Indonesian association launches 2025–2030 roadmap to strengthen farm insurance

It aims to establish a sustainable ecosystem in support of national food security.

The Indonesian General Insurance Association (AAUI), in collaboration with the United Nations Development Programme (UNDP), has officially launched the 2025–2030 Roadmap for Agricultural Insurance Development. 

The roadmap, which was submitted to the Financial Services Authority (OJK) in December 2024, aims to establish a sustainable agricultural insurance ecosystem in support of national food security and improved risk protection for farmers.

AAUI Chairman Budi Herawan, speaking at the roadmap’s soft launch in Jakarta on 24 March, 2025, highlighted the strategic importance of agriculture to the national economy and its vulnerability to a wide range of risks, including extreme weather, climate change, commodity price volatility, pests, and disease. 

He emphasised the need for a systemic and integrated insurance approach to address these challenges.

The roadmap is the result of joint efforts between AAUI, UNDP’s Insurance & Risk Finance Facility (IRFF), and other stakeholders. 

It outlines strategies to strengthen risk mitigation in the agricultural sector and improve farmer welfare through increased access to insurance solutions.

OJK’s head of Regulation and Development of Insurance, Guarantee, and Pension Funds, Djonieri, stressed the urgency of developing parametric insurance in Indonesia. 

He noted that such products—which trigger payouts based on predefined parameters like weather indexes—can offer faster and more efficient support to farmers. 

He also pointed to Indonesia’s high disaster risk profile as further justification for innovation in agricultural insurance.

The roadmap is also intended to gauge industry interest in agricultural insurance and encourage engagement between insurers, regulators, and government stakeholders.