Biofuel boom costs Indonesians dear
Biofuel boom costs Indonesians dear
By Step Vaessen in Jakarta
Home factories that use soyabeans to make products
such as tempeh, are
struggling to deal with the rising cost of the
basic commodity
Indonesia is struggling with a potential food
crisis, because of rapidly increasing prices for
one of its staple crops.
The cost of soya beans has doubled on the world
market in recent months, making imports
increasingly expensive.
The main cause of the price rise is shifting
production in the US.
Biofuels phenomenon
A US energy bill signed into law last September,
encouraged a massive increase in biofuels, like
ethanol.
Soyabeans and corn once used mostly for food are
now being refined into fuel.
That means soaring prices for Indonesia's "food of
the poor".
Take the case of Tukino. His family has been
running a home factory for the last 34 years,
making bean curd, one of Indonesia's most popular
dishes.
Bean curd is a staple of Indonesians' diet
But never before have soyabeans been so expensive.
The price has doubled during the past few weeks.
Analysts say this is because US farmers are
replacing the crop in order to grow corn for
biofuel instead.
Tukino says: "We are really suffering from this.
We are sweating here everyday just to make ends
meet.
"I am trying to run a business but if this
situation continues a lot of people have to be
laid off."
Bean-curd factories like the one run by Tukino's
family went on strike for three days to protest
against the price increase.
But after consumers began to complain, they
decided to operate again.
Nutritious and cheap
Bean curd has kept many poor Indonesians healthy
for a very long time.
It is very nutritious and it used to be very
cheap, but now Indonesia's favourite food is
becoming very expensive and hard to get. And this
is already creating unrest.
To calm down sentiments, bean curd and tempeh,
another popular soybean dish, are being sold again
on the market, much to the relief of many
Indonesians.
But while the price is still the same, the sellers
have made the portions much smaller.
One resident of Jakarta said: "My children don't
want to eat anything when there is no tempeh or
beancurd. They simply don't feel well if I don't
serve it to them.
"Normally I could buy it at a food stall, but
there hasn't been enough in the market for quite a
while."
Farmers' view
The Indonesian Farmers Union says the country
should become self-sufficient again and start
growing soyabeans as it used to do in the past.
Henry Saragih, from the Indonesian Farmers Union,
says: "This is a basic need which is now very hard
to get.
Soyabean goods are being sold again for
the same price but in smaller sizes
"This is not only turning in to a social crisis,
but this could also cause hunger and malnutrition."
The government admits that it should have worked
harder to achieve self-sufficiency.
Sutarto Alimoeso, an agriculture ministry official
in charge of food crops, told Al Jazeera: "This is
an international problem, we cannot stop free
trade.
"But we should indeed have protected our farmers
more. There is not a single country that doesn't
protect its own farmers. We should have been
braver."
For the time being the Indonesian government has
decided to control the price of soybeans by asking
the state food company to buy stock overseas.
This could prevent a deepening food crisis in the
country for now.
Still, in the long term, other measures may have
to be found.
Posted 07:10
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