Farmers Advised to Have Insurance to Face Extreme Weather

The Indonesia Financial Group (IFG) Progress research institution highlights the extreme weather currently affecting Indonesia, leading to a decrease in agricultural productivity resulting in failed harvests. IFG Progress SEVP Reza Y. Siregar stated that Indonesia is currently facing a food security issue, causing rice stocks to be insufficient. "At present, this hot weather condition is causing a decline in the productivity of our agricultural sector, and it is not generating the rice income that we need," Reza said during the IFG International Conference 2023 event in Jakarta on Wednesday, September 13, 2023. Reza mentioned that under normal conditions, the required rice stock is 1.2 million tons. However, when extreme weather conditions strike, the land becomes dry, resulting in failed harvests.

"If farmers plant and fail, can they overcome it? There is lost capital there. They may not necessarily have the money to replant. But if there is insurance, a significant portion of the initial cost can be insured," he explained. Furthermore, Reza stated that farmers need insurance to mitigate crop failure events. According to him, situations like this pose economic challenges, and insurance can help address food security issues. "So if a crop fails due to drought or disease, it can be insured. Insurance can help farmers start over because if not, they'll have to stop," he concluded. Previously, President Joko Widodo (Jokowi) assured that the government's rice stock was in a safe condition. It is estimated that the national rice stock will reach 2 million tons by the end of this year. Jokowi made this statement after inspecting the availability of government rice reserve warehouses (CBP) on Monday, September 11, 2023. The warehouses visited by the President were the Logistics Affairs Agency (Bulog) Dramaga Warehouse in Bogor Regency, West Java, and the Sunter Timur II Warehouse Complex in Kelapa Gading, Jakarta.

"I came to the Bulog warehouses here, later in Jakarta, maybe in other regions, to ensure that the stock is there," said Jokowi on Monday, September 11, 2023. Jokowi stated that the current rice stock in Bulog's warehouse is 1.6 million tons and will increase to 2 million tons. "There is already 1.6 million tons in the warehouse, 400,000 tons are on the way, so there will be 2 million tons in stock. Usually, our stock is only 1.2 million tons, which is normal. Now we have 2 million tons, so we don't need to worry," he explained. Although the rice stock in Bulog's warehouse is sufficient, Jokowi believes that the government still needs to import rice to ensure an adequate rice reserve. This is also to mitigate the rise in rice prices in the market due to the El Nino phenomenon occurring in almost all countries.

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