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View all search resultsThe government’s latest changes to the import regime have expanded the range of food and agricultural products subject to tighter import controls, creating bottlenecks that are raising input costs and constraining supply. At the same time, weaker-than-expected demand from the Free Nutritious Meals (MBG) programme has left producers facing pressure from both sides: higher production costs and limited demand for their output.
Local soybean farmers have produced just 8 percent of national demand over the past five years, according to a senior food official, who also said the government was cooking up a variety of strategies, including a targeted subsidy, to boost output to accelerate its self-sufficiency agenda.
Indonesia’s ambitious B50 biodiesel mandate promises total energy independence, but a volatile mix of surging food costs, environmental degradation, and fiscal strain could turn this historic experiment into a costly economic gamble.
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