PALMOILMAGAZINE, JAKARTA – The Central Bureau of Statistics (CBS/BPS) reported a 0.20% increase in the Farmers’ Exchange Rate (FER) for August 2024 compared to the previous month. The FER, which measures farmers’ purchasing power in various villages, reached 119.85.
This increase indicates improved welfare for farmers, reflecting better exchangeability of their agricultural products for goods and services used in production.
CBS attributed the rise in FER to an increase in the price index received by farmers, while the price index paid by farmers decreased by 0.12%. This suggests that farmers’ income from selling their products has increased, while their production and consumption expenses have decreased, enhancing their purchasing power.
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At the provincial level, Gorontalo saw the highest FER increase, while North Sulawesi experienced the largest decrease at 2.25%.
Additionally, CBS reported a 0.22% decrease in the housing consumption index for August 2024, due to reduced spending on food, drink, and tobacco.
Agriculture housing business exchange in August 2024 reached 122,20 or got decreased 0,04 percent to the previous month nationally. This showed the balance between agricultural business income and the spent for production, reflected a little bit decreasing in agricultural business efficiency in the period.
In a whole, even though there were some indicators that showed the decreasing one, the increasing FER showed that the farmers in Indonesia still got increased their purchasing capability when the economy was still in fluctuation and in the market dynamic. (P2)
