(Bekasi, 7th) — Indonesian tofu and tempeh producers in the Bekasi area of West Java are facing increasing cost pressures due to global price fluctuations, with their business margins continually squeezed and a knock-on effect on staple food supplies.
Industry players pointed out that rising prices of imported soybeans and plastic packaging are forcing small producers to reduce product sizes and cut back on manpower to keep operations running.
Deden, a tofu producer located in Cikarang Barat, stated that in order to sustain the business he has built over the years, he has already reduced product sizes and temporarily laid off nearly half his staff.
Meanwhile, tempeh producer Sukheh reported that soybean prices have risen from 10,000 rupiah per kilogram to 10,900 rupiah, and almost every time a new shipment arrives, prices are adjusted upwards. At the same time, the price of plastic roll material has increased from 270,000 rupiah to 380,000 rupiah, further squeezing profit margins.
Despite the continuous rise in costs, most producers still dare not raise retail prices, worrying it could hit price-sensitive consumer demand. Instead, they choose to reduce product quantities to maintain sales volume.
Local trade officials have confirmed the price increases but stated that soybean supplies remain sufficient, and believe that downsizing product sizes is a reasonable strategy to respond to market volatility.
On another note, the government is seeking to diversify naphtha import sources in response to risks of supply instability from the Middle East.
Trade Minister Budi Santoso stated that ensuring stable naphtha supply is crucial, as the raw material is widely used for the production of plastic resins, rubber, and industrial solvents.
He noted that authorities are exploring import diversification schemes with partners in India, Africa, and the Americas, and are maintaining close coordination with the industry and overseas representatives to keep a close watch on market dynamics.
Deden, a tofu producer located in Cikarang Barat, stated that in order to sustain the business he has built over the years, he has already reduced product sizes and temporarily laid off nearly half his staff.
Meanwhile, tempeh producer Sukheh reported that soybean prices have risen from 10,000 rupiah per kilogram to 10,900 rupiah, and almost every time a new shipment arrives, prices are adjusted upwards. At the same time, the price of plastic roll material has increased from 270,000 rupiah to 380,000 rupiah, further squeezing profit margins.
Despite the continuous rise in costs, most producers still dare not raise retail prices, worrying it could hit price-sensitive consumer demand. Instead, they choose to reduce product quantities to maintain sales volume.
Local trade officials have confirmed the price increases but stated that soybean supplies remain sufficient, and believe that downsizing product sizes is a reasonable strategy to respond to market volatility.
On another note, the government is seeking to diversify naphtha import sources in response to risks of supply instability from the Middle East.
Trade Minister Budi Santoso stated that ensuring stable naphtha supply is crucial, as the raw material is widely used for the production of plastic resins, rubber, and industrial solvents.
He noted that authorities are exploring import diversification schemes with partners in India, Africa, and the Americas, and are maintaining close coordination with the industry and overseas representatives to keep a close watch on market dynamics.