Weakening Rupiah, Tofu and Tempe Craftsmen in West Java Affected by Soybean Price Soaring

The strengthening of the US dollar exchange rate against the rupiah has had an impact on the price of soybeans imported from abroad.

KOMPAS/FABIO MARIA LOPES COSTA

Soybeans imported from the United States are often used by tofu and tempeh makers, especially in West Java.

BANDUNG, KOMPAS — The rupiah exchange rate against the US dollar weakened, reaching Rp. 16,152 per US dollar as of Wednesday (24/4/2024). This condition has caused tofu and tempe craftsmen in production center areas such as West Java to be hit due to the surge price of soybeans imported from abroad.

The chairman of the West Java Tempe and Tofu Craftsmen Association, Muhammad Zamaludin, stated in Bandung that soybean prices per kilogram have reached IDR 11,000. Previously, the price of soybeans per kilogram was IDR 10,500 a month ago.

Zamaludin stated that tofu and tempeh artisans have not raised the selling prices of their products until now. There are a total of 700 business owners involved in tofu and tempeh making in the West Java region who are members of a community led by Zamaludin.

"We still sell one board of tofu to consumers for IDR 60,000. One board contains 80 to 100 pieces of tofu," said Zamaludin.

KOMPAS/FABIO MARIA LOPES COSTA

One of the tofu production businesses is seen in the Cibuntu area, Bandung City, West Java, on Wednesday (24/4/2024). The price of one board of tofu containing 100 pieces of tofu is worth IDR 60,000.

He said that business actors making tofu and tempeh would be forced to increase the selling price of their products if soybean prices continued to soar. The soy ingredients used by the craftsmen are imported from the United States.

"Business actors must raise the prices of tofu and tempeh to avoid losses due to increasing production costs. Moreover, they have dozens to hundreds of employees," he said.

Also read: Soybean Prices Soar, Tofu Crafters in Bandung Lose Millions of Rupiah

Zamaludin assessed that the increase in the prices of tofu and tempeh will also have an impact on consumers, especially those who run culinary businesses. "Government intervention is needed so that we can still obtain soybeans at an affordable price," he said.

Crafters of tofu and tempeh must raise the selling price if soybean prices continue to surge. Soybeans used by artisans are imported from the United States.

Surtigalih, one of the business actors in the tofu factory center in Cibuntu, Bandung, stated that the increase in soybean prices has had a significant impact on the craftsmen when met. This is different from previous years when soybean prices actually decreased after Eid al-Fitr.

KOMPAS/FABIO MARIA LOPES COSTA

A tofu seller is seen at Kosambi Market in Bandung, West Java on Thursday (November 23, 2023). The price of tofu per piece ranges from IDR 1,400 to IDR 2,000.

"We hope that the central government can take subsidy policies if soybean prices continue to soar. Soybeans are one of the basic needs for the community, but they still have to be imported from abroad," he said.

Also read: Tofu craftsmen slump due to soybean price increase

Meanwhile, Head of the Distribution, Trade and Metrology Supervision Division of the Bandung City Trade and Industry Office, Meiwan Kartiwa, stated that they will monitor the increase of soybean and tofu prices in several traditional markets. He will coordinate with the Logistics Affairs Agency regarding this matter.

"We will report the monitoring results of several traditional markets to the West Java Provincial Government. Regarding the intervention in the price of imported soybeans, this is the authority of the central government," said Meiwan.