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Indonesian Economy First Quarter 2010
When Higher Prices Bring No Benefits

Wednesday, September 8, 2010

Higher rice prices did not mean higher income for Indonesian farmers as their buying power remained low.

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UDIN, a rice farmer in the West Java district of Subang, suffered a big loss this harvest season. His farm produced only a quarter of the amount of rice he used to produce before. Its price dropped to a half and wereng (rice plant hoppers) destroyed much of the crop. The 65-year-old was resting in a bamboo shelter when Tempo visited him at Desa Balebandung on Thursday two weeks ago. “This season’s harvest was a real disaster,” he said.

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