"There is no significant increase in domestic demand. Production is likely to be flat this year because we don't see any increase in planted areas," said Benny Kusbini.

Indonesia expects soybean production to increase nearly 3 percent to 934,000 tonnes this year, from 908,110 tonnes in 2010, the state statistics agency said in its first grains forecast for 2011 earlier this month.

The country imports 70 percent of its annual soybean requirements, mostly from the United States, the world's top exporter.

Indonesia has been struggling to increase soybean production to stop its reliance on imported soybeans and aims to scrap soybean imports by 2014. But production has not increased significantly.

Soybeans are used to make tempe and tofu, popular as cheaper ubstitutes for meat, as well as soy sauce.