'TEMPE' TO DISAPPEAR FROM DINING TABLES AGAIN?

By Andi Abdussalam

Jakarta, Sept 7 (Antara) - Will 'tempe' and tofu disappear from dining tables and cause millions of stomachs to growl once again, as suppliers of the popular side dishes stop production?     Tempe, which is fermented soybean cake, along with tofu, are popular side dishes, often served at served at 'warteg' (short for 'Warung Tegal' or food stalls) and other eateries in Indonesia, a country of over 240 million.          Over the past several years, tempe and tofu, which are main side dishes for lower-class consumers, have often become scarce when the price of soybean, raw material for the side dishes, skyrocketed.            In January 2008, for example, some 3,000 tempe manufacturers stopped production for three days, causing tempe and tofu to disappear from menus.  Manufacturers then staged a rally outside the presidential palace, urging the government to stabilize rising soybean prices.          A tempe shortage again occurred in July 2012 when tempe and tofu disappeared from traditional markets and eateries after producers stopped production to protest high soybean prices     The worldwide increase in the price of soybeans significantly affected the price at home, since about 70 percent of the country's soybeans are imported.          Indonesia only produces 851,286 tons, or about 29 percent of the nation's needs. So, Indonesia has had to import 2,087,986 tons.          That is considered why, as the rupiah depreciates against the US dollar, the price of soybean at home is increasing.          Data from the Central Bureau of Statistics (BPS) placed the country's demand for soybean in 2012 at 2.2 million tons, of which 83.7 percent was for food, 14.7 percent for soy sauce and other condiments, 1.2 percent for seed and 0.4 percent for animal feed.          Currently, soybean prices remain high and, for soybean farmers, prices have reached an average of Rp9,000 per kilogram. Domestic production is only 700 thousand tons, while domestic demand has reached 2.5 million tons of soybeans per year.          As in 2008, tempe and tahu producers have threatened to stop production for three days this month to protest continuing soybean price hikes.          According to the Association of Tofu and Tempe Producers (Gakoptindo), its members will halt production between September 9 and 11 to protest rising soybean prices.          "The increasing price of soybeans, as a result of the rupiah's depreciation against the US dollar, has forced many tofu and tempe producers to reduce their production or reduce the size of their work force.  The aim of the protest is to warn the government and put pressure on it to address this matter immediately," said Gakoptindo Chairman Aip Syarifudin on Thursday.          Aip has urged the government to create policies that help normalize the price of soybean. The current price of soybean in Indonesia is around Rp9,000-10,000 per kilogram, an increase from the earlier price of Rp8,700.          Now, in different regions, producers have begun to stop or reduce production. In Bengkulu, for example, some 50 percent of 115 tofu and tempe makers have stopped production to protest soybean price increases.          Meanwhile, Chairman of Bengkulu's Tahu-Tempe Cooperatives Unit Mas Agus Yunus said the sharp increase in the price of soybean has led to some 50 percent of tofu and tempe makers to stop production.          Mas Agus made his remarks during  a meeting with officials from the local industrial services, national food resilience agency and Bangkulu regional government secretary M Nasyah.          He said that the present soybean price of Rp9,500 per kg at the distributor's level was no longer economical for tofu and tempe makers to continue production.          "The price level that we can still consider economical is Rp7,000 per kg, but in the market the price has now reached Rp9,500 per kg," Mas Agus said.  Therefore, he added, half of the producers in Bangkulu City stopped production. "After all, the price of tempe and tofu does not increase," he added.          In Cirebon, West Java, producers have also threatened to stop production as they continue to suffer losses caused by the rising price of soybean. The price of imported soybean has soared recently, largely because of the falling value of the rupiah against the US dollar.          The Rupiah has lost much of its value, currently trading at more than 11,000 per dollar, compared to some 9,500 a few months earlier.          "Producers of tempe and tofu in Cirebon might have to stop operations as they cannot stand to continue losing," Tarsono, a local producer, said on Saturday.      Tarsono noted that producers continue operating only so they might fill their commitments to customers, although they have to absorb losses.          Producers were forced to cut production and laid off some workers, hoping that prices would soon return to normal, but the price of the basic material remain high and is climbing higher.          In its efforts to help solve the problem, the Indonesian government is making soybean supplies a priority for tempe and tofu producers - rather than stabilising prices that have reached Rp9,000 per kilogram.          "For soybeans, the key factor is to ensure that the supply of soybeans remains available for tofu and tempe producers," said Vice Minister of Trade Bayu Krisnamurthi after a coordination meeting at the Coordinating Ministry for Economic Affairs on Wednesday .          Bayu added that assuring supplies is the government's priority, noting that the current amount of available domestic soybeans remains high and will be increased in the near future.          "Within a matter of weeks, there will be two ships, each carrying 60 thousand tons of soybeans to Indonesia, totaling 120 thousand tons, and I 'm sure the supply will be safe," said Bayu.          Also, according to the Ministry of Trade, the government will increase soybean import allocations from the State Logistics Agency, Bulog, to 60 thousand tons until the end of 2013.          Director General of Foreign Trade of Trade Ministry Bachrul Chairi said Bulog has been allocated an additional 40 thousand tons for importing, to reach 60 thousand tonnes.          "In total, the government's importation allocation was 584 thousand tons, plus the additional 40 thousand tonnes or, at least, 624 thousand tons," added Bachrul Chairi.          In the meantime, Gakoptindo has also received a 20 thousand ton import allocation.          Yet, despite the new policies, the purchase price of soybean remains high, averaging Rp9,000 per kilogram.          Of note, while the nation's demand for soybean has hit 2.5 million tons per year, the domestic soybean production stands at only 700,000 tons.***3*** (T.A014/INE/B003) (T.A014/A/BESSR/Bustanuddin) 07-09-2013 14:19: