The number of farmers and breeders participating in agricultural insurance schemes is increasing, as can be seen from the expanse of farming and livestock areas covered by insurance.
"Over the years more and more participants have participated in agricultural insurance," the director general of Agricultural Infrastructure and Facilities (PSP), Sarwo Edhy, said in a statement. He referred to participation in the Rice Farming Insurance Scheme (AUTP) launched by the government in 2015 and the Cattle/Buffalo Business Insurance Scheme (AUTS/K) in 2016. The programmes are offered with Asuransi Jasa Indonesia (Jasindo).
Under the AUTP, there were only around 233,500ha covered in 2015. This increased to 806,200ha in 2018.
"This year, we target 1m ha to be covered by the AUTP,” Mr Sarwo said.
Under the AUTS/K scheme, the number of registered livestock insured was 20,000 in 2016, increasing to 88,673 last year.
Mr Sarwo said, "Farmers and breeders increasingly understand the benefits and opportunities of this insurance. For the price of only for one packet of cigarettes, farmers and farmers can sleep easily.”
AUTP offers cover of IDR6m ($421)/ha until the harvest period (four months) with a premium of IDR180,000/ha. The government subsidises premium payments of IDR144,000 and farmers pay only IDR36,000.
AUTS/K covers livestock with a premium of IDR200,000 per head per year. Of this, IDR160,000 is subsidised by the government and the remaining IDR40,000 is paid by breeders. Under the scheme, the compensation payable is IDR10m per head for death of the cattle/buffalo and IDR7m, if the animal is lost.
To make it easier for farmers and breeders to subscribe for the insurance cover, the government has launched an online system called Agricultural Insurance Information System.