through the intensification, extensification, and integrated soybean crop diversification (Sumarno, 2010; Suradisastra, 2008). In addition, it is necessary to carry out and in-depth study of the determination
of policies to enrich the knowledge of the various factors that influence farmers’ decisions grow soybeans. Trade liberalization provides new opportunities and challenges in the development
of an agricultural commodity, including soybean (Ahmad, Tawang, 1999; Firdaus et al, 2012).

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