The Dynamic Simulation Model of Local Soybean Competitiveness Policy to Support the Soybean Price Stabilization

Abstract

Fluctuations in soybean commodity prices become a crucial issue in Indonesia every year. In this study, it is proposed to conduct a research on the development of a dynamic simulation model for fulfilling the logistics of soybeans, which aims to look at the competitiveness of local soybeans and to support soybean price stability (case study: in Central Java Province). Researchers focus on examining the relationship between variables in the system for fulfilling soybean logistics in Central Java, namely food needs (demand), total soybean availability (supply) and soybean prices using a dynamic system framework. This study also aims to identify factors in increasing local soybean competitiveness towards meeting the needs of consumers with dynamic system simulations to increase local soybean competitiveness in the national market and stabilize soybean prices that can benefit both parties, namely producers and consumers. Based on simulation results, to look at the competitiveness of local soybeans and to support soybean price stability for the next 20 years using software powersim studio 10, the government needs to take action as follows: (1) Dummy monopoly bulog intervention in soybean import price and soybean producer prices; (2) Increasing soybean import tariffs 20%; (3) Increasing soybean local prices with predicting soybean price conditions.