Lebaran-Lebaran Farmer's Exchange Rate Drops 0.24 Percent, What's Wrong?

JAKARTA - The Central Statistics Agency (BPS) confirmed that the Farmer's Exchange Rate (NTP) decreased by 0.24 percent to 110.58 in April 2023.

Head of BPS Margo Yuwono said that the level was lower when compared to March 2023 which was 110.85.

The decline in NTP occurred because the price index received by the farmers fell by 0.12 percent. Meanwhile, the price index that must be paid by farmers has increased by 0.13 percent," he told reporters in Jakarta on Tuesday, May 2.

According to Margo, there are five main commodities contributing to the drop in the price index received by farmers, namely the decline in the price of palm oil, cayenne pepper, red chilies, and shallots.

"Meanwhile, when viewed from the sub-sector, the NTP increase is the highest in the fisheries sector, especially fishermen. Fisheries NTP has increased by 0.79 percent because of the price of tuna / skipjack, squid, and marine crabs," he said.

For information, NTP is an important indicator in assessing the welfare level of farmers. If the NTP level is higher than 100, then there is a surplus and the welfare level of good farmers. Vice versa.

To note, the government in the 2023 State Budget Law has set the NTP target of 105-107. Meanwhile, for NPT in the discussion of the 2023 RAPBN, it is 105-108.