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Disaster Threats to Food Security
Indonesia is one of the countries most prone to natural disasters in the world. Its geographical location on the Pacific Ring of Fire makes our country often hit by earthquakes, volcanic eruptions, floods, droughts, and landslides. The agricultural sector is one of the sectors most vulnerable to the impacts of these disasters.
In the context of national food security, natural disasters not only cause land damage and loss of crops, but also disrupt the food supply chain, trigger price inflation, and weaken people’s purchasing power. In the long term, this can lead to dependence on food imports, increasing poverty rates, and reducing the interest of the younger generation to enter the world of agriculture.
As the frequency and intensity of disasters due to global climate change increases, risk management strategies in the agricultural sector can no longer be reactive. A comprehensive and planned risk management approach is needed, involving all stakeholders, including central and local governments, farmers, financial institutions, and the private sector.
One solution that has proven effective in mitigating disaster risks is agricultural insurance. With insurance protection, farmers can remain economically viable when they experience losses, while maintaining the stability of food production and supply. This article will discuss the types of disaster risks in agriculture, their economic impacts, relevant protection schemes, and educational strategies and policies that can be implemented nationally.
Types of Disaster Risks That Commonly Occur in Agriculture
Indonesia’s agricultural sector faces a variety of disaster risks that occur periodically or suddenly. These disasters not only impact crop and livestock production, but also cause extensive economic losses for farmers, agribusiness actors, and local governments.
- Floods and Inundation
Floods are one of the most common disasters that attack agricultural land, especially in lowland areas such as Central Java, Sumatra, and Kalimantan. In addition to damaging growing crops, floods can also damage irrigation networks, accelerate soil erosion, and trigger the spread of plant and livestock diseases.
- Drought and Extreme Weather
Drought is a serious threat in many parts of eastern Indonesia and rain-fed agricultural areas. Unpredictable extreme weather such as El Nino has a major impact on decreasing crop yields and even total crop failure. Drought also causes water shortages for irrigation, forcing farmers to delay or even stop planting activities.
- Plant Pest Organisms (OPT) Attacks and Livestock Outbreaks
Climate change also drives an increase in the number and spread of pests and plant diseases, such as planthoppers, armyworms, and stem borers. In the livestock sector, the emergence of outbreaks such as African Swine Fever (ASF) and Foot and Mouth Disease (FMD) are real threats that cause mass livestock deaths and major losses.
- Landslides and Volcanic Eruptions
In the slopes and mountains, farmers face the risk of landslides that can destroy agricultural land instantly. In addition, volcanic eruptions such as Merapi, Semeru, or Sinabung not only bring volcanic ash that damages crops, but also force relocations and disrupt long-term planting cycles.
- Whirlwinds and Tidal Waves
Horticultural farmers and fishermen in coastal areas often suffer losses due to strong winds and high waves. Damage to infrastructure, damage to crops, and loss of crops in a short time are routine problems that often go unaddressed.
Each of these disaster risks requires a different management and protection approach. But they all have a common thread: unpreparedness for disasters will have a direct impact on national food availability.
Economic Losses Due to Agricultural Disasters
Natural disasters that hit the agricultural sector not only cause physical damage to land, crops, or livestock, but also result in significant economic losses for individual farmers and for the regional and national economy. In many cases, a single failed planting season can trigger a domino effect that worsens poverty and reduces the competitiveness of Indonesian agriculture.
According to data from the National Disaster Management Agency (BNPB) and the Ministry of Agriculture, losses due to agricultural disasters can reach trillions of rupiah per year, especially due to floods and droughts. In food center areas such as Indramayu, Demak, and Bojonegoro, seasonal floods routinely damage thousands of hectares of rice fields and cause crop failures, so that farmers lose income, and the government must issue emergency aid funds.
This loss is not only felt directly by farmers, but also has an impact on the supply chain. Food prices become unstable, distribution is disrupted, and in the long term it can cause inflation of basic commodities. When this risk recurs without proper mitigation, investors in the agricultural sector will be hesitant to participate, and insurance will be reluctant to bear high risks without systemic support.
In addition to economic losses, there are also social losses such as seasonal unemployment, migration from villages to cities, and declining interest of the younger generation in the farming profession. This weakens the rural social structure and increases the challenges of farmer regeneration in the future.
If these losses are not handled with a good risk protection system, the National Food Security program will be difficult to realize. This is where the importance of the presence of agricultural insurance is that it can provide quick compensation for affected farmers, while maintaining the continuity of post-disaster food production.
Here is the fourth part of the 3rd article:
Small farmers are the most vulnerable group in facing disasters in the agricultural sector. They generally have small land, limited capital, and are highly dependent on harvests for daily survival. When disasters such as floods, droughts, or pest attacks occur, they often lose all their sources of income without having a financial safety net. In this context, microinsurance is present as an affordable and relevant protection solution.
Agricultural microinsurance is a form of risk protection specifically designed to reach small farmers with low premiums and simple mechanisms. Its main purpose is not to replace the entire value of losses, but to provide minimum compensation so that farmers still have planting capital in the next season and do not fall into a cycle of debt or structural poverty.
In Indonesia, the government has implemented microinsurance programs such as Rice Farming Business Insurance (AUTP) and Cattle Business Insurance (AUTS), which offer large premium subsidies. Although these programs are positive, challenges remain, especially in terms of socialization, manual registration, and inefficient claims processes. To address these challenges, several regions have begun to try parametric or weather index approaches as faster, data-driven alternatives.
In a parametric scheme, claims are paid based on certain parameters such as rainfall recorded by sensors or satellites, without the need for field surveys. This scheme is more suitable for small farmers because the process is transparent, fast, and reduces administrative costs. However, the success of this scheme depends heavily on data and technology infrastructure, as well as educating farmers about how it works.
The role of insurance brokers such as L&G Insurance Broker is important in this regard. As a liaison between farmers, insurance providers, and the government, L&G can help design microinsurance products that suit local needs and educate farmers about the benefits of this protection.
With the right design, technology support, and multi-sector partnerships, microinsurance schemes can becomefoundationit is important to maintain food security from the grassroots.
Comparison with Other Countries (Case Study)
As an agricultural country that is vulnerable to natural disasters, Indonesia can learn a lot from the experiences of other countries that have previously developed risk protection systems through agricultural insurance. Case studies from India, the Philippines, and Japan show how insurance can be an integral part of the food security system, provided it is supported by consistent public policies, appropriate technology, and strong private sector involvement.
India – National Crop Insurance Scheme (PMFBY)
India introduced the Pradhan Mantri Fasal Bima Yojana (PMFBY) scheme as a very ambitious form of national crop insurance. The program covered over 50 million farmers with large premium subsidies and active involvement of private insurance companies. Area-based claims were used to expedite payments, and local governments were required to provide supporting data. Despite challenges in transparency and claims distribution, the scheme succeeded in increasing financial inclusion of farmers and making insurance a national protection tool.
Philippines – Weather Index and Multi-Sector Collaboration
The Philippines adopted a weather index insurance approach, especially for corn and rice farmers. The government worked with the private sector, donor agencies, and insurtech companies to develop a scheme based on weather parameters. As a result, claims can be paid in less than two weeks once the parameters are met. The project also involved digital education for farmers and integration of satellite data, which greatly increased farmers’ trust in the system.
Japan – Integrated Comprehensive Insurance Model
Japan offers one of the most advanced models, where agricultural insurance is not only for crop failure, but also covers insurance of farm assets, livestock, and income. The system is run cooperatively and is heavily supported by state subsidies. Japan combines a data-driven approach, risk mapping, and quality control of agricultural products to create a holistic and stable risk management system.
Lessons for Indonesia
From these three countries, it is clear that the keys to success are:
- Strong and consistent policy support,
- Integration of technology and data,
- Active involvement of brokers and private insurance companies,
- Systematic education for farmers.
Indonesia has great potential to develop a similar system. With a large farming population and increasing food needs, the implementation of index-based insurance, claims digitization, and public-private partnerships are strategic directions that must be taken immediately.
The Role of Local Government and Risk Education
The success of agricultural insurance programs in dealing with disaster risks is largely determined by the active role of local governments, which are at the forefront of policy implementation in the field. Local governments have direct proximity to farmers, access to local data, and the authority to allocate budgets and resources to support food security programs.
First, local governments can play a role in mapping regional risks. Through the agricultural service, information on potential floods, droughts, landslides, or pest attacks can be collected and analyzed to determine priority areas for protection. This risk map is also important for insurance companies in designing products that are in accordance with local characteristics.
Second, budget support through regional premium subsidies (APBD) is very important. Many small farmers are unable to pay the full premium even though the national program has provided subsidies. Provincial and district/city governments can provide additional subsidies so that the number of participants increases and the coverage of protection becomes wider.
Third, the role of agricultural extension workers needs to be strengthened to support risk management education and insurance literacy for farmers. Many farmers do not yet understand the concept of insurance, let alone the claim procedure. Therefore, extension workers can be agents of change who explain the benefits of insurance in simple terms, provide real case examples, and assist farmers in the administrative process.
In addition, local governments can also collaborate with insurance brokers such as L&G Insurance Broker to become strategic partners in the education process, policy registration, and claims assistance. With a consultative approach and digital technology such as LIGASYS, brokers can help improve the efficiency and transparency of the system.
Local governments can also act as facilitators of partnerships between farmers, cooperatives, BUMDes, and insurance companies. This collaboration can strengthen farmers’ bargaining position and create a sustainable risk protection ecosystem.
With strong synergy between the central and regional governments, accompanied by support from the private sector, agricultural insurance programs will be more inclusive, effective, and able to withstand shocks due to disasters systematically.
Conclusion and National Strategic Direction
Natural disasters are a real and recurring threat to Indonesia’s agricultural sector. The impact is not only physical damage, but also economic and social losses that threaten the stability of national food security. In facing this challenge, agricultural insurance is an important instrument to protect farmers and ensure the sustainability of food production.
However, for agricultural insurance to be truly effective, there needs to be a strong national commitment. The central government must continue to expand the coverage of insurance programs, simplify the claims system, and integrate data and digital technology. Local governments must be active in education, risk mapping, and providing additional subsidies for small farmers.
Private sector involvement, in particularinsurance broker like L&G Insurance Broker, it is essential to bridge the needs of the field with the appropriate protection products. L&G, with its experience and digital system support, is ready to be a partner in expanding access and literacy of agricultural insurance.
With a targeted, collaborative and sustainable strategy, Indonesia can build a resilient agricultural risk protection system – the main foundation for achieving true national food security.
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