Rising soybean prices force Indonesian tofu and tempeh producers to cut output

Soybean prices in Indonesia have risen by around 10% to about Rp13,200/kg, increasing pressure on tofu and tempeh producers. The government is already considering subsidies for soybean buyers to help contain production costs and retail prices.

In some regions, soybean prices have increased from around Rp9,500 to as much as Rp12,000/kg. As a result, small processors are being forced to reduce product sizes, cut production volumes or temporarily halt operations.

The issue is particularly important because tofu and tempeh are among the most affordable sources of protein for Indonesian consumers. Higher raw material costs can quickly feed through into retail prices and add to food inflation.

Indonesia’s Trade Ministry links the increase in soybean prices to global commodity market dynamics and higher related costs, including energy, transport and packaging. The government is already discussing possible support measures with relevant ministries.

Subsidies could partly offset higher costs for processors and slow further increases in tofu and tempeh prices. However, the government would also need to consider the additional budget burden and how to target the support effectively.

Tags: Indonesia, prices, soybean