Ministry of Agriculture to Expand Agricultural Insurance Coverage

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JAKARTA - The Ministry of Agriculture through the Directorate General of Agricultural Facilities and Infrastructure will expand the coverage of agricultural insurance which so far only covers rice farmers and cattle or buffalo breeders.

Director General of Agricultural Facilities and Infrastructure of the Ministry of Agriculture Ali Jamil in a written statement in Jakarta, Wednesday, October 12, said that currently, his party is discussing the possibility of insurance for commodities other than rice and cattle or buffalo.

"We will try to have insurance for shallots, red chilies, and commodities that have an impact on inflation. If possible, goats and sheep are also insured", said Ali, quoted from Antara.

Since the beginning of the year, several food commodities have experienced price increases and have been the cause of inflation. Different from previous years where food inflation was caused by rising rice prices, earlier this year the cause of inflation was driven by onions, chilies, eggs, and cooking oil.

In addition to expanding the coverage of food commodities that are covered by insurance, Ali said that his party is also trying to open up the possibility of agricultural insurance not only through Jasindo. "Is it possible or not, or what the mechanism is, please provide input", said Ali Jamil.

In addition to insurance, agriculture also requires adequate financial support to realize advanced, independent, and modern agriculture according to the direction of the Ministry of Agriculture. Ali said the financing would be supported through the People's Business Credit (KUR).

"For regional heads, please help to help this program so that the achievement of this project can be achieved properly", said Ali.

Ali thanked the Association of State-Owned Banks (Himbara) for providing KUR facilities to farmers. In addition, regional banks also support the distribution of agricultural KUR.

With access to capital through KUR, Ali continued, farmers should no longer have difficulty accessing financing.

"Because there is a KUR that can be used for on-farm and off-farm", he said.