In 1993, this was changed again, with responsibility for agricultural extension activities given to the Centre of Agricultural Extension, under the Secretary-General of the MoA. In 1996, MoA modified the structure of extension institutions by establishing an Agricultural Extension Office (Balai Penyuluhan Pertartian, BPP) in every district. This action was based on the belief that farmers required a more comprehensive agricultural extension, one that is more people and system-oriented rather than commodity-oriented (World Bank, 2007). Farmers pay a premium and they will receive an indemnity only if an extreme event (risk) and/or some minimum losses occur.