Protecting the Farmers: Improving The Quality of Social Protection Schemes for Agricultural Workers in Indonesia
The agriculture sector covers 34% of the total employment in Indonesia. Unfortunately, most people who work in the agriculture sector in Indonesia live below the poverty line or just slightly above it. To address this situation, the government subsidizes the purchase of seeds, fertilizer and rice. However, it has been shown and admitted by the government that such an approach is ineffective.
Possible solutions to improve the welfare of these farmers could include firstly, the reallocation of funds from ineffective subsidies to more targeted programs such as PHK, KIS, and AUTP schemes. Secondly, expanded coverage for these programs to cover those that need them the most, and thirdly, the further development of the state insurance program to help farmers who are at risk of crop/harvest failures.