Legal Analysis Regarding the Impact of Import Policy on Food Security in West Java

Case Study: Soybean Farmers in Cibalong District, Garut Regency, West Java

Hannin PN Soulthoni; Dewi Y Wijayanti

Padjadjaran University; Parahyangan Catholic University

Abstract

Indonesia's agreement with the WTO raises various pros and cons due to problems
regarding non-tariffs. This non-tariff problem has led to the growing development of imported
goods and the easy process of foreign goods entering the Indonesian market, especially in
the agricultural sector. We can face this problem if farmers in Indonesia are ready for the
onslaught of the free market. In reality, farmers in Indonesia have not been able to deal with
it, so many local farmers in Indonesia are increasingly crying and eroding.
Soybean is one of the most important food ingredients for Indonesians. Soybean is
widely used as a raw material for various food products, such as tempeh, tofu, and soy milk.
However, soybean production in Indonesia is unable to meet domestic demand, so Indonesia
has to import soybeans from abroad, especially from the United States and Brazil.
In Indonesia, the soybean farming industry is a vital component of the economy in
West Java, especially in Garut Regency, which is the country's largest producer of soybeans.
This soybean farming provides a source of income for the farmers and also contributes to the
growth of the local economy. One of the main impacts of import policies in Indonesia on
farmers in the Garut Regency is the fall in soybean prices. The increase in soybean imports
from Indonesia resulted in a surplus of soybeans on the market, causing a decrease in
soybean prices. This certainly harms local soybean farmers because they are unable to sell
their soybeans at a higher price. So farmers find it difficult to cover production costs so that
the profit margins are reduced.
In addition to the decline in soybean prices, import policies also affect the
competitiveness of local soybean farmers in the market. The entry of imported soybeans into
the Indonesian market makes it difficult for local farmers to compete because imported
soybeans are often cheap and also have better quality. Thus, it is difficult to set yourself up to
provide prices in the local market.
In addition, import policies also affect the production activities of soybean farmers in
Garut Regency. The reduction in prices certainly reduces incentives for local farmers to invest
in soybean cultivation, resulting in a decrease in the level of production and also in the quality
of soybeans. This has a negative impact because reduced soybean production has reduced
the contribution of the soybean farming industry to the local economy. Lower soybean prices
and the reduced competitiveness of local farmers in the market have a negative impact on the
income of soybean farmers and the local economy. To overcome the negative impact of import
policies, the government needs to consider the impact of import policies on local agricultural
industries, especially soybean farmers in Garut Regency.
Soybean import policies are governed by several regulations, including Presidential
Regulation Number 44 of 2016 concerning the Negative Investment List, Decree of the
Minister of Trade Number 329/M-DAG/PER/4/2013 concerning Provisions for the Import of
Soybean and its Derivative Products, and Decree of the Minister of Agriculture Number
125/KPTS/SR.310/7/2014 concerning Technical Requirements and Certification Procedures
for Soybean Seeds. These decisions become the legal basis for importing soybeans into West
Java.
 This study aims to analyze the impact of soybean import policies on food security in
West Java, with a focus on soybean farmers in Cibalong District, Garut Regency, West Java.
The method used is descriptive qualitative analysis with data collection techniques through
interviews, observation, and literature studies.
Based on a legal analysis regarding the impact of import policies on food security in
West Java, especially for soybean farmers in Cibalong District, Garut Regency, it can be
concluded that soybean import policies that do not pay attention to domestic production
conditions can have a negative impact on farmers and food security in West Java overall.
Therefore, efforts are needed to optimize domestic soybean production so as to
minimize dependence on soybean imports. In addition, a soybean import policy that is
transparent and in favor of the interests of domestic farmers is also needed. This is important
to maintain the sustainability of soybean production and food availability in West Java. In this
case, the government may consider providing incentives for domestic soybean farmers, such
as fertilizer subsidies, agricultural tools, and technical training. In addition, the government can
tighten soybean import requirements and closely monitor soybean imports so as not to have
a negative impact on domestic food production and availability.
Thus, the government's role is very important in maintaining the sustainability of
soybean production and food security in West Java. In addition, support from various parties,
such as producers, distributors, and consumers, is needed to ensure sufficient food availability
and stable prices.