JAKARTA The Indonesian government has removed the ten percent import tax on soybean effective from today and is studying more measures to deal with the rising price of the commodity in global markets, an official said Monday. The tax could be re-imposed if the price of soybean falls, said Bayu Krisnamurti, Deputy Coordinating Minister for Economic Affairs.

Soybean is a key substitute for crude palm oil. Their prices have jumped over the past few years as record oil prices fuelled demand of alternative energy such as biofuel. Record soybean prices have threatened the existence of small and medium-sized enterprises, which use soybean as a raw material for the production of soybean curd and fermented soybean cake, a staple Indonesian diet especially among poor families.

“The decision to scrap the import tax took into account the fact that the situation is probably not going to ease any time soon. Price pressures on agriculture products may prevail at least four the next for to six months,” said Krisnamurti.

Source: http://news.indahnesia.com