Farmer Inequality in Kalimantan and Java

The Farmer Exchange Rate Index (NTP) in Kalimantan Island has consistently been below 100 since March 2016, while in Java Island it has always been above 100. This indicates a disparity in farmers' purchasing power between the two islands.

An NTP index below 100 in Kalimantan signifies that farmers' selling prices are lower than the consumption prices of goods and services for agricultural production. This means farmers consistently experience a deficit in managing their land. Conversely, farmers in Java Island always have a surplus, where their agricultural selling prices are higher than the consumption prices of goods and services required for agricultural production. Furthermore, their farmer exchange rate is consistently above the national average.

Statistics Indonesia recorded the farmer exchange rate index in Kalimantan in October 2016 as 97.23. This means farmers experienced a deficit and a lower index than the previous month. Meanwhile, the farmer exchange rate index in Java in October 2016 reached 102.3, meaning farmers experienced a surplus, although lower than the previous month. The national average NTP index was 101.71.