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‘Kerupuk’ to cost more as inflation continues to bite
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Jakarta producers of traditional kerupuk (crackers) plan to raise prices on May 6 in response to higher ingredient costs.
The Jakarta Kerupuk Producers Association declared on Friday that its members would double the price of the popular kerupuk kaleng (canned crackers) to Rp 2,000 (14 US cents) apiece after the Idul Fitri holidays.
Association spokesman Kemal Mahmud said producers were primarily adjusting to rising prices of cooking oil and tapioca flour – the core ingredients of kerupuk – that had doubled from normal levels. Producers were also paying more for flavoring, garlic, salt and terasi (shrimp paste).
“If we do not raise prices, then how [can we keep going]?” he said during an event to announce the move at Jakarta’s Minggu Market as reported by kompas.com.
Jakarta, like many cities across Indonesia, has seen price hikes in a raft of staple foods this year, including tofu, beef and tempeh, due to various external factors, including sanctions imposed over the Russia-Ukraine war, higher freight costs, rising global demand and climate change.
Read also: Surging import costs hit food industry
Cooking oil prices at traditional markets have gained 74 percent year-on-year to Rp 26,800 per kilogram, according to Information Center for Strategic Food Prices (PIHPS) data. The price of the product has risen alongside rising crude palm oil (CPO) prices.
Export prices for tapioca flour from Thailand, where Indonesia sources most of the ingredient, have gained 3.1 percent yoy to $500 per ton as of April 12, according to Thai Tapioca Starch Association data.
“We know these are difficult times, but it also needs to be understood that we cannot earn a living if we do not raise prices,” said Kemal.
Food prices are a seasonal driver of inflation nearing the Idul Fitri holidays, but a global surge in commodity prices has exacerbated the situation.
Read also: Indonesia braces for high inflation
Annual inflation climbed to a nearly two-year high of 2.64 percent in March after the government lifted a price cap on cooking oil, according to Statistics Indonesia (BPS).
Economists expect domestic inflation to accelerate in the coming months as Indonesia raises value-added taxes, removes more price controls and sees higher demand with the Idul Fitri holidays and eased COVID-19 mobility curbs.
