Indonesia, set to be crowned Southeast Asia's biggest soybean importer this year, buys in 70-80 percent of its soybean needs, mainly from the United States. Inbound volumes are expected to reach a record 2.1 million tonnes in 2013/14.
But a weak currency and high international prices have driven up domestic prices of soybeans in recent weeks, while multiple policy changes over the past six months - such as trying to force traders to buy locally and issuing price controls - have kept the market in turmoil.
"We have revised soybean import regulations by scraping import permits, import quotas and registered importer rules so that anybody can import soybean now," Arlinda Imbang, spokeswoman at the Trade Ministry told reporters, speaking about the latest efforts to relax rules governing the trade.
State food procurement agency Bulog will still buy domestic soybeans from farmers using a floor price, she said, although the ceiling price for tempe and tofu makers would be scrapped.
Soybeans are mainly used in the popular Indonesian food staples tempe and tofu, made by small-scale food processors who went on strike this month to protest against rising prices.
The government had already removed soybean import quotas, but it had maintained the need for import permits, which traders say were issued too slowly to react to demand spikes, in a process that was at risk of corruption.
Earlier this week, Indonesia's chief economics minister temporarily scrapped the 5 percent soybean import tariff, a measure previously backed by the trade ministry before being rejected by the government.
Adding to uncertainty, Indonesia's anti-monopolies regulator has begun a three-month investigation into the country's soybean trade because of the rising domestic prices and the strike by the tempe and tofu makers.
Top importers include FKS Multi Agro Tbk with about 60 percent of the market share, Sungai Budi Group with about 20 percent, and Cargill with around 10 percent.
But a weak currency and high international prices have driven up domestic prices of soybeans in recent weeks, while multiple policy changes over the past six months - such as trying to force traders to buy locally and issuing price controls - have kept the market in turmoil.
"We have revised soybean import regulations by scraping import permits, import quotas and registered importer rules so that anybody can import soybean now," Arlinda Imbang, spokeswoman at the Trade Ministry told reporters, speaking about the latest efforts to relax rules governing the trade.
State food procurement agency Bulog will still buy domestic soybeans from farmers using a floor price, she said, although the ceiling price for tempe and tofu makers would be scrapped.
Soybeans are mainly used in the popular Indonesian food staples tempe and tofu, made by small-scale food processors who went on strike this month to protest against rising prices.
The government had already removed soybean import quotas, but it had maintained the need for import permits, which traders say were issued too slowly to react to demand spikes, in a process that was at risk of corruption.
Earlier this week, Indonesia's chief economics minister temporarily scrapped the 5 percent soybean import tariff, a measure previously backed by the trade ministry before being rejected by the government.
Adding to uncertainty, Indonesia's anti-monopolies regulator has begun a three-month investigation into the country's soybean trade because of the rising domestic prices and the strike by the tempe and tofu makers.
Top importers include FKS Multi Agro Tbk with about 60 percent of the market share, Sungai Budi Group with about 20 percent, and Cargill with around 10 percent.
