Riau Farmers Enjoy Highest National Welfare in 2021, Boosted by Palm Oil Prices

In 2021, Riau province had the highest farmer welfare level nationally. This is reflected in the Farmer Exchange Rate (NTP) of Riau, which was the highest compared to farmers in the other 33 provinces.

Based on data from the Central Statistics Agency (BPS), Riau's NTP was at 138.72 in 2021. This figure increased by 19.93 percentage points compared to the previous year's position of 118.79. Compared to the beginning of the index calculation (2018=100), the welfare level of Riau farmers has even increased by 38.72%.

The improvement in the welfare of Riau farmers was triggered by the increase in the price of palm oil (Crude palm Oil/CPO) along with the increasing demand for this Indonesian flagship commodity. For information, the price of palm oil in the Medan spot market increased by 38.97% to Rp 20,051.52 per kg.

The People's Plantation Farmer Exchange Rate (NTPR) in Riau at the end of 2021 was at 164.16, up 2.84% from the previous month's 159.62.

The next province with the highest farmer welfare level was Bengkulu with an NTP of 132.6. Followed by West Kalimantan with an NTP of 128.68, then Jambi with an NTP of 126.89 and Bangka Belitung Islands with an NTP of 125.71.

There is also West Sulawesi with an NTP of 122.04. After that, there is East Kalimantan with an NTP of 120.94, then North Sumatra with an NTP of 119.06, and Central Kalimantan and South Sumatra with NTPs of 118.53 and 107.8 respectively. These 10 NTPs are higher than the national average of 104.64.