Indonesia Ministry of Agriculture launches rice insurance for El Nino

Indonesia’s Ministry of Agriculture is implementing the Rice Farming Business Insurance (AUTP) program to protect 100,000 hectares of farmland against the risks posed by El Nino. The initiative aims to mitigate the impact of potential crop failures caused by drought, flooding, and pest attacks, such as rats, planthoppers, and blast disease.

To support farmers, the government is providing an 80 percent subsidy on insurance premiums. While the total premium is set at Rp180,000 per hectare per planting season, farmers are only required to pay Rp36,000. In the event of crop damage reaching a minimum intensity of 75 percent, farmers can claim up to Rp6 million per hectare. This financial safety net is intended to provide the necessary capital for farmers to resume production following a failed harvest.