Open AccessDesigning Rainfall Index Insurance for Rubber Plantation in Balikpapan
Author(s) -
Muhammad Azka,
Fauziyyah,
Primadina Hasanah,
Syalam Ali Wira Dinata
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1863/1/012018
Subject(s) - index (typography) , natural rubber , commodity , crop insurance , agriculture , crop , agricultural science , agricultural economics , business , environmental science , economics , geography , forestry , finance , computer science , chemistry , organic chemistry , archaeology , world wide web
Rubber commodity is one of the essential agricultural sectors in the City of Balikpapan. Rubber plantation has become a leading product to boost the economic growth in Balikpapan from the agricultural sector. However, this commodity is vulnerable through the changes of rainfall index since less rainfall can decrease the amount of latex in a rubber tree. This unexpected event will make a financial loss to farmers because of delaying the cultivation time. Therefore, the crop insurance for rubber farmers should be discovered. This study applied the Burn Analysis method to determine some classes of rainfall index and calculating the crop insurance premiums based on Black Scholes methods. The lowest class of rainfall index is 1264.36 mm with the crop insurance premiums at this class is Rp. 521,482.73. Otherwise, the highest rainfall index is 1761,36 mm whereas the premium level is Rp.568,592.93.