Indonesian Farmer's Exchange Rate Strengthens on Lower Production Costs

Indonesia's Farmer's Exchange Rate (NTP) experienced a modest uptick in July 2026, rising by 0.15% to 127.84 compared to the previous month, according to the Central Statistics Agency (BPS).

This slight improvement is attributed to a larger decrease in the costs farmers incurred for production than the decline in the prices they received for their agricultural products. BPS Deputy for Distribution and Services Statistics, Ateng Hartono, explained that the index of prices received by farmers (It) fell by 0.10%, while the index of prices paid by farmers (Ib) saw a more significant drop of 0.25%.

“

The Farmer's Exchange Rate or NTP in July 2026 was recorded at 127.84, an increase of 0.15 percent compared to June 2026.

The decline in prices received by farmers was primarily influenced by the weakening prices of several horticultural commodities, including bird's eye chili, shallots, tomatoes, and red chili. Consequently, the horticulture sub-sector recorded the steepest NTP decline at 8.49%.

“

The commodities that predominantly influenced the decrease in the index of prices received by farmers were bird's eye chili, shallots, tomatoes, and red chili.

In contrast, the fisheries sub-sector demonstrated a positive trend. The Fishermen's Exchange Rate (NTPi) increased by 1.01%, driven by a 0.95% rise in the exchange rate for fishermen and a 1.10% increase for fish cultivators. Notable commodities boosting prices for fishermen included blue swimming crab, skipjack tuna, bonito, and mackerel. For fish cultivators, price increases were linked to seaweed, milkfish, shrimp, and catfish.

Additionally, BPS reported that the average price of milled rice at the mill level in July 2026 increased by 0.94% monthly and 5.11% annually. Premium rice prices rose 0.44% monthly and 10.02% annually, while medium rice prices increased 1.25% monthly and 3.24% annually.

“

The average price of milled rice at the mill level in July 2026 increased by 0.94 percent on a monthly basis and increased by 5.11 percent on an annual basis.