MR GHOZALI, a tempeh producer in Central Jakarta’s Kemayoran district, is an angry man. Last week, a mob stormed his house and destroyed equipment he uses to produce tempeh, a type of fermented soya bean cake.

Another tempeh producer in the same area, Mr Sukirno, received a visit from the same rampaging mob soon afterwards.

Tempeh is especially popular in Java, where it is widely consumed as a cheap source of protein.

Both men told the Jakarta Post that they blamed the Indonesian Tofu and Tempeh Cooperative (Kopti) for the violence. Late last month, Kopti urged its members to halt production as a protest against soaring soya bean prices.

The two men, both Kopti members, had ignored the protest.

“This is a democratic country, and Kopti doesn’t have the authority to make us stop production,” complained Mr Ghozali. He said the mob had also caused 2 million rupiah (S$265) worth of damage to his tempeh equipment, although it was “nothing compared to the emotional cost”.

A Kopti gang allegedly also attacked tofu and tempeh sellers at the Rawamangun wet market in East Jakarta. They too had disregarded a Kopti directive to not market the two items.

When food is scarce, tempers can rise fast. In the case of tempeh, however, it is the small-scale producers rather than the consumers who suffer. Because consumers are very price-sensitive, producers are afraid to raise prices for fear their customers will switch to other foods.

Some vendors have reacted by reducing the size of the portions they sell.

Last month, the price of soya bean rose by around 33 per cent to 8,000 rupiah per kg, mainly due to a drought in the United States that resulted in reduced supplies.

Kopti said it wanted the government to abolish a 5 per cent duty on soya bean imports initially imposed in January in order to stimulate local soya bean production.

The government withdrew the tax temporarily on Aug 1, and has said it will help tempeh and tofu manufacturers import soya beans directly, rather than through third parties, a factor many in the industry believe has contributed to the high prices.

The basic problem, however, is likely to remain unresolved for some time. Indonesia consumes about 2.2 million tonnes of soya beans per year, but is only able to produce about 700,000 tonnes in the same period.
Last month, Agriculture Minister Suswono acknowledged the difficulty, noting that Indonesia had only 600,000 ha of soya bean farms, well below the 1.5 million ha needed to achieve self-sufficiency.

Consumption is generally higher in urban than in rural areas, a point which raises the possibility that high prices could have a major political impact if the situation is not handled properly. Last month, the Jakarta Post ran an editorial urging the government to do more to head off tensions.

One reason for declining production is the reduced area set aside for cultivation in Java as urbanisation spreads, a factor that has also affected other agricultural produce, including rice. Yet another factor is the tendency of farmers to switch from soya bean to corn, which many regard as more profitable.

Reversing the trend may not be easy. Indonesia has not been self- sufficient in soya bean since the 1970s.
Even so, inefficiency and low productivity are two areas that could benefit from more official attention. Imported soya beans cost less than the local crop, which sells for about 9,000 rupiah per kg.

Reacting to the strike by Kopti, Indonesian Chamber of Commerce and Industry’s vice-chairman, Mr Bambang Soesatyo, argued last month that the real problem was official neglect. “Even before tempeh and tofu producers began the strike, it seemed like the government could not do anything to face the soaring price of imported soya beans,” he said.

Indeed, the focus of government efforts seems almost perverse. Instead of looking for ways to increase domestic output, officials have been busying themselves promoting exports.

In May, the Industry Ministry’s agro-industry director-general Benny Wahyudi told the local media his ministry was finalising standards for tempeh production to promote the locally-made traditional food overseas. “This is our chance to promote and introduce such products which have been passed down by our ancestors. We aim to make it a cultural heritage acknowledged by Unesco,” he told reporters after opening a food and beverage exhibition at his office.

Fortunately for Indonesian consumers, there are short-term substitutes for soya bean. Eggs, for example, remain relatively cheap and have a higher protein content. A similar point could be made about chicken and milk.

Over the long term, however, government policies need a better focus. National pride does not fill stomachs. Nor does it solve Indonesia’s growing problem of food security.

(C) Singapore Press Holdings Limited