The Role of Agricultural Microfinance Institution

By: Hasanawi Masturi   Asyrafinafilah Hasanawi  

The unpredictable climate situation directly influences agricultural development in Indonesia. Indonesia should be able to provide sufficient food for all of the people and access to food at affordable prices with changes that are at high risk. In this regard, the climate field school is important to improve farmer’s knowledge to anticipate such as climate change. While adapting to the climate change, agricultural activities should be protected and reduced the risk to the lowest possible level. Agricultural insurance is introduced to protect the farms, share the risk, and favor the farmers. Rice farm insurance, in particular, is applicable to share the risk of harvest failure caused by flood, drought and pest and disease infestations. Government support to provide the subsidy for premium payment is encouraged. Such subsidy would be reduced gradually and integrated into the farm cost of production. In the absence of agricultural bank in Indonesia, microfinance institution is required to provide sufficient fund to cover the cost of production. For a short-term follow-up action, the current Rural Agribusiness Development Program (PUAP) is expected to help farmers through its microfinance institution in funding the farm activities. The role of microfinance is part of the climate change anticipation strategy and is very significant to help farmers to envisage the effect of harvest failure risk.

Agricultural Insurance, Indonesia
Food, Politics, and Cultures
Paper Presentation in a Themed Session

Hasanawi Masturi

Associate Professor, Department of Agricultural Economics/Agribusiness, University of Muhammadiyah Bengkulu, Indonesia
Bengkulu, Indonesia

Hasanawi Masturi currently live in Bandung, West Java, Indonesia. Hasanawi is a lecturer and Associate Professor of Department of Agricultural Economics/Agribusiness, University of Muhammadiyah Bengkulu, Bengkulu, Indonesia.

Asyrafinafilah Hasanawi

Student, Urban and Regional Planning, Institut Teknologi Bandung, Indonesia
West Java, Indonesia

Asyrafinafilah Hasanawi is currently a graduate student and assistant research of Urban Planning and Design Research Group at School of Architecture, Planning, and Policy Development, Institut Teknologi Bandung, Bandung, Indonesia. Filah pursues Bachelor and Master Degree since 2013 (Fasttrack Program, 5 years) in Department of Urban and Regional Planning, Institut Teknologi Bandung, Bandung, Indonesia. Her research has embraced urban planning with a special emphasis on the housing and land development. She also the researcher of Research Institute of Housing and Human Settlements - Ministry of Public Works and Housing, Republic of Indonesia.