Indonesian Political, Business & Finance News

Rice Production Reaches 24 Million Tonnes, Farmers Benefit from Rising Terms of Trade

| | Source: REPUBLIKA Translated from Indonesian | Agriculture
Rice Production Reaches 24 Million Tonnes, Farmers Benefit from Rising Terms of Trade
Image: REPUBLIKA

National rice production reached 24.36 million tonnes of dry milled grain (GKG) throughout January-April 2026. Simultaneously, farmer welfare showed signs of improvement, reflected by the rise in the Farmer’s Terms of May 2026.

Pudji Ismartini, Deputy for Methodology and Statistical Information at the Indonesian Central Statistics Agency (BPS), stated that rice production from January to April 2026 increased by 0.12 per cent compared to the same period last year. This increase also pushed national rice production to 14.03 million tonnes.

“Meanwhile, rice production rose by 0.12 per cent to 24.36 million tonnes of GKG, and rice production rose by 0.12 per cent to 14.03 million tonnes during January-April 2026,” Pudji said during a press conference at the BPS office in Jakarta on Tuesday (2/6/2026).

Although monthly production experienced a decline in April 2026, the cumulative achievement for the first four months of this year still showed growth. BPS noted that the harvested area for rice from January to April 2026 reached 4.51 million hectares, an increase of 0.43 per cent compared to the same period the previous year.

In April 2026, the harvested area was recorded at 1.40 million hectares, a decrease of 15.47 per cent compared to April 2025. Alongside the decrease in harvested area, rice production in that month fell by 16.03 per cent to 7.63 million tonnes of GKG from 9.09 million tonnes of GKG in April last year.

BPS also estimates that the potential harvested area for rice in May-July 2026 could reach 2.69 million hectares, or a decrease of 0.65 per cent compared to the same period last year. The potential rice production for that period is estimated to reach 13.75 million tonnes of GKG, or a decrease of 1.14 per cent. “Meanwhile, rice production reached 7.92 million tonnes, or a decrease of 1.16 per cent,” said Pudji.

In addition to rice, corn production also continues to show growth. Production of dry shelled corn with 14 per cent moisture content (JPK KA 14 per cent) throughout January-April 2026 reached 6.02 million tonnes, a slight increase of 0.01 per cent compared to the same period last year.

Regarding farmer welfare, BPS recorded the national Farmer’s Terms of Trade (NTP) in May 2026 at 127.73, an increase of 1.99 per cent compared to April 2026. This increase occurred because the Price Index Received by Farmers (It) rose by 2.53 per cent, which was higher than the increase in the Price Index Paid by Farmers (Ib) of 0.53 per cent. “In May 2026, there was an increase in the Household Consumption Price Index (IKRT) in Indonesia of 0.48 per cent,” said Pudji.

BPS also noted that the national Agricultural Business Terms of Trade (NTUP) in May 2026 reached 132.84, an increase of 1.95 per cent compared to the previous month.

Meanwhile, rice prices at the milling level continued to rise. Premium rice prices were recorded at Rp14,667 per kilogram, an increase of 0.56 per cent compared to the previous month. Medium rice prices reached Rp13,402 per kilogram, an increase of 0.79 per cent.

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