As quoted by the Indonesia government that it has decided to provide rice insurance subsidy to farmers for the 2015-16 rice growing season (October 2015 – March 2016). The official of Agriculture Infrastructure and Facility of Agriculture Ministry informed that the government would provide a subsidy of 144,000 Rupiah (around $10) per hectare in the insurance premium. The farmers have to pay only 36,000 Rupiah (around $2.5) per hectare against the actual premium of 180,000 Rupiah (around $12.5). The insured value of the crop in case of crop failure is 6 million Rupiah (around $418).
Further, the government will set aside of 150 billion Rupiah (around $10.44 million) for 1 million hectares of rice fields. It will prioritize insurance for rice farmers in 16 provinces under special program. Meanwhile, the sources also said that the agency has so far bought 2.2 million tons of rice from farmers and it has 1.7 million tons in its stockpile.
In this matter, the government is also targeting rice sufficiency to avoid imports in this year. It has been reiterated by the Ministry that the country’s rice production is safe despite the on-going dry weather conditions due to the El Nino weather pattern. Further, the reporter told that it is expecting a 7% y/y increase in paddy rice production to around 75.2 million tons in 2015 as compared to around 70 million tons in 2014.