Rupiah Weakens and Soybean Prices Rise, Leaving Tofu Producers Struggling

The ongoing weakening of the rupiah is impacting the kitchens of the nation’s food industries. One of the sectors most affected is tofu producers, who rely heavily on imported soybean supplies as their primary raw material.

The rise in soybean prices over recent months has significantly eroded the profit margins of tofu producers. Simultaneously, business owners face a dilemma, as it is difficult to increase selling prices given that public purchasing power has not yet fully recovered.

This situation is being experienced by Sutisna, the owner of the NN Bandung Tofu Factory in the Cilodong area, Depok, West Java. According to him, production cost pressures stem not only from the rising price of soybeans but also from various supporting materials such as packaging plastic, salt, and spices.

“With the increase in the price of soybeans and almost all other raw materials—from plastic to salt and turmeric—it automatically results in thinning profit margins,” Sutisna stated during a conversation at the NN Bandung Tofu Factory in Cilodong, Depok, on Wednesday (4/6/2026).

This phenomenon illustrates how the weakening of the rupiah is being felt directly within the real sector. Unlike local commodities, the Indonesian tofu industry remains highly dependent on imported soybeans; consequently, almost every increase in the US dollar exchange rate leads to higher production costs.

Data from the Ministry of Agriculture shows that national soybean requirements reach approximately 3 million tonnes per year. However, domestic production remains far from sufficient, with more than 80 per cent of the demand met through imports. In recent years, Indonesia’s soybean import volume has ranged between 2.4 million and 2.7 million tonnes per year, with the majority originating from the United States and Brazil.

This high level of import dependency makes the tofu and tempeh industries one of the sectors most sensitive to fluctuations in the rupiah exchange rate. When the rupiah weakens, the price of soybeans purchased by importers automatically increases, even if international commodity prices remain relatively stable.