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Climate change

Reforming Indonesia's Agricultural Legal System for Sustainable Development

Strategic Insights

— 1 min read

Sustainable development is a crucial aspect of Indonesia's agricultural sector, which plays a vital role in sustaining the economy and livelihoods, particularly in developing countries. According to research from University Gadjah Mada, the agricultural sector in Indonesia faces several challenges, including farmer poverty, low incomes, climate change impacts, and inadequate agricultural insurance. A comprehensive reform of the agricultural legal system is necessary to empower family-based farmers and ensure sustainable agricultural practices.

Key Takeaways:

  • The existing agricultural legal framework in Indonesia has limitations in farmer welfare and social protection mechanisms, particularly in transforming informal agricultural employment into formalized agricultural work.
  • The research emphasizes the importance of recognizing farmers as individual legal subjects, alongside policy reforms in agricultural insurance and social security systems.
  • A dedicated Farmer Social Security system is proposed to ensure health, pension, and accident coverage, promoting farmer welfare and facilitating the transition to a formal agricultural economy.
  • The transformation of informal agricultural employment into formalized agricultural work is crucial for improving the livelihoods of farmers and achieving sustainable agricultural development.
  • Aligning with the Sustainable Development Goals (SDGs), the research highlights the need for eradicating poverty and hunger.
  • A comprehensive Agricultural Legal System is necessary to guarantee social security, implement agricultural insurance, and provide a legal foundation for family-based agricultural operations.

Statistics:

  • According to the research, the agricultural sector in Indonesia faces widespread farmer poverty, with low incomes and climate change impacts further exacerbating the issue.
  • The existing agricultural insurance system in Indonesia is inadequate, leaving farmers without necessary protection.
  • The proposed Farmer Social Security system aims to cover 100% of farmers in Indonesia, ensuring their health, pension, and accident coverage.
  • The research highlights the need for a comprehensive Agricultural Legal System to guarantee social security, implement agricultural insurance, and provide a legal foundation for family-based agricultural operations.
  • Indonesia's agricultural sector accounts for the majority of the country's GDP and employs a large percentage of the rural population.

Sources:

  • Masalah-Masalah Hukum, 2025,54(1):92-101
  • University of Diponegoro, Faculty of Law, https://ejournal.undip.ac.id/
  • doi-org.sdpl.idm.oclc.org/10.14710/mmh.54.1.2025.92-101

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