The Effects of the Imported Soybean Volume, World Soybean Prices, Exchange Rate, and Domestic Soybean Production on Local Soybean Prices in Indonesia

This research is a research about one of agriculture's superior product in Indonesia that is soybean, which has important role to fulfill the food needs of Indonesian society. This research takes Title: "The Effects of The Imported Soybean Volume, World Soybean Price, Exchange Rate, and Domestic Soybean Production on Local Soybean Price in Indonesia." The purpose of this study was to determine the effect of independent variables (the import volume of soybean, soybean prices world, exchange rate, and soybean production in the country) on the dependent variable (the price of local soybean in Indonesia), as well as to determine which variables are most influential on the price of local soybean in Indonesia. Data analysis used is Multiple Linear Regression Analysis by using Eviews 9. Type of data are time series which take period during 10 year from year 2005 to 2015. Sources of data were obtained from official websites such as Central Bureau of Statistics, Ministry of Trade, Bank Indonesia, FAO, Ministry of Agriculture, World Bank, as well as from research journals and internet. Based on the results of research and data analysis conducted using eviews 9 shows that: (1) soybean import volume has positive and insignificant effect on local soybean price in Indonesia. (2) The price of soybeans has a positive and significant impact on soybean prices in Indonesia. (3) The exchange rate has a positive and insignificant effect on local soybean prices in Indonesia. (4) Domestic soybean production has a positive and significant effect on local soybean price in Indonesia. Of the four independent variables, there are two significant effect that is the world soybean price and domestic soybean production and two variables that have insignificant effect that is the exchange rate and volume of soybean import. The implications of the above conclusions that to reduce dependence on world soybean prices, Indonesia should be able to increase the productivity of the domestic soybean, the government should pay more attention to the welfare of farmers, better utilization of agricultural land again and the people have to take care of the environment around the soybean farms, not serve as consumers only so, Indonesia no longer need to import soybeans in soybean food needs. To improve domestic soybean production need for modern technology in order to achieve soybean quality and to increase the amount of domestic soybean production more. Governments and communities should be able to cooperate in this regard