Exchange Rate Rises, Farmers' Welfare Improves Throughout 2018-2024

Indonesian farmers' welfare generally improved between 2018 and 2024, as indicated by the strengthening Farmer Exchange Rate Index (NTP) during that period.

The NTP is an indicator used to measure farmers' purchasing power and welfare level.

Statistics Indonesia (BPS) calculates the NTP by comparing the exchange value of agricultural products (the price index received by farmers) with the production costs and goods/services they consume (the price index paid by farmers).

An NTP score above 100 reflects a surplus/profit for farmers, where the selling price of their products exceeds their production and consumption expenses. An NTP of 100 indicates a break-even point for farmers, while an NTP below 100 reflects a deficit/loss.

BPS recorded that in 2024, the combined NTP across all Indonesian agricultural sectors reached 119.62, a 6.36% increase compared to 2023.

Compared to the base year of the index calculation (2018=100), the combined NTP in 2024 strengthened by 19.62%.

By sector, the plantation crop NTP index experienced the highest year-on-year increase in 2024, while the fishermen and fish farmers' NTP decreased.

Here's a breakdown of the percentage increase/decrease in the NTP index per sector for the 2023-2024 period:

* Plantation Crops NTP: increased by 16.05%
* Combined NTP: increased by 6.36%
* Horticulture NTP: increased by 5.32%
* Food Crops NTP: increased by 2.79%
* Livestock NTP: increased by 0.66%
* Fish Farming NTP: decreased by 2.71%
* Fishermen and Fish Farmers NTP: decreased by 3.17%

Over the 2018-2024 period, the plantation crops NTP index showed the highest increase, while the fishermen and fish farmers' NTP index showed the smallest increase.

Here's a breakdown of the percentage increase/decrease in the NTP index per sector for the 2018-2024 period:

* Plantation Crops NTP: increased by 49.1%
* Combined NTP: increased by 19.62%
* Horticulture NTP: increased by 17.71%
* Food Crops NTP: increased by 10.66%
* Livestock NTP: increased by 2.48%
* Fish Farming NTP: increased by 2.07%
* Fishermen & Fish Farmers NTP: increased by 1.88%