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Govt Activates Rice Farm Insurance for Flood-Affected Farmers

27 February 2026

RRI.CO.ID, Jakarta - The Indonesian government is strengthening protection for rice farmers affected by flooding in several parts of Central Java through the Rice Farming Insurance (AUTP) program. Claims have been filed for 1,573.46 hectares of damaged land in Demak, Kudus, Pati, and Grobogan, with a total valuation of IDR 9.44 billion (approximately USD 563,000).

The floods in these key rice production areas have caused potential crop losses and disrupted planting schedules. AUTP functions as a risk mitigation instrument to ensure farming activities can continue.

Agriculture Minister Andi Amran Sulaiman stressed that the state must not neglect the risks faced by farmers. “The state must not allow farmers to bear the losses alone due to flooding and the impacts of climate change. Through AUTP, the central government and regional administrations provide a safety net so that farmers still have the capital to replant and maintain production. This is a real commitment to maintaining national food sustainability,” he said, as quoted on the ministry’s official website on Thursday, February 26, 2026.

Director General of Agricultural Infrastructure and Facilities, Andi Nur Alam Syah, explained that the policy is an implementation of Law No. 19/2013 on the Protection and Empowerment of Farmers, which requires the government to shield farmers from losses caused by natural disasters, climate change, and pest outbreaks. “The government is present through the establishment of risk mitigation policies in the form of AUTP, so that farmers do not bear risks independently,” he said in Jakarta on Tuesday, February 24, 2026.

He added that the program’s implementation is a joint effort between the central government and regional administrations, covering policy determination, socialization, assistance, and premium support through the national and regional budgets.

Minister of Agriculture Regulation No. 36/2025 further stipulates that insurance premium subsidies can be sourced from both the state budget (APBN) and the regional budget (APBD).

As of 2026, 13 provinces have allocated local budget (APBD I) funds to support insurance premiums, marking progress in decentralized food security management. The structured protection scheme is expected to stabilize rice production amid rising climate risks.

The rapid processing of IDR 9.44 billion in claims for Central Java is aimed at enabling farmers to resume planting quickly and maintain food supply continuity. 

Source : rri

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