Rice crop insurance scheme to protect farmers from natural disaster risks: Field application experience

¹ Research Center for Social Welfare, Village, and Connectivity, National Research and Innovation Agency, Jakarta, Indonesia
² Research Center for Cooperative, Corporation, and People’s Economy, National Research and Innovation Agency, Jakarta, Indonesia
³ Research Centre for Economics of Industry, Services, and Trade, National Research and Innovation Agency, Jakarta, Indonesia

^* Corresponding author: iwansetiajie@yahoo.com

Abstract

Climate change has caused severe agricultural risks, especially rice as the staple food of Indonesians. Production system disruptions result in crop failure due to various natural disasters, such as floods, droughts, and intensified pest and disease attacks, which not only cause a decrease in production, productivity, and grain quality but also affect the national food security program. The Ministry of Agriculture launched a rice crop insurance (AUTP) scheme in 2015 to protect farmers from natural disasters. This study aimed to describe the implementation performance of the AUTP scheme. The method used was a descriptive analysis based on previous research results and in-depth literature reviews. As stipulated in Law No. 19 of 2013 on farmer protection and empowerment, stakeholders have widely accepted the scheme with enthusiasm. This also indicates that this instrument effectively supports farmers from risks. The dynamics of its implementation revealed the need to prepare the insurance program for other schemes and expand similar mechanisms to different strategic crops. The application of technology, such as electronic registration and payments and specific tools is highly encouraged. The government’s role and insurance companies’ involvement in the implementation should improve the performance of rice crops.