Rising soybean costs are squeezing Indonesia’s tofu makers, forcing small producers to shrink portions and accept razor-thin margins as imported beans climb to Rp11,500 per kilogram.
Indonesia tofu makers cut portions as soybean costs rise
For Sudiarto, who has run a home-scale tofu plant since 1997, the economics are deteriorating fast. He said the price of soybeans, all imported from the U.S. at his factory, has moved above Rp11,300 per kilogram from below Rp10,000 earlier this year, pushing his production cost to about Rp1.5 million to Rp1.55 million per quintal of soybeans.
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That leaves little room for profit. He said output from 1 quintal of soybeans generates about 50 boards of tofu sold for around Rp33,000 each, producing gross revenue of roughly Rp1.65 million. After accounting for soybean purchases, labor, firewood and electricity, the cushion is only around Rp100,000 to Rp150,000 — and a small mistake in molding or processing can wipe that out.
The pressure is not just a single-shop problem. Tofu and tempeh makers across Indonesia rely heavily on imported soybeans, so higher U.S. prices quickly feed through to local food inflation and operating costs for small manufacturers. Sudiarto said the only way to keep production going is to make the tofu smaller, essentially preserving volume by reducing size.
The squeeze also highlights how trade and geopolitics ripple beyond commodity markets into everyday food prices. Weakening affordability for small processors can eventually filter into retail prices or lower supply, with the hardest hit likely being household-scale producers already operating at near-break-even levels.
Soybean traders and food processors will be watching whether import costs ease or stay elevated, while for consumers the next risk is a further cut in tofu size or a fresh price increase if margins tighten again.
| Entity | Gains | Losses |
|---|---|---|
| U.S. soybean exporters | ▲Higher export prices | ▼Indonesian processors |
| Indonesian tofu makers | ▲Preserve production volume | ▼Profit margins |
| Consumers | ▲Short-term tofu availability | ▼Higher prices or smaller portions |
| Soybean growers | ▲Stronger bean prices | ▼Food manufacturers |
