| Abstrakt: |
Insurance for paddy farmers or Asuransi Usaha Tani Padi (AUTP) and MSME credit or Kredit Usaha Rakyat (KUR) are government's programs to support farmers in Indonesia. However, many farmers still have not accessed KUR due to failing to pass credit checking against the Financial Information Service System. Integration of AUTP and KUR offers a solution to increase KUR accessibility for farmers and supports thebank to manage credit risk. Some selected districts in Indonesia have been chosen to implement the integration program. Therefore, this study aims to map paddy farmers' profile and understand the potential of the integration program across districts in Indonesia. In addition, we analyzed factors that influence the farmers' willingness topay (WTP) for the integration program premium. The biplot analysis proposed four groups among the researched regions. Group 1 consist of Karawang, Simalungun, and West Lombok, Group 2 consist of Malang, Lamongan, Cirebon, Bandung, Central Lombok, and Langkat, Group 3 consist of Kulon Progo, and Group 4 consist of Sleman, Bogor, Sukoharjo, and Klaten. Group 1 and Group 2 are the most favorable groups for the integration program. The median WTP across the regions is IDR 50,000 with an average of IDR 70,343. Based on the random forest analysis, we concluded nine importantfactors influencing the WTP, including; agricultural income, credit source (financial institutions), age, total land area, loanamount, insurance satisfaction, farming experience, non-agricultural income, and formal education. Among those factors,agricultural income, insurance satisfaction, non-agricultural income, and formal education have a positive correlation withWTP. Meanwhile, the other factors are negatively correlated with WTP. [ABSTRACT FROM AUTHOR] |
