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The East Java Farmers' Exchange Rate (NTP) for July 2023 fell 0.32 percent

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Release Date	:	August 1, 2023
File Size	:	2.89 MB

Abstract

Farmers Terms of Trade (NTP) is a comparison of the price index received by farmers (It) to the price index paid by farmers (Ib).

NTP is one indicator to see the level of ability/purchasing power of farmers in rural areas. NTP also shows the exchange power (terms of trade) of agricultural products with goods and services consumed as well as for production costs.

The East Java Farmers' Exchange Rate (NTP) for July 2023 fell 0.32 percent from 107.78 to 107.43. The decline in FTT was caused by the price index received by farmers (It) which fell by 0.29 percent, while the price index paid by farmers (Ib) increased by 0.03 percent.

In July 2023, only one agricultural sub-sector experienced a decrease in NTP while the other sub-sectors experienced an increase in NTP. The sub-sector that experienced a decrease in NTP was the Horticulture sub-sector by 7.21 percent from 120.60 to 111.90. While the sub-sector that experienced the highest increase in NTP was the Livestock sub-sector by 0.83 percent from 104.97 to 105.85, followed by the Food Crops sub-sector by 0.61 percent from 107.83 to 108.48, the Fisheries sub-sector by 0.42 percent from 99.05 to 99.47, and the People's Plantation Crops sub-sector by 0.29 percent from 100.93 to 101.22.

Of the five provinces on Java Island that carried out NTP calculations in July 2023, four provinces experienced a decrease in NTP while one province experienced an increase in NTP. The highest decrease in NTP was in Central Java Province by 0.58 percent, followed by the Special Region of Yogyakarta by 0.42 percent, East Java by 0.32 percent and West Java Province by 0.05 percent. While the province that experienced an increase was only Banten Province by 0.49 percent.

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