Preview Conditions and Financing Agricultural Development in Indonesia .
Indonesia is an agricultural country , meaning that agriculture plays an important role on the overall national economy . This can be in the show from the number of residents or workers who live or work in the agricultural sector or from the national product derived from agriculture . But quite regrettable conditions of agricultural enterprises in Indonesia is still far from the word " good " this fact can be seen from the low standard of living of farmers in Indonesia and the inability of the Indonesian agricultural products enter the international market . In fact , if we look at our neighboring country of Thailand is also a farm that is not too special agriculture and technology then we will feel jealous of his success to penetrate the international market even Thailand is able to release products that are well known to holtikuktura archipelago such as Bangkok guava , durian Bangkok , Thailand Papaya is a line of products that are very familiardengan us .
From this will arise the question of why agriculture in Indonesia can not afford that , from here we try aka study of the development and financing of agriculture which is the cycle of Indonesian agriculture . But before we try to learn the king of Thailand as a farm business in the Asian region . At Country Thailand in terms of financing does not have to wait for the credit scheme such as Indonesia for working capital . This situation has caused Thailand's Bank for Agriculture and Agricultur Coomperatives ( BACC ) . financial institutions that are specific to the agricultural sector . Requirements to become a member ( BAAC ) is also not difficult especially petni who are members of certain cooperatives . Also in Thailand can be said to have no problem with the seeds in terms of both quality and quantity . MOA and also entrepreneurs are always ready with providers of seeds required by the farmers . Research to find improved varieties has become keharysan in Thailand . The government was also very instrumental in mbuka local market for agricultural products . It even has a giant wholesale market Thaalad Thai measuring 80 acres which they claim as the largest center of agricultural product markets in Asia . Access to world markets for Thai farmers have become commonplace so it is not surprising agricultural products reaching international markets such as the U.S. , Japan , Taiwan , China , Singapore , including Indonesia .
From the above description of the Thai agriculture we will certainly know the financing and development of agriculture in Indonesia Indonesian agricultural research are troubling most were content to develop only on until the formation of a network of a cell into a tree only. Even studies in Indonesia does not lead to an increase in quality , such as expanding the number of fruit , in order to improve the quality better than its parent . Weak government policies on the agricultural sector . Hand, agricultural finance in Indonesia also artifacts such as not touching the issue of agricultural businesses and banks so that 70 % to 90 % in Indonesia in the contents of agricultural financing by loan sharks .
From here is not excessive if farmers in Indonesia synonymous with poverty and have no Indonesian agricultural products to penetrate the international market . From this course can be seen to break the cycle needed pelaanan agricultural problems of financial or credit that favor agricultural sector with low interest rates and easy terms to improve the competitiveness of berkerakyatan , sustainable and decentralized spanning both the upstream aspects , aspects of cultivation and downstream aspects . Financing aspects that we need to heed the discourse caused us to Thailand , where they set up to promote agriculture bank specializing in the agricultural sector .
Preview Development And Financing Pattern Islamic Bank For It .
Islamically Kegiatanpertanian divided into 3 ( three ) , namely : Consumption , Savings , and Investment and in the pattern of moderate Islam teaches economics ( the middle ) is not excessive nor unreasonable . , This can be seen in the letter of Al - Isra ( 17 ) paragraph 27, which prohibits waste , " Behold, the person doing it is sausdara devil brothers " . Of the doctrine of the Holy Qur'an in general can be interpreted economically encourage egress consumer surplus in the form of deposits collected for later use in dividing the investment . from here takes an intermediate between the unit supply and demand units that bank .
The development of Islamic banks using perinsip growing very rapidly in Indonesia . The first Islamic bank in Indonesia established in cooperation with the MUI and PT Bank Muamalat Indonesia ( BMI ), which was signed certificate founding date of 1 November 1991 . BMI currently already has dozens of branches in several major cities of Jakarta , Surabaya , Makassar , and the cities lain.Disampim BMI , born today state-owned Islamic banks such as Bank Syariah Mandiri ( BSM ) . Then the next stand of Islamic bank as a branch of the existing conventional banks .
In Islamic economics needed an Islamic bank or USING Islamic principles . Principles of Islamic principles must prohibit usury element in banking is interest . For the payment mechanism will be discussed here in Islamic banks , the Islamic finance instruments are not known but the interest or profit sharing profit and loss sharing . But first we need a mechanism for the results mangetahui helps us to know the characteristics of Islamic Banking sadur of a collection of Islamic Banking Training Goes To Campus 2004:
1.Berdasarkan perinsip sharia perinsip
2.Impementasi Islamic economic principles with traits :
a. Malarang usury in its various forms
b . Not familiar with the concept of " team - valueOf money "
c . Money as a medium of exchange that is not komoniti per trade in
3.Beroperasi on the basis of the results
4.Kegiatan attempt to obtain a reward for services
5.Tidak using the " interest " as a means to earn income
The main 6.Azas = > Partnership , fairness , transparency , and Universal
7.Tidak distinguish explicitly the monetary sector and the real sector = > can do real sector transactions .
System for Islamic banks results in a proportional manner between Shohibul maal mudhorib premises . Shared is gain ( profit ) and if there is a loss then the cost of the loss is not due to kelalayan mudhorib it will be borne by Shohibul maal.dan profit sharing is not done before the loss has been closed and equity Shohibul Maal has paid the following description of the financing system for the results in the Bank Sharia .
But keep in mind that the principle of sharing is kurangberjalan because it is still dominated by the principle that almost 70 % murobahah . This is caused Islamic banks itself is still difficult to channel funds to the pattern of results on the safety effort and low risk . Agricultural financing worth financing by Islamic banks because of its characteristics accordingly. On the one hand, the agricultural sector has not been touched by the banking sector .
Overview of Islamic Financing Mechanism To Be Used Agricultural Business Development .
On the mechanism of Islamic banks , usually profit sharing principle applies to investments in such products , Al - Musharaka , Mudaraba Al , Al - muzara'ah , Al - Musaqah , while agriculture has planned a micro-finance scheme using Islamic banks . One way as has been described by the chairman of the Association of Islamic Economics ( IAEI ) Mustafa Edwin Nasution at No. Capital reports in the tabloids . 25 , March 2005 , for example applying SOE profits funds in Islamic banks with skim Mudaraba muqadayah . bank then later submit these funds to SMEs , either through cooperative channeling of sharia , or BMT , as well as directly to its business units .
In such exposure also mentioned technical departments , functions as a guarantor of the financing provided by the bank . So it does not harm the banking sector and small businesses elicits goal to be achieved . To guarantee the MOA since 2002 has pioneered and examine patterns of agriculture . Currently teredia fund of Rp 95 billion of this funding will be allocated to dijadika Islamic finance pilot project in 10 provinces , will be used to ensure the 1,000 small businesses and farms about 500 Islamic MFIs are in the center of agricultural products , which can finance the 10,000 farms . Islamic finance guarantee program is a breakthrough program to help farmers get penbiayaan of banking services through the preparation angunan ( Coleteral ) from the state budget . To reduce farmers so decent credit funded by the bank . So that farmers have not bankable to be served by banks and Islamic financial institutions .
Relevance Against Sharia Financing Agricultural Business Development .
The design proposal of Islamic finance in the agricultural business in Indonesia , since 2003 actually desired by the department of agriculture , but this new desire merely wishful thinking though MOA has organized seminars Islamic finance to the agricultural sector , but there is no follow up in the same direction . New on 11 November 2004 , after the change of government of Megawati Sukarnoputri to Susilo Bambang Yudhoyono that followed the turn of the cabinet , including the ministers of agriculture , the idea followed up .
Follow-up in November 2004 is not just a follow-up but made increasingly pursed up in the form of action . The convergence of this action in the form of a meeting between the Ministry of Agriculture with the authority terkaittermasuk Indonesian banks , Islamic financial institutions and guarantee institutions . The program was welcomed enthusiastically by Islamic banks , then signed a Letter of intentdengan three (3 ) Islamic banks namely , Bank Muamalat Indonesia, the Islamic bank Mandiri and BNI Syariah .
From the picture above that explained menenai design , flow up , to follow up the cooperation between Islamic banks and agricultural businesses in Indonesia , the author tries to analyze the relevance of Islamic finance to the agricultural business . But before analyzing we need to understand the meaning of this analysis . Relevance is actually a foreign loan word is used as an everyday language in Indonesia . Relevance is derived from the relevant = > appropriate , suitable , proper , while the uptake of relevance according to the dictionary written by JS Badudu Relevance = > suitability , compatibility , relationship , relationship . So the relevance of Islamic finance to the development of agriculture is the suitability of Islamic finance in the agricultural business development in Indonesia .
Furthermore, now we will try to analyze the suitability of Islamic finance in agricultural development in Indonesia . Analyzing this would technically be studied as such in section III of this paper writing method with the method of literature review in which the analysis is based on a critical review of the relevant library materials . Theoretically Indonesian agricultural constraints according PERHEPI (1989 ) are :
The pattern of utilization of agricultural enterprises in certain places often scattered , making it difficult coaching and also make it difficult to achieve the level of efficiency that is expected . Farms scattered also invited to lack of good ecosystem so that such conditions encourage the emergence of pests and diseases . Especially if the location was not pursued scattered plantings in unison .
The pattern of utilization of agricultural businesses are less successful because it is not supported by adequate infrastructure .
The pattern of utilization of agricultural enterprises often high cost economy in terms of the high cost per unit . Polapengusahaan farms are still oriented to production and market requirements . Agro-industry convergence pattern yangcendrung located in urban areas . The existence of institutional systems in rural areas that do not mendukung.Dan according Murbayanto (1995 ) in his book Introduction to Agricultural economics state that agricultural constraints in Indonesia centered on agriculture financing pattern , where many Indonesian farmers are entangled Ijon system .
It required improvements in the business of financing patterns in Indonesia . Financing with conventional pattern less appropriate given the high risk of the agricultural venture in Indonesia, which many depend on natural factors , whereas conventional financing tend to charge the credit risk and business risk on debtors ( farmers ) , it is necessary to finance the more patterns are very conservative for farmers in need .
Islamic banks here to be the answer to the problems of financial , business financing agriculture in Indonesia because it is in accordance with the characteristics of Islamic banks which use the principle of Profit and Loss Sharing . In addition the system has a principle of Islamic finance services needed by farmers . In the Islamic finance system set the system to the risk and revenue sharing is fair to take into account the profit and loss , and no determination of the amount of gain on the initial agreement and the determination of the results based on the amount of profit that was obtained from the business done .
From this we can understand that Islamic finance is highly relevant for the development of agriculture in Indonesia given the various problems mentioned diatasa agriculture can be addressed by the Islamic banking financing scheme that applies to the risk and revenue sharing is fair to take into account the presence of gains and losses . And of course relevance ( kesesuaiaan Islamic financing for Agriculture of Indonesia is very strong effort .