Tempe Artisans Strangled by Soybean Price Hike, Analyst Urges Reducing Import Dependency
JAKARTA, KOMPAS.com - Tempe artisans in Cilincing, North Jakarta, are complaining about the rising soybean prices in the market.
One tempe artisan, Anto (38), feels anxious about the soybean price increase, even though it is not yet significant.
“It’s true (soybean prices have risen); before Eid, it was Rp 9,600 per kilogram (kg), now it’s already Rp 10,800,” said Anto when interviewed by Kompas.com at the location on Friday (24/4/2026).
This means that with a Rp 1,000 per kg increase in soybean prices, he has to add around Rp 100,000 to his daily capital.
Economist M Rizal Taufikurahman assesses that tempe and tofu artisans are still experiencing real cost pressures despite the soybean price rise being only around Rp 1,000.
Imported soybean prices are currently rising in the range of Rp 10,500 to Rp 11,500 per kg. This increase is occurring alongside energy and distribution costs.
“This creates a classic cost-push inflation situation in the people’s food sector. The root problem lies in the supply structure that is highly dependent on imports,” said Rizal when contacted by Kompas.com on Friday.
Indonesia’s current national soybean needs reach 2.6 million to 2.7 million tons per year, while domestic production is only around 200,000 to 300,000 tons.
This means that more than 85 percent of Indonesia’s soybean needs still rely on imports.
Rizal explained that if this condition continues, every depreciation of the rupiah exchange rate, for example moving around Rp 17,000 per US dollar, will directly increase domestic raw material costs, without any buffer from domestic production.
On the other hand, soybean price pressures are also triggered by increasingly unstable global factors. Rising energy prices are driving up logistics and shipping (freight) costs, while the global supply chain has not fully recovered after geopolitical disruptions.
In addition to soybeans, rising plastic packaging prices are also strangling tempe artisans in Indonesia.