Literasi Asuransi, Keputusan Petani menjadi Peserta AUTP, dan Dampaknya terhadap Kinerja Usahatani Padi di Provinsi Aceh

Abstract

Rice farming has various risks and uncertainties, including attacks by plant-infecting organisms (OPT), floods, and droughts. This can cause crop failure and financial losses for farmers and threaten the sustainability of farming businesses. Farmers need to make efforts to mitigate the risks they face. One solution to reduce the impact of these losses is that farmers can participate in the rice farming insurance program (AUTP). Although the government has implemented the AUTP program since 2015, the number of farmers participating in AUTP in Aceh is still low. The low number of farmers participating in AUTP can be caused by many factors, namely, lack of information about AUTP, lack of insurance education, farmers' understanding of insurance, and the perception of complex insurance claim procedures. In addition, it is thought to be caused by the farmer's insurance literacy factor. Insurance literacy is an individual's understanding of the concept, benefits, risks, and use of insurance products. The insurance literacy index of the Indonesian people is still below the banking literacy index. Insurance literacy directly influences behavioral intentions to buy insurance. The Ministry of Agriculture has been running the rice farming insurance program (AUTP) and AUTP premium subsidy since 2015. The main target of the AUTP premium subsidy is the AUTP premium subsidy for farmers who own or cultivate rice fields and cultivate rice plants on a maximum of 2 (two) hectares per registration per planting season (MT). The Ministry of Agriculture collaborates with an insurance company, namely PT. Jasindo provides qualified rice farming insurance products. The implementation rate of this AUTP program remains relatively low, at only 17 percent. This study aims to (1) analyze farmer insurance literacy and the variables that influence it, (2) analyze the influence of farmer insurance literacy on farmers' decisions to become AUTP participants and other variables that influence farmers' decisions to become AUTP participants, and (3) analyze the impact of the AUTP program on the performance of rice farming businesses. The study was conducted in Aceh Province. The selection of South Aceh and Aceh Besar Districts is because the two districts are areas in Aceh Province that have the largest number of AUTP participants. Aceh Province and its surrounding districts/cities boast high rice productivity. The study was conducted from October to December 2022. The method used to achieve the first research objective used multiple linear regression and Tobit regression, the second objective used logistic regression, and the third objective used probit/logit regression with the propensity score matching (PSM) approach. The type of data used is cross-section. Primary data was obtained from questionnaires and direct interviews with respondents. The results of the study showed that the average insurance literacy value of respondents was 45.56 at the less literate level. Variables that significantly affect insurance literacy are age, duration of education, and bank account ownership. Farmers who access AUTP are still far from the target set. The reasons why AUTP is not accessed by farmers are (1) not knowing about the AUTP program iv and AUTP premium subsidies, (2) not needing insurance, and (3) other members not wanting to participate. (4) Not active in farmer groups. Variables that significantly and significantly affect AUTP accessibility include age, duration of education, farm business acceptance, land ownership, insurance literacy value, farmer group activity, risk perception, past insurance claim experience, and insurance premiums. Insurance literacy positively and significantly affects AUTP accessibility. AUTP access has a positive impact on rice farming performance, namely increasing fertilizer use by 34 percent per hectare, pesticide use by 17.41 percent per hectare, use of labor from outside the household by 7.74 percent per hectare, production by 47.91 percent per hectare, and farm profit by 85 percent per hectare. Farmers receiving AUTP premium subsidy assistance stated that the AUTP premium subsidy assistance program needs to be continued. Policy implications that can be taken to improve insurance literacy: the government needs to carry out educational activities through both formal and non-formal education. Formal education can be done by including insurance literacy materials in the education curriculum from elementary to secondary education levels. Non-formal can be done through community-based insurance literacy socialization by adjusting educational materials to the conditions of the target community. There are several things that need to be considered so that the insurance education program runs well. First, the government needs to facilitate by providing a budget and infrastructure to support it. Second, the education program schedule can be carried out routinely/monthly. Third, educational materials can be adjusted to the conditions of the target community by using easy-to-understand language, simple terms, and demonstration tools and delivering them with an interactive approach. Efforts can be made to increase the number of farmers participating in the Rice Farming Insurance (AUTP) and expand the reach of the program through several steps. First, the function of farmer groups should be strengthened, and incentives should be provided to farmer groups with a high level of AUTP participation. Second, the role of agricultural extension workers should be optimized by training field extension workers to understand the concept, benefits, and mechanisms of agricultural insurance as a whole. Third, encourage insurance companies to simplify claim procedures by designing simpler, faster, more transparent, and easier-to-understand claim mechanisms. Fourth, we expect the government to maintain the 80 percent premium subsidy policy, ensuring AUTP premiums remain affordable, particularly for small farmers.