RRI.CO.ID, Jakarta - Indonesia’s weakening currency is putting significant pressure on small tofu and tempeh producers. Rising soybean prices have significantly increased production costs.

Before the Iran-US conflict escalated, soybeans were priced between Rp9,000 and Rp9,600 per kilogram. Today, prices have climbed to around Rp10,800 per kilogram, an increase of up to 16.7%.

For small tofu businesses using about 400 kilograms of soybeans each day, production costs have risen by at least Rp480,000 daily. Higher cooking oil prices have added further pressure to operating expenses.

As a result, total additional production costs can reach around Rp15 million per month. Many producers are struggling to absorb these increases while keeping products affordable.

Some tofu makers have only slightly raised prices. A small tofu block that previously sold for Rp36,000 is now being sold for around Rp38,000.

Industry players say the current surge in soybean prices is unusual. Historically, soybean prices tend to remain lower during this period of the year.

Price increases are typically more common in the fourth quarter. If the Rupiah remains weak through the end of the year, soybean prices could rise to around Rp13,000 per kilogram.

Tempeh producers are facing similar challenges. Instead of raising prices directly, some have reduced package sizes while keeping prices unchanged.

For example, a tempeh package that previously weighed 250 grams now weighs about 230 grams. This represents a reduction of roughly 8% in product weight.

Producers are also dealing with higher packaging costs, including more expensive plastic materials. This practice of reducing size while maintaining prices is widely known as shrinkflation.

In some regions, producers have opted for a different approach. Tempeh prices reportedly increased by as much as 20% in May as businesses tried to offset rising costs.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)