Food self-sufficiency that brings prosperity to farmers

Jakarta (ANTARA) - The welfare of Indonesian farmers is showing a positive trend as the Farmers’ Exchange Rate (NTP) reached 132.60 in October 2026, up 1.13 percent from September 2026.

As reported by Statistics Indonesia (BPS), this achievement marks the highest record in history.

The rise in NTP becomes a signal of improved purchasing power among farmers, as the prices they receive for agricultural products have increased faster than their household consumption spending and production costs.

This achievement also underscores the importance of realizing food self-sufficiency that benefits farmers.

National food independence should not be achieved at the expense of, or by putting pressure on, the welfare of the people who are the primary producers of food.

Food self-sufficiency and farmer welfare are two major goals that must advance together. Food self-sufficiency reflects a nation’s ability to meet its people’s food needs through domestic production without relying on imports.

Farmer welfare, meanwhile, is an expression of social justice, ensuring that food production yields fair profits, improves living standards, and protects farmers’ economic rights.

Accordingly, the success of food self-sufficiency cannot be measured solely by the volume of production or the ability to meet national consumption needs, but also by the economic benefits received by farmers.

Farmer Welfare

One important principle in achieving these goals is ensuring affordable food prices without suppressing the price of rough rice at the farm level.

Efforts to provide cheap food for consumers, particularly in urban areas, have often run up against the problem of low selling prices for agricultural products.

A balance is therefore needed, one that benefits consumers while guaranteeing proportionate profits for farmers.

Within this framework, farmers must be positioned as the main subjects of agricultural development, not merely as instruments of production to meet national food tonnage targets.

Farmers are a pillar of food security, and their dignity and economic condition deserve attention in every agricultural development policy.

Farmer welfare is also closely tied to the sustainability of the agricultural sector, particularly in addressing the challenge of farmer regeneration.

When farming provides a decent income and better life prospects, the profession becomes more attractive to younger generations. This is an important asset for the sustainability of national food production.

For this reason, government presence is needed through policies that provide post-harvest price certainty, easier access to fertilizer, the use of modern agricultural technology, and the protection of farmland.

These interventions are expected to prevent farmers from falling into structural poverty while strengthening their ability to run productive and sustainable farming businesses.

The increase in the national NTP is an important indicator of the economic well-being of farmers amid efforts to achieve food self-sufficiency.

BPS data show that the national NTP reached 132.60 in October 2026. This is a record high and indicates a positive development in farmers’ purchasing power.

The NTP is an indicator that compares the index of prices received by farmers with the index of prices they pay for production inputs and household consumption.

An NTP above 100 indicates that the index of prices received by farmers is higher than the index of prices paid.

In the context of food self-sufficiency under President Prabowo Subianto’s administration, the rise in NTP offers a picture of farmers’ economic conditions that needs to be sustained.

The Rise in NTP

At least four important aspects can be observed from the rise in NTP.

First, the increase in NTP beyond 130 shows a strengthening of farmers’ economic position in aggregate.

The achievement of 132.60 reflects a positive shift in the comparison between the prices farmers receive for their produce and the prices of goods and services they must pay for.

Second, the increase in NTP is related to efforts to improve farm income through lower production costs and stable selling prices for agricultural products.

Government interventions, including a reduction of up to 20 percent in the maximum retail price of subsidized fertilizer and simplified bureaucracy in fertilizer distribution, are expected to ease farmers’ production cost burden.

On the other hand, the Government Purchase Price (HPP) for rough rice and pricing policies for strategic food commodities play an important role in maintaining farm-gate prices, especially during the main harvest season.

This price certainty is needed so that higher production does not lead to a collapse in the prices farmers receive.

Third, the rise in NTP opens opportunities to strengthen the purchasing power and financial resilience of farming families.

When farm income increases and production costs can be controlled, farmers have more economic room to meet family needs while improving the productivity of their businesses.

Better income allows farmers to reduce their dependence on planting-capital loans, meet basic needs, and invest in modern farming equipment and technology.

This stronger economic capacity also gives farming families the chance to finance their children’s education to higher levels and improve their household quality of life.

As a result, the benefits of improved farmer welfare are felt not only in production activities but also in human resource development in rural areas.

Fourth, the increase in the national NTP must be accompanied by attention to welfare disparities among agricultural sub-sectors and the condition of smallholder farmers.

Although the aggregate NTP shows an increase, farmers’ economic conditions on the ground are not always uniform.

Food crop and horticulture farmers have a chance to benefit from price protection policies and optimized absorption of their production results. Even so, developments in each sub-sector still need to be monitored so that the benefits of policy are felt evenly.

Special attention is also needed for smallholder farmers, or those who cultivate small plots of land. Limited landholdings can affect production scale, business efficiency, and the ability to raise income.

Therefore, the rise in the national NTP must be accompanied by policies that reach small-landholding farmers, so that agricultural economic growth does not remain merely a macro-level statistical achievement.

The success of agricultural development must ultimately be reflected in the improved welfare of all groups of farmers, including those with limited access to land, capital, production inputs, and technology.

Sustainable food self-sufficiency requires a balance among increased production, affordable prices for consumers, and fair profits for farmers.

The rise in NTP is a positive development that must be maintained through consistent agricultural policy, price protection, production efficiency, and a more even distribution of economic benefits.

With this approach, food self-sufficiency becomes not only a measure of success in meeting national food needs but also a path to improving farmers’ welfare.

In essence, true food independence is one that guarantees the people’s needs while placing farmers as the parties who gain real benefits from the success of agricultural development in the country.

*) Entang Sastraatmadja is a member of the Expert Council of the National Executive Board (DPN) of the Indonesian Farmers’ Harvest Association (HKTI).

Disclaimer: The views and opinions expressed here are those of the author and do not necessarily reflect the official policy or position of the ANTARA News Agency.

Related news: Farmers Exchange Rate up 1.97% in August: BPS

Related news: Farmers exchange rate up 0.30 percent in January 2022: BPS