How are Indonesian Farmers' Welfare Indicators?

Indonesia is an agrarian country where the majority of its population depends on the agricultural sector. However, the plight of farmers in the country has not significantly improved over the years. This is reflected in the farmers' welfare indicator, namely the Farmer Exchange Rate Index (NTP), which tends to remain stagnant, as shown in the graph below.

Data from the Central Bureau of Statistics recorded the NTP at 102.56 in August 2018, a decrease of 0.49% from its position at the end of 2017. This indicates that the purchasing power (welfare) of farmers throughout the year decreased by 0.49%. Meanwhile, the average real wage for agricultural laborers in August 2018 was Rp 37,863/day, an increase of 0.95% from the end of 2017. Low wages for farm laborers, limited land ownership, and unfavorable selling prices for agricultural products have prevented the farmers' welfare indicator from improving significantly.

Although food (agricultural) prices often increase, such as during the period leading up to Ramadan and Eid al-Fitr, this does not significantly benefit farmers. The major beneficiaries are speculators, not the farmers themselves.