Indonesian Political, Business & Finance News

Tofu, Tempeh, the Rupiah, and the Never-Ending Dependence

| | Source: KOMPAS Translated from Indonesian | Agriculture
Tofu, Tempeh, the Rupiah, and the Never-Ending Dependence
Image: KOMPAS

This article is an opinion piece, and all content and opinions reflect the personal views of the author and do not reflect the editorial stance.

“We are a nation that eats tofu and tempeh, but we import the soybeans.” This statement by Titiek Soeharto sounds simple, but it actually illustrates the great irony of Indonesia’s food economy.

The country, which has made tempeh and tofu a daily food for its people, still depends on imported soybeans to meet around 85-90 percent of its national needs.

When the Rupiah weakened to nearly Rp17,500 per US dollar in May 2026, this concern resurfaced.

The price of imported soybeans rose, production costs for artisans increased, the size of tempeh shrank, the price of tofu crept up, and small shops began to raise their selling prices.

Once again, the common people are the first to feel the effects of global shocks.

The rest must be covered through imports, mainly from the United States and Brazil.

When the Rupiah exchange rate weakens by only 5-10 percent, the impact is immediately felt in traditional markets and household kitchens.

The irony is that the narrative about soybeans has been going on for a very long time.

Academic studies have been conducted, food security seminars have been held, discussions about self-sufficiency have emerged almost every year, and every time the Rupiah weakens, the tofu-tempeh issue returns as a headline.

However, the final result is almost always the same: imports remain the main solution.

The problem is not because Indonesia is unable to grow soybeans. Many universities produce superior varieties. Cultivation technology is also available. Potential land also still exists in various regions.

However, all policy links run independently. Farmers are reluctant to grow soybeans because the profit margin is lower compared to corn or rice.

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