Welfare of Indonesian Smallholder Plantation Farmers Reaches Highest Point in the Last Year

National farmer welfare levels have shown an increase over the past year. People farming in the plantation sector recorded the highest increase in welfare, driven by rising Crude Palm Oil (CPO) prices.

This is evident in the Farmer Exchange Rate (NTPR) for people farming in the plantation sector, which rose by 17.4% to 131.81 in January 2022 compared to January 2021.

Next, the Farmer Exchange Rate for fisheries (NTNP) increased by 3.59% to 105.91 in January 2022 compared to the same month last year. The Farmer Exchange Rate for livestock (NTPT) rose by 2.23% to 100.19 in January 2022 compared to the same month last year.

The Farmer Exchange Rate for food crops (NTPP) increased by 0.8% to 100.86 in January 2022 compared to the same month last year. Meanwhile, the Farmer Exchange Rate for horticultural crops (NTPH) fell by 3.52% to 99.67 in January 2022 from its January position the previous year.

The NTPR, NTNP, NTPT, and NTPP indices are above 100. This indicates that the purchasing power of farmers in these sub-sectors has increased since the beginning of the index calculation (2018=100). Meanwhile, the NTPH index is below 100, indicating that the purchasing power of farmers in the horticultural crop sub-sector has decreased since the beginning of the index calculation.