Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Andin Aditya Rahman
Bank Indonesia (BI) and the Ministry of Agriculture have entered into an agreement to establish a beef cattle insurance system. Halim Alamsyah, Deputy Governor of BI, stated that the program is for the implementation of the 2011 memorandum of understanding between BI and the Ministry of Agriculture.
According to Halim, the primary aim of the insurance is to increase access to agricultural financing. It is also intended to assist the development of the beef cattle sector as another concern and priority of the Government is satisfying the high domestic demand for beef.
“It is appropriate that livestock businesses receive special attention for the minimization of risk through risk management in the form of insurance,” he explained in Jakarta on Wednesday.
Given the substantial amount of credit involved in this particular sector, the need of beef cattle insurance is apparent.
As of August 2013, BI data indicates that total livestock credit reached IDR 11.7 trillion. This equals 7.35 percent of the total commercial bank credit for the agricultural sector of IDR 158.5 trillion. The total credit of small and micro businesses in the agricultural sector amounts to IDR 43.73 trillion, of which 14.95 percent or IDR 6.5 trillion is for the livestock sector.
Halim further explained that the beef cattle insurance program will provide a guaranteed replacement for livestock owners. However, replacements will only be granted if the death of the cattle is caused by disease, accident, while giving birth, cattle going missing, or other risks covered by the insurance policy.
To affirm the legality of this insurance, Halim explained that this program has secured an official license from the Financial Services Authority (OJK) implemented through the appointment of the Beef Cattle Insurance Consortium (KATS).
KATS is led by PT. Asuransi Jasa Indonesia (Persero), a state-owned insurance company, and is comprised of other insurance companies including PT. Asuransi Umum Bumiputera Muda 1967, PT. Asuransi Tri Pakarta, and PT. Asuransi Raya. KATS will be in charge of marketing the beef cattle insurance program throughout Indonesia.
The Ministry of Agriculture has responded positively to the newly-established program. Rusman Heriawan, Deputy Minister of Agriculture, hopes that the beef cattle insurance can further support sole proprietorship beef businesses and increase the capacity of the beef cattle businesses in general.
“The beef cattle insurance system is marvelous, it involves the Ministry of Agriculture, BI, Ministry of Finance, OJK, bank credit implementers working as a unified livestock insurance financing and the consortium,” stated the Minister.
(hot/kc)
Fathan Qorib, Andin Aditya Rahman
Bank Indonesia (BI) and the Ministry of Agriculture have entered into an agreement to establish a beef cattle insurance system. Halim Alamsyah, Deputy Governor of BI, stated that the program is for the implementation of the 2011 memorandum of understanding between BI and the Ministry of Agriculture.
According to Halim, the primary aim of the insurance is to increase access to agricultural financing. It is also intended to assist the development of the beef cattle sector as another concern and priority of the Government is satisfying the high domestic demand for beef.
“It is appropriate that livestock businesses receive special attention for the minimization of risk through risk management in the form of insurance,” he explained in Jakarta on Wednesday.
Given the substantial amount of credit involved in this particular sector, the need of beef cattle insurance is apparent.
As of August 2013, BI data indicates that total livestock credit reached IDR 11.7 trillion. This equals 7.35 percent of the total commercial bank credit for the agricultural sector of IDR 158.5 trillion. The total credit of small and micro businesses in the agricultural sector amounts to IDR 43.73 trillion, of which 14.95 percent or IDR 6.5 trillion is for the livestock sector.
Halim further explained that the beef cattle insurance program will provide a guaranteed replacement for livestock owners. However, replacements will only be granted if the death of the cattle is caused by disease, accident, while giving birth, cattle going missing, or other risks covered by the insurance policy.
To affirm the legality of this insurance, Halim explained that this program has secured an official license from the Financial Services Authority (OJK) implemented through the appointment of the Beef Cattle Insurance Consortium (KATS).
KATS is led by PT. Asuransi Jasa Indonesia (Persero), a state-owned insurance company, and is comprised of other insurance companies including PT. Asuransi Umum Bumiputera Muda 1967, PT. Asuransi Tri Pakarta, and PT. Asuransi Raya. KATS will be in charge of marketing the beef cattle insurance program throughout Indonesia.
The Ministry of Agriculture has responded positively to the newly-established program. Rusman Heriawan, Deputy Minister of Agriculture, hopes that the beef cattle insurance can further support sole proprietorship beef businesses and increase the capacity of the beef cattle businesses in general.
“The beef cattle insurance system is marvelous, it involves the Ministry of Agriculture, BI, Ministry of Finance, OJK, bank credit implementers working as a unified livestock insurance financing and the consortium,” stated the Minister.
(hot/kc)