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Inevitable Price Hike

Monday, 1 August 2022

Industry players are facing the increasing price of raw materials such as wheat and soybeans. The high prices of imported raw materials, that have caused global inflation, cornering producers.

Bread making at Sari Roti factory in Jababeka area, Cikarang, West Java, July 2011. TEMPO/Dasril Roszandi/File Photo . tempo : 166454061282

WHEN the price of raw materials rises, there are only three options for entrepreneurs: cutting down on non-raw material costs, increasing product prices, or combining the two options. Most national food producers opt for the third amid pressures from global inflation.

Nippon Indosari Corpindo, producer of Sari Roti, also chose the third option. Sari Roti seeks to manage production costs while slightly increasing the selling price of its breads.

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