Shrimp farmers now enjoy full protection from the government against potential harvest failure caused by diseases, fungus or even natural disasters.
Under a new insurance scheme worked out by the Financial Services Authority (OJK) and the Maritime Affairs and Fisheries Ministry, the government will pay for the entire premium, rather than just 80 percent, as in the past.
Farmers can put in up to three claims a year for up to Rp 5 million per harvest cycle, OJK deputy for non-banking financial industry M. Ihsanuddin said on Friday.
In the case of natural disasters, they can claim compensation for ponds amounting to a maximum of 50 percent of the losses.
To submit their claims, they need to present invoices for the seeds and equipment they had bought for the affected harvest period.
The insurance program covers more than 2,000 shrimp farmers managing a total of 3,300 hectares of ponds in 14 provinces. Their combined premium by the end of 2017 comes to Rp 1.4 billion (US$111,170).
Indonesia is the third-largest shrimp exporter in the world, after China and Thailand, according to the Global Aquaculture Alliance. Its exports of $1.8 billion account for 5 percent of the worldwide shrimp market.