West Sulawesi Farmers' Exchange Rate Development January 2024: In-depth Analysis

Mamuju - Head of BPS West Sulawesi, Tina Wahyufitri, presented the latest monitoring results regarding the Farmer Exchange Rate (NTP) in the region in a press release at the West Sulawesi Province BPS Hall (01/02). In January 2024, West Sulawesi's NTP reached 129.49, a decrease of 0.09 percent compared to December 2023 which was 129.60.

According to Tina, NTP is a parameter that reflects the exchangeability of agricultural products for consumer goods and services as well as production costs. "The higher the NTP, relatively speaking, the stronger the level of ability or purchasing power of farmers," he explained.

Regarding the change in the base year in calculating the Price Index Received by Farmers (It) and the Price Index Paid by Farmers (Ib) from the base year 2012=100 to the base year 2018=100, Tina said that this change was made to adjust to changes in production patterns and production costs. , and consumption of agricultural households in rural areas.

The report submitted shows that West Sulawesi's NTP in January 2024 decreased by 0.09 percent, due to the increase in It being slower than the increase in Ib. It rose 0.63 percent, while Ib rose 0.72 percent.

In an in-depth analysis, Tina explained the NTP by subsector. The highest NTP occurred in the Community Plantation Crops Subsector (NTP-R) at 155.88, while the Livestock Subsector (NTP-T) recorded the lowest value at 92.98.

The increase in IT in the Food Crops Subsector (NTP-P) was 2.11 percent due to an increase in prices for the commodities of soybeans, corn, cassava, peanuts and green beans. On the other hand, the Horticulture Subsector (NTP-H) experienced a decline of 3.37 percent because the prices of vegetables, fruit and medicinal plants decreased.

The Community Plantation Plantation Subsector (NTP-R) experienced a decrease of 0.50 percent, influenced by the increase in It which was slower than the increase in Ib. In the Livestock Subsector (NTP-T), although It rose 0.85 percent, the decline in NTP occurred due to a higher increase in Ib (0.89 percent).

Meanwhile, the Fisheries Subsector (NTN-P) experienced an increase of 0.18 percent, with the Price Index Received by Farmers (It) increasing 0.59 percent and the Price Index Paid by Farmers (Ib) increasing 0.41 percent.

Tina also discussed the Agricultural Household Business Exchange Rate (NTUP), which showed an increase of 0.73 percent. This was caused by the increase in IT and the decrease in the Price Index for Production Costs and Additional Capital Goods (BPPBM).

In the context of the Household Consumption Index (IKRT), there was an increase of 0.92 percent in January 2024. Several groups that contributed significantly to this increase include the food, beverage and tobacco groups.

Meanwhile, when compared with other provinces in Indonesia, West Sulawesi is in 24th place nationally with a change in NTP of -0.09 percent. On Sulawesi Island, three provinces experienced positive changes in NTP, while three other provinces experienced negative changes. North Sulawesi recorded the largest positive change, while North Kalimantan experienced a significant decline.

It is hoped that this comprehensive analysis will provide a clearer picture of the dynamics of the agricultural economy in West Sulawesi, serve as a guide for policy, and help business actors in the agricultural sector to make more informed decisions.