Strengthening rice crop insurance for sustainable rural development: Addressing farmers' needs and policy challenges

Effective risk management is essential for ensuring agricultural sustainability and rural economic stability, particularly for smallholder farmers who are vulnerable to climate risks. To address these challenges, the Indonesian government launched the Asuransi Usaha Tani Padi (AUTP) scheme, which provides financial protection for rice farmers. However, its effectiveness is undermined by low farmer participation, inefficient claims processing and policy constraints. This study uses a SWOT-TOWS framework and AHP to evaluate the factors that influence AUTP's performance. It identifies farmers' needs, policy support, budget feasibility and human resource availability as critical determinants. Based on these insights, three priority strategies are proposed: (1) developing new insurance models while maintaining subsidies; (2) strengthening socialisation and farmer awareness; and (3) integrating premium payments with farmer cards to improve accessibility. These findings provide a practical approach to improving agricultural insurance programmes, promoting financial resilience and advancing sustainable rural development.