Analisis Asuransi Pertanian di Indonesia : Konsep, Tantangan dan Prospek (ANALYSIS OF AGRICULTURAL INSURANCE IN INDONESIA: CONCEPTS, CHALLENGES AND PROSPECTS

Agriculture is one of the important sectorfor Indonesia. However, the sector is vulnerable to various risks that may impact on the fluctuation of the income of farmers. Related to this, through Law No. 19 of 2013, the government seeks to protect farmers, one of which is through agricultural insurance. As a start-up country, the problem faced is how to develop agricultural insurance in Indonesia. Related to that, this study aims to (1) describe the concept of agricultural insurance, (2) describe the challenges faced to develop agricultural insurance, and (3) explain how the prospect. Some of the challenges can be grouped into four challenges, namely institutional, financial, technical and operationalchallenges. For the good prospect in the future, implementation of agricultural insurance is proposed to (1) gradually increase the allocation in state budget, (2) develop technical rules which include agricultural insurance scheme in compulsory basis, (3) encourage the relevant parties to commit in developing agricultural insurance (4) assign to the state-owned insurance as providers and distributors of agricultural insurance as well as a role as reinsurance agency, (5) assess the integration between the agricultural insurance scheme and agricultural services received by farmers (subsidized fertilizer, subsidized seed, and social assistance).