Key insights and market outlook
The Indonesian tempe and tofu industry, represented by GAKOPTINDO, is calling for market segmentation of local and imported soybeans to ensure sustainability and manage inflation risks. The industry's growth remains positive due to increasing consumption, but its resilience depends on supply chain management, production efficiency, and clear policies regarding local vs imported soybeans.
The Indonesian tempe and tofu industry continues to show positive growth trends driven by increasing domestic consumption. However, industry stakeholders have raised concerns about the sector's heavy reliance on imported soybeans and the need for better supply chain management. Wibowo Nurcahyo, Secretary General of GAKOPTINDO, emphasized that market segmentation between local and imported soybeans is crucial for the industry's sustainability and inflation risk management.
The industry faces significant challenges related to raw material sourcing, particularly the availability and pricing of soybeans. While local soybean production has potential, it currently cannot meet the industry's demand, leading to a heavy dependence on imports. GAKOPTINDO is advocating for a balanced approach that supports both local farmers and industrial needs through clear policies on soybean usage.
To address these challenges, GAKOPTINDO is pushing for: 1) Clear segmentation between local and imported soybeans in the market, 2) Support for local soybean farmers to improve quality and quantity, and 3) Efficient supply chain management to reduce production costs. These measures are seen as essential for maintaining the industry's growth trajectory while mitigating potential inflation risks associated with imported commodity price fluctuations.
GAKOPTINDO Policy Recommendation
Soybean Market Segmentation Proposal