SWITCH-Asia

The Challenge

Indonesia’s tofu and tempeh industry, with its vast number of micro, small, and medium enterprises (MSMEs), still uses environmentally damaging production practices. The problems in the processed soy-based food industry are inefficiency, inadequate waste disposal, lack of hygiene, insufficient access to credit, and the low awareness of new technologies. Without business development services, support, or regulations, these enterprises suffer from avoidable inefficiencies that not only reduce profitability and productivity, but also lead to environmental damage.

The Objectives

The project aimed at reducing energy consumption and increase sustainable growth in urban food processing industries in Indonesia by promoting sustainable production and consumption of tofu and tempeh.

The Way Forward

• Set up of 6 demonstration factories equipped with technology, which meets the national food standard regulation for hygiene and consumer safety;
• 590 producers had purchased new equipment used by 771 producers, with 181 producers renting equipment;
• Assisted 150 producers to obtain loans from financial institutions to acquire new equipment;
• Developed training materials for SMEs, including financial literacy, cost benefit analyses, a hygiene manual and a manual on eco-friendly tempeh production;
• Facilitated tofu and tempeh producers to gain the “P-IRT” (household food industry) certificate from the Ministry of Health local offices;
• Strengthened the market for hygienic and eco-friendly tofu and tempeh. The model factory of Rumah Tempe Indonesia (RTI), facilitated by the project, works with an intermediary and distributes fresh tempeh to 78 modern market stores in the Greater Jakarta and Bandung area.