Jakarta. Surging soybean and packaging costs are squeezing Indonesia’s small-scale tempe producers, forcing them to shrink product sizes and switch to traditional wrapping just to stay afloat.

Rising prices of key inputs, particularly soybeans and plastic, have begun to weigh on micro, small, and medium enterprises (MSMEs) in Lebak, Banten. Producers say the cost pressure has left them with little choice but to adjust output, including reducing tempe sizes to keep retail prices within reach for consumers.

Data compiled by B-Universe suggests the spike in production costs is partly linked to global supply chain disruptions stemming from geopolitical tensions in the Middle East involving the United States, Israel, and Iran, which have affected the distribution of several commodities, including food inputs in Indonesia.

One producer feeling the immediate impact is Abah Momoy (54), a tempe maker in Rangkasbitung, Mekarsari village. He said soybean and plastic prices have risen simultaneously, driving up daily production costs.

He said both soybeans and plastic have become significantly more expensive, describing the situation as “very tough” for small producers who rely solely on tempe production for their livelihood.

Soybean prices, which previously stood below Rp 400,000 per sack, have climbed to around Rp 575,000, sharply increasing his cost structure. Plastic packaging has also surged, with prices rising from about Rp 10,000 to Rp 17,000 per pack. Meanwhile, polypropylene (PP), widely used for food packaging, has jumped from Rp 32,000 to as high as Rp 45,000–Rp 48,000 per kilogram.

To cope, Momoy has reduced the size of his tempe while keeping prices unchanged, though the move has triggered complaints from customers who feel the product has become smaller despite stable prices.

He expressed hope that the government would step in to stabilize raw material prices, warning that continued increases would further burden small businesses dependent on traditional food production.

The cost pressures are not isolated to Lebak. Other MSMEs relying on imported raw materials and domestic distribution networks are facing similar challenges, particularly as consumer purchasing power remains relatively stagnant.

In Jember, E.Java, tempe producers are taking a different approach, returning to banana leaves as a traditional and cost-efficient alternative to plastic packaging.

In Tegal Besar, Kaliwates district, producers say plastic prices have risen from Rp 11,000 to Rp 15,000 per pack within a week, while imported soybeans have increased from Rp 9,800 to Rp 11,000 per kilogram.

A local producer, Rahmatullah from Kedung Piring, said using banana leaves can cut costs significantly, with one batch lasting up to two days compared to daily spending on plastic.

Beyond cost savings, banana leaf packaging is also seen as enhancing flavor and aroma, with many consumers preferring its more savory profile. The shift also offers environmental benefits, though it requires more time and labor.

Producers view this adaptation as a necessary response to rising input costs driven by global factors, including geopolitical tensions. While margins remain under pressure, the switch has, in some cases, helped boost consumer interest.

Still, many are urging the government to act swiftly to stabilize soybean prices, warning that prolonged increases could further strain small-scale tempe businesses.

At the same time, the renewed use of banana leaves is being seen not only as a survival strategy but also as a way to preserve Indonesia’s traditional culinary practices.