Indonesia: Soybean prices increase due to the fall in the rupee exchange rate against the dollar

Published 2024년 6월 27일

Tridge summary

The article highlights the impact of the weakening Indonesian rupiah against the US dollar on the country's agricultural sector, specifically driving up soybean prices. This situation is causing a ripple effect on the production costs of popular food items like tofu and soybean cake, as these products rely heavily on imported soybeans. Over the past five years, Indonesia has struggled to meet its soybean requirements through domestic production, succeeding only for 9.15% of the time, indicating a persistent reliance on imports that has led to the observed price sensitivity to currency fluctuations.

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Original content

Depok (Indonesia), June 27 (EFE/EPA).- The downward trend in the exchange rate of the rupiah against the US dollar has caused an increase in soybean prices. The impact of rising soybean prices means that one of Indonesians' favorite foods, tofu and soybean cake, also rises. Up to 80% of Indonesia's soybeans come from imports each year. The soybean trade balance is always in deficit, Indonesia's average imports reach two or two and a half million tons per year. In the last five years, Indonesia has only been able ...

Source: ABC.es