Indonesia's Rice Production Hits 24.36 Million Tons, Farmers Benefit from Increased Exchange Rate

Indonesian farmers are experiencing improved welfare, with the national farmer's exchange rate (NTP) rising 1.99% to 127.73 in May 2026. This increase is attributed to the price farmers receive rising faster than the prices they pay. The improvement coincides with national rice production reaching 24.36 million tons of dry milled grain between January and April 2026, a 0.12% increase compared to the same period last year.

Despite a monthly dip in production in April 2026, the cumulative figures for the first four months show growth. The harvested area for rice from January to April 2026 was 4.51 million hectares, up 0.43% from the previous year. However, April 2026 saw a significant 15.47% decrease in harvested area, leading to a 16.03% drop in rice production for that month.

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production of rice rose 0.12 percent to 24.36 million tons of GKG and rice production rose 0.12 percent to 14.03 million tons during January-April 2026.

Looking ahead, the potential rice harvest area for May-July 2026 is projected to decrease by 0.65% compared to the same period last year, with an estimated production drop of 1.14%. Corn production, however, continues to show slight growth, with dry shelled corn production up 0.01% in the January-April 2026 period.

The National Farmers' Business Exchange Rate (NTUP) also rose by 1.95% in May 2026. Meanwhile, rice prices at the milling level have seen an increase, with premium rice at Rp14,667 per kilogram and medium rice at Rp13,402 per kilogram, both showing month-on-month increases.

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In May 2026, there was an increase in the Consumer Price Index for Households (IKRT) in Indonesia of 0.48 percent.