Bekasi, W Java, April 7 -- Indonesian tofu and tempeh producers in Bekasi, West Java, are struggling to stay afloat as global price shocks push up costs of key inputs, squeezing margins for staple food producers.

Higher prices for imported soybeans and plastic packaging have forced small-scale producers to shrink product sizes and cut labor, highlighting how global instability is affecting everyday foods.

Deden, a tofu maker in Cikarang Barat, said he has reduced product sizes and temporarily laid off nearly half of his workers to keep operations running.

"I want to sustain the business I've built for years. This is the only way to keep production going," he said on Tuesday.

Tempeh producer Sukhep from Serang Baru said soybean prices ...