The emerging roles of agricultural insurance and farmers cooperatives on sustainable rice productions in Indonesia

Abstract

Rice is the main staple food of most Asian countries including Indonesia. Most of the rice producers are constituted by small individual farmers characterized with mostly landless, have a less farming capitals and less access to pool resources and of course are confronted with various risk. Agriculture is faced with a lot of uncertainly most of which are not within the control of farmers. Global climatic change, climatic disasters, fluctuation of global economic and competitiveness of multinational company make difficulties of farmers to pursue his sustainable farming activity. The challenge and the role of government is to reduce uncertainly and to improve resiliency of the small farmer. Agriculture insurance shall focus on risk factors that are difficult to manage or cannot be managed by small farmers and it is should be viewed as just one aspect of the "holistic" risk management strategy. Technology, market, consumer, behaviour, development will always move forward, and no individual farmers can adapt this change alone, so small farmers need to corporate with each other that can optimized the resources they have. Cooperative could create possibilities, value added, shortening the supplied chain, made a product more effective and efficient, and finally can complete in domestic and global markets. Therefore, agriculture insurance as well a farmer cooperative may play an important role on sustainability of rice production in Indonesia. Nowadays and in the future agriculture sustainability is a not merely of technology problems but also a matter of economic-social-culture and politic issues within local, national, and international context.

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