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Indonesian tofu, tempeh producers struggle amid global price shocks

Bekasi, W Java (ANTARA) – Indonesian tofu and tempeh producers in Bekasi, West Java, are struggling to stay afloat as global price shocks push up costs of key inputs, squeezing margins for staple food producers.Higher prices for imported soybeans and plastic packaging have forced small-scale producers to shrink product sizes and cut labor, highlighting how global instability is affecting everyday foods.Deden, a tofu maker in Cikarang Barat, said he has reduced product sizes and temporarily laid off nearly half of his workers to keep operations running.“I want to sustain the business I’ve built for years. This is the only way to keep production going,” he said on Tuesday.Tempeh producer Sukhep from Serang Baru said soybean prices have climbed to Rp10,900 (US$0.6) per kilogram from Rp10,000, with increases occurring almost every time new shipments arrive.Packaging costs have also surged, with plastic rolls rising from Rp270,000 to Rp380,000 (US$22.24), further tightening margins.Despite mounting costs, most producers are reluctant to raise retail prices, fearing weaker demand from price-sensitive consumers.Instead, many have opted to reduce product sizes to maintain affordability and sustain sales volumes.“If others raise prices, we may follow. For now, we continue production by making smaller tempeh portions,” Sukhep said.Local trade officials confirmed the price increases but said soybean supplies remain adequate, describing product downsizing as a rational response to volatile global markets.Meanwhile, the government is seeking alternative sources of naphtha, a key raw material for plastic production, amid concerns over supply disruptions from the Middle East.Trade Minister Budi Santoso said securing stable naphtha supplies is critical, as the material is widely used in producing plastic resin, rubber and industrial solvents.Authorities are exploring import diversification with partners in India, Africa and the Americas to mitigate risks.The Trade Ministry is also coordinating with industry groups and Indonesian representatives overseas to monitor developments.Regional economies including Singapore, China, South Korea, Thailand and Taiwan are also facing similar supply pressures.(US$1 = Rp17,000)