Farmers' Terms of Trade Dip in June 2026 Despite Rising Rice Prices, BPS Reports

The national farmers’ terms of trade (NTP) in June 2026 was recorded at 127.65, a slight drop of 0.06 percent compared to May 2026, according to Statistics Indonesia (BPS) Deputy for Distribution and Services Statistics, Ateng Hartono. Ateng explained that this was caused by a 0.49 percent increase in the index of prices received by farmers (It), which was lower than the 0.55 percent increase in the index of prices paid by farmers (Ib). BPS also recorded an increase in the average price of rice at every level during June 2026. At the mill level, there was a 0.97 percent increase month-to-month (m-to-m), while wholesale prices rose 0.82 percent and retail prices rose 0.45 percent. Previously, Ateng reported that monthly inflation reached 0.44 percent month-to-month (mtm) in June 2026. Calendar year inflation was recorded at 1.79 percent year-to-date (ytd), and annual inflation stood at 3.34 percent year-on-year (yoy). The consumer price index rose from 111.40 in May 2026 to 111.89 in June 2026. The largest contributor to monthly inflation was the transport expenditure group, which experienced inflation of 2.29 percent and contributed 0.28 percent to overall inflation. Within the transport group, rising prices for non-subsidised fuels such as Pertamax, air transport fares, and engine lubricants were the main drivers. Ateng noted that the increase in air transport fares occurred alongside a surge in public demand during the June 2026 school holiday period. He detailed that petrol contributed 0.21 percent to inflation, followed by air transport fares at 0.05 percent, and engine lubricants at 0.01 percent. The food, beverages, and tobacco group also experienced 0.20 percent inflation, contributing 0.06 percent to general inflation in June 2026. Commodities in this group that contributed to inflation included shallots with a 0.04 percent share, garlic with a 0.03 percent share, and rice with a 0.02 percent share.