Strategies of Tempeh Producers Amid Soaring Plastic and Soybean Prices Due to Middle East Conflict
Geopolitical conflict between the United States-Israel and Iran has spilled over into the small business sector in Cimahi City, West Java. This is evident in the experience of Kusnanto (57 years old), a tempeh producer on Margaluyu Street, RT 07/02, Cimahi Ward, Central Cimahi Subdistrict.
He claims that the prices of soybeans, the main raw material, and plastic for packaging tempeh have been continuously rising since the escalation in the Middle East heated up. This situation is clearly pressuring the production costs of tempeh run by Kusnanto and others.
“Yes, now it’s starting to skyrocket. Soybeans are already Rp 10,800 per kilogram, normally Rp 8,000-9,000 per kilogram,” said Kusnanto to reporters on Tuesday (7/4/2026).
The price of plastic has even surged more due to the geopolitical conflict in the Middle East. It has reached Rp 50,000 per kilogram from initially Rp 25,000-30,000 per pack. “The most affected is indeed the plastic because the increase is very high, now Rp 50,000 per pack,” Kusnanto stated.
He still relies on imported soybeans because the availability of local soybeans is very limited and unable to meet production needs. Kusnanto’s stock is also starting to dwindle because, according to information he received, imports from abroad are also affected by the geopolitical situation. Every day, he uses around 5-6 quintals of soybeans for various sizes.
In addition, the tempeh he produces still uses 3-ounce sized plastic and it is difficult to switch to banana leaves because they are more expensive. The rise in plastic prices is triggered by the price of polyethylene raw materials, which still rely on imports, thus also affected by the escalation in the Middle East.
“If it’s me, I won’t use leaves yet because they’re more expensive. Just use plastic even though the price isn’t comparable to production,” said Kusnanto.
Amid the high raw material prices, Kusnanto chooses not to raise prices for fear of impacting sales. For 3-ounce size, it is sold at Rp 5,000 per piece, Rp 6,000 per piece for 4-ounce size, Rp 7,000 per piece for 5.5-ounce size, Rp 8,000 per piece for 6-ounce size, and Rp 12,000 per piece for 9-ounce size.