A Comparison of Sharia-Based and Conventional Rice Farming Insurance Regulations is Presented: Implications for Legal Protection and Farmer Empowerment in Indonesia

DOI

10.2991/978-2-38476-519-5_5How to use a DOI?

Keywords

Agricultural insurance; sharia; conventional; legal protection; farmer empowerment; regulation

Abstract

This study aims to compare conventional and sharia-based Rice Farming Insurance (AUTP) regulations in Indonesia and analyze their implications for legal protection and farmer empowerment. The study focuses on differences in principles, legal bases, implementation mechanisms, and legal certainty received by farmers as insurance participants. The research employs a normative legal approach using a comparative study method, utilizing primary data sources such as laws and regulations, ministerial regulations, regulations from Financial Services Authority (OJK), and fatwas from the National Sharia Council-Indonesian Ulema Council (DSN-MUI). The analysis was conducted through document review, substantive comparison, and normative interpretation of the compliance of regulations with principles of justice and legal protection. The research findings indicate that conventional AUTP has a comprehensive legal framework through Law No. 19/2013, Law No. 40/2014, Ministerial Regulation No. 40/2015, and clear technical guidelines, thereby providing a high level of legal certainty, standardized claim procedures, and effective institutional coordination between the OJK and the Ministry of Agriculture. Conversely, sharia-based AUTP, although based on Law No. 40/2014, POJK No. 72/2016, and DSN-MUI fatwas, lacks sectoral technical regulations from the Ministry of Agriculture, resulting in its implementation being limited to pilot projects and individual contracts with relatively low legal certainty. The sharia scheme emphasizes the principles of tabarru’, fairness, transparency, and mutual assistance, and has potential to provide more ethical protection if supported by adequate technical regulations and institutional coordination. These findings underscore the need to reformulate policies to strengthen regulatory harmonization and ensure equal legal protection for all farmers.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ahmad Imam Hambali
AU  - Burhanudin Harahap
AU  - Anjar Sri Ciptorukmi Nugraheni
PY  - 2025
DA  - 2025/12/29
TI  - A Comparison of Sharia-Based and Conventional Rice Farming Insurance Regulations is Presented: Implications for Legal Protection and Farmer Empowerment in Indonesia
BT  - Proceedings of the 3rd International Conference on Law, Economics & good Governance (ICLAW 2025)
PB  - Atlantis Press
SP  - 42
EP  - 52
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-519-5_5
DO  - 10.2991/978-2-38476-519-5_5
ID  - Hambali2025
ER  -