Thanks To The Price Of Harvested Dry Grain To IDR 6,500 Per Kg, Indonesian Farmers Now Live More Prosperous

JAKARTA Economist from the Center of Reform on Economics (Core) Indonesia Eliza Mardian assessed that the food farmer's exchange rate (NTP) increased after the government adjusted the price of harvested dry unhulled rice (GKP) to Rp6,500 per kilogram (kg).

JAKARTA Economist from the Center of Reform on Economics (Core) Indonesia Eliza Mardian assessed that the food farmer's exchange rate (NTP) increased after the government adjusted the price of harvested dry unhulled rice (GKP) to Rp6,500 per kilogram (kg).

JAKARTA Economist from the Center of Reform on Economics (Core) Indonesia Eliza Mardian assessed that the food farmer's exchange rate (NTP) increased after the government adjusted the price of harvested dry unhulled rice (GKP) to Rp6,500 per kilogram (kg).

JAKARTA Economist from the Center of Reform on Economics (Core) Indonesia Eliza Mardian assessed that the food farmer's exchange rate (NTP) increased after the government adjusted the price of harvested dry unhulled rice (GKP) to Rp6,500 per kilogram (kg).

According to him, the policy has had a positive impact on the welfare of farmers who for the last two decades have lived in marginal conditions.

"The food NTP has increased because there is a policy of adjusting the price of harvested dry unhulled unhulled rice to Rp6,500. For two decades food farmers have been living marginally, now that the NTP has increased, it is one of the welfare proxies," he told VOI, Tuesday, September 2.

But on the other hand, continued Eliza, adjusting the price of unhulled rice at the farmer level also had an impact on rising rice prices in consumers.

This is inevitable because the price of raw materials has risen.

"There is an adjustment in the price of grain, which encourages the adjustment of rice prices in consumers because the raw materials have increased in price. So that the players in each chain have a margin, meaning that downstream there is also an increase," he explained.

Furthermore, he emphasized the importance of a sustainable and fair self-sufficiency strategy. According to him, sustainability must include aspects of the economy, social, and the environment so that increased production does not damage forests or displacies indigenous peoples.

In addition, Eliza encourages each region to be able to strengthen local food self-sufficiency.

This step is considered to reduce dependence on rice as the main commodity.

"In addition, it is also necessary for each region to be self-sufficient in local food, this will reduce dependence on rice. We must start a strategy to accelerate food diversification to local food so that we do not depend on just one commodity," he said.

The Farmer's Exchange Rate (NTP) in August 2025 was recorded at 123.57, up 0.76 percent compared to July 2025 which was at 122.64.

Deputy for Distribution and Services Statistics, Pudji Ismartini, explained that the NTP increase was driven by an increase in the Price Index received by Farmers (It) by 0.84 percent, higher than the increase in the Farmers' Paid Price Index (Ib) which was only 0.08 percent.

Menurutnya, peningkatan ini tidak hanya menjadi sinyal positif bagi kesejahteraan petani melalui peningkatan daya beli, tetapi juga memperkuat optimisme terhadap stabilitas pangan nasional.

"NTP menunjukkan daya tukar dari produk pertanian dengan barang dan jasa yang dikonsumsi maupun untuk biaya produksi," ujar Pudji.

According to him, this increase is not only a positive signal for the welfare of farmers through increasing purchasing power, but also strengthening optimism for national food stability.

"NTP shows the exchange power of agricultural products with goods and services consumed as well as for production costs," said Pudji.