NATIONAL ACTION PLAN ON CLIMATE CHANGE ADAPTATION
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1 A Brief Summary of Indonesian Case NATIONAL ACTION PLAN ON CLIMATE CHANGE ADAPTATION Yoga Prasetyo PT. Asuransi Allianz Life Indonesia
2 Position of National Action Plan on Climate Change Adaptation (RAN-API) in The National Development Framework* Abbreviations: RPJPN: Long Term National Development Planning. RPJPD: Long Term Regional National Development Planning RTRWN: National Spatial Planning RTRW Kab: District Spatial Planning RDTR: Detailed Spatial Planning; Renstra K/L: Line Ministries s Strategic Plan RPJMN: Mid Term National Development Planning RPJMD: Mid Term Regional Development Planning Renstra SKPD: Local Government Agency s Strategic Planning Renja K/L: Line Ministry WorkPlan RKP: Government Work Plan RKPD: Local Government Work Plan Renja SKPD: Local Government Agency s Work Plan Source: National Action Plan for Climate Change Adaptation (RAN-API). Synthesis Report. Ministry of National Development Planning/ National Development Planning Agency (Bappenas) /04/2018 2
3 Indonesia Climate Change Sectoral Roadmap - ICCSR Indonesia Climate Change Sectoral Roadmap ICCSR* Adaptation Sectoral Mitigation Sectoral ICCSR Agriculture Sector** Roadmap: Research & Development Anticipation Advocation Adaptation & Mitigation Green House Gas Emission Reduction 02/04/ Agriculture 2. Marine and Fisheries 3. Health 4. Water Resources 5. Forestry 6. Energy 7. Industry 8. Transportation 9. Waste Management Mention about climate risk insurance/ agricultural insurance/ fishermen insurance Source: *) Indonesia Climate Change Sectoral Roadmap. Synthesis Report. Ministry of National Development Planning/ National Development Planning Agency (Bappenas) **) Indonesia Climate Change Sectoral Roadmap Agriculture Sector. Ministry of National Development Planning/ National Development Planning Agency (Bappenas) and Minisitry of Agriculture
4 Regulations Related to Climate Risks Law No. 19/2013 on the Protection and Empowerment of Farmers Government of Indonesia (GOI) is obligated to provide protection for farmers, through: Agricultural infrastructure development Certainty of farming activities Price stabilization Elimination of high cost economics Compensation for crop failure due to extraordinary events Early warning systems and addressing climate change impacts Agricultural insurance The agricultural insurance should covers risks of harvest failures due to: Natural disaster Pest and diseases attack Outbreaks of animal infectious diseases Impact of climate change Other risks as regulated in the Minister Decree Government should assign either state-owned or regionalowned enterprises that are relevant to provide agricultural insurance. Law No. 07/2016 on the Protection and Empowerment of Fishermen, Fish Raisers and Salt Farmers Protection and empowerment of fishermen, fish raisers and salt farmers are aimed to: Provide infra structure Giving certainty of fishery activities Building the capacity of fishermen, fish raisers and salt farmers Protect fishermen, fish raisers and salt farmers from calamity risks, climate change and environmental pollution Giving assurance on safety and security Giving legal advocacy Protection should be given in form of fisheries insurance which at least providing benefit of: Personal accident Life insurance Government should assign either state-owned or regionalowned enterprises that are relevant to provide agricultural insurance.
5 Products and Services Related Agricultural Insurance Guidance for Premium Subsidy of Rice Farming Insurance 2017 Rice Farming Insurance Insured Object Insurer Period of cover Sum assured Total Premium Groups of rice farmers Rice land PT. Asuransi Jasa Indonesia (Jasindo) - Consortia One harvest cycle (4 months) Rp (USD 450) per hectare Total Rp per hectare (3% of average farming production cost) Rp (USD 2.7) per hectare Premium paid by farmers Risks covered Floods Droughts Pest and diseases
6 Involvement of Private Insurance Companies There is no specific mention in any regulation about inviting private insurance company to involve in the climate risk insurance For most of insurance companies, it is considered as terra incognita Author s opinion: Most of private insurance companies in Indonesia still rely on the lowest hanging fruit business Some of them might be progressive enough to involve in the pilots, forums or working groups on CRI. However, the level of popularity of CRI is still below microinsurance in general MEFIN could act as promoter that clear the vision of private companies towards CRI as well as facilitating connection with other stakeholders At the end of the day, private companies will always ask what is in it for me, either in the short term or in the long term
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