Indonesia reports record high Farmer Terms of Trade

Indonesia's national Farmer Terms of Trade (NTP) reached a record high of 129.19 in August 2026, a 1.05 percent increase from July 2026. Agriculture Minister Andi Amran Sulaiman stated that this increase reflects improved farmer welfare and is a key component of the national food self-sufficiency mandate. To support this, the government has implemented measures to reduce costs, including lowering subsidized fertilizer prices by approximately 20 percent. Urea prices dropped from Rp2,250 to Rp1,800 per kilogram, while NPK fertilizer decreased from Rp2,300 to Rp1,840 per kilogram.

In West Kalimantan, palm oil fresh fruit bunch (TBS) prices for the second period of September 2026 also showed positive trends. For trees aged 10–20 years, the highest price reached Rp3,696.64 per kilogram. The crude palm oil (CPO) price was set at Rp15,576.45 per kilogram, influencing the rates received by partnered farmers. Local agricultural associations noted these prices are relatively favorable for both partnership plantations and independent farmers.