National Farmer Purchasing Power Weakens in February 2025

National farmers' purchasing power weakened in February 2025. This is reflected in the decline of the Farmer Exchange Rate (NTP), an indicator of the purchasing power of rural farmers.

Statistics Indonesia (BPS) recorded a combined NTP of 123.45 in February 2025, down 0.18% month-to-month (mtm).

This decline is the first in the last nine months, as shown in the graph.

However, compared to February 2024, the combined NTP is still 2.05% higher year-on-year (yoy).

The NTP weakened in February 2025 because the index of agricultural output prices received by farmers (It) fell more sharply than the index of production and consumption costs paid by farmers (Ib).

The It index in February 2025 fell 0.5% (mtm) to 149.98. Meanwhile, the Ib index fell only 0.32% (mtm) to 121.49.

"The decline in the February 2025 NTP was influenced by the decrease in the NTP in two agricultural sub-sectors: horticulture by 6.84% and livestock by 0.51%," BPS wrote in its release on Monday (March 3, 2025).

Meanwhile, the NTP in three other sub-sectors increased: food crops by 0.47%; peasant plantation crops by 1.03%; and fisheries by 0.92%.