JAKARTA, June 30 (Xinhua) -- Indonesia is not ready to compete in liberlized market because free market mechanism has been proving to pose difficulties to various parties, the food logistic agency said on Tuesday.

    "Indonesia still needs the state logistic agency (BULOG) to play more roles in maintain stability of basic commodities supply and price, like soybean. Free market mechanism for soybean and other main food commodities poses difficulties to many parties, showing that Indonesia is not ready to compete in fee market," the agency's chairman Mustafa Abu Bakar told a seminar here.

    That's why, he said, the government should make a comprehensive and integrated food policy through an agribusiness approach to develop the country's agricultural industry.

    According to Mustafa, the international food crisis triggered various challenges that should have been responded with the nation's internal strength.

    "One of the most important things to do to get out of the crisis is the government's commitment and consistency in enforcing and guarding the national food security, including policies to increase soybean productivity and production," he said.

    Indonesia, he said, should stabilize soybean price and make it affordable for related industries and consumers.

    "That could be done if there is guarantee on stability and continuity of supply to prevent market exploitation," he said.

    For the long term, he said, soybean production productivity should be improved by intensification systems.

    "Soybean farmers should be protected by the government's suitable pricing policy. The domestic soybean supply should be guaranteed in the competitive price level compared to imported soybean," Mustafa said.