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The agricultural development policy of Indonesian government has been to achieve self-sufficiency in rice. However, rice production growth is critical to increase availability, accessibility, and affordability following the impact of global climate change. The farmers have continued to face rice production risk and harvesting failure. Insurance is introduced in favor of farmers to protect rice farm from great loss caused by flood, drought and pest and diseaseinfestations. A pilot program is formulated to obtain knowledge about insurance application. Rice farm insurance scheme would successfully work with three-way coordination active roles of the government, the farmers and the insurance company.
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Sahat M. Pasaribu (2010) studied this question.
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