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