Indonesia Should Build Soya Crushing Facilities - Rabobank

Dutch finance company Rabobank says there is potential for Indonesia, Southeast Asia’s second largest soya meal consumer, to enter the soya crushing industry.  “Soyabean crushing facilities could be built in Indonesia to cater to the rising domestic demand for soya meal,” Rabobank senior analyst, grains and oilseeds, Oscar Tjakra said.  

A Rabobank report in November last year said Indonesia consumed around 4.4 million tons of soya meal in 2017 with projections to increase to 5.6 million tons in 2027 due to increasing meat production that requires animal feed, made from soya meal.  On the other hand, Indonesia is a small soyabean oil consumer because of its own cheap domestic palm oil, the country being the top producer of the oil.  However, soya crushing plants would generate positive margins if the produced soyabean oil could be exported.