Sharia Banking Contract Model: Alternative Financing For the Agricultural Sector in Indonesia
Abstract
Introduction: In the Islamic conceptualization, banking has a central position as a financing institution for every Muslim that is free from ribawi elements. Sharia banking has made various efforts, such as formulating innovative products to meet credit needs. Unfortunately, these efforts are hampered by several factors, especially the mode of Sharia banking and the limited knowledge of Sharia banking staff regarding fiqh. One of the Sharia banking products that cannot be implemented until now is contracts sallam. Though Salam contract can accommodate credit needs, especially for farmers, promptly. In this case, of course, Islamic banking needs to take a role and take action to meet the needs of these farmers. Objectives: So, this paper aims to elaborate and formulate a contract model salam in banking by considering the problems faced by sharia banks and farmers. The formulation of the problem is how the contract model salam in sharia banking for agricultural financing in Indonesia. Method The approach used in this paper is qualitative with the type of research being the analysis content Results: The result of this research is that a contract salam can be implemented in Sharia banking. However, it requires an integration model from Sharia banking to microfinance institutions so that contract financing salam can be accommodated very well. Implications: It is hoped that this research will have an impact in formulating contract models salam which so far cannot be implemented in sharia banking.
References
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Majid, R., & Sukmana, R. (2023). Designing a Waqf-Based Agricultural Financing Model. Journal of Islamic Monetary Economics and Finance, 9(3), 443–464. https://doi.org/10.21098/jimf.v9i3.1686
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Ningsih, Wiwik Fitria, Wadayati, S. M. (2016). Modification Finance of Salam the Implication for Salam Accounting Treatment in Indonesia. Procedia - Social and Behavioral Sciences, 219, 528–533. https://doi.org/10.1016/j.sbspro.2016.05.030
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Parveen, P. Z. (2022). Agriculture Financing Through Bay Salam In Islamic Banking Institutions : Theory And Practice. 107–138.
Puspitasari, D. (2023). Problematics of Mudharabah Financing at PT BPRS Aman Syariah Lampung. International Journal of Islamic Economics, 4(02), 159. https://doi.org/10.32332/ijie.v4i02.6074
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Umah, K. A., Luthfi, F., & Widiastuti, T. (2018). S3 (Sale Salam System) : Optimalisasi Akad Salam Oleh Perbankan Syariah Dalam Mengatasi Tallaqi Rukban Pada Komuditas Pertanian (Studi Kasus Petani Di Desa Ngandong Yogyakarta). Jurnal Mebis (Manajemen Dan Bisnis), 3(1), 48–58. https://doi.org/10.33005/mebis.v3i1.23
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Ahmed, U., & Fida, B. A. (2020). Investigating determinants of bay’ salam financing product for the agricultural sector in the Sultanate of Oman. International Journal of Islamic Thought, 18, 121–130. https://doi.org/10.24035/IJIT.18.2020.187
Anwar, A. Z., Susilo, E., Rohman, F., Santosa, P. B., & Gunanto, E. Y. A. (2019). Integrated financing model in Islamic microfinance institutions for agriculture and fisheries sector. Investment Management and Financial Innovations, 16(4), 303–314. https://doi.org/10.21511/imfi.16(4).2019.26
Anwer, Z. (2020). Salam for import operations: mitigating commodity macro risk. Journal of Islamic Accounting and Business Research, 11(8), 1497–1514. https://doi.org/10.1108/JIABR-09-2018-0142
Ashath Muneeza, Nik Nurul Atiqah Nik Yusuf, R. H. (2011). The possibility of application of salam in the Malaysian Islamic banking system. Humanomics, 27(2), 138–147. https://doi.org/10.1108/08288661111135135
Askari, H. (2019). Islamicity Indices: A Moral Compass for Reform and Effective Institutions. International Journal of Islamic Economics, 1(01), 1. https://doi.org/10.32332/ijie.v1i01.1574
Ehsan, A., & Shahzad, M. A. (2015). Bay Salam: A Proposed Model for Shari’ah Compliant Agriculture Financing. Business & Economic Review, 7(1), 67–80. https://doi.org/10.22547/ber/7.1.4
Fadhli, A. (2016). Tinjauan Hukum Islam Terhadap Penerapan Akad As-Salam dalam Transaksi E-Commerce. Mazahib, 15(1), 1–19. https://doi.org/10.21093/mj.v15i1.589
Hossain, I., Muhammad, A. D., Jibril, B. T., & Kaitibie, S. (2019). Support for smallholder farmers through Islamic instruments: The case of Bangladesh and lessons for Nigeria. International Journal of Islamic and Middle Eastern Finance and Management, 12(2), 154–168. https://doi.org/10.1108/IMEFM-11-2018-0371
Hotman, H., Sugeng, A., Triwibowo, A., & Alimuddin, A. (2023). Control Strategy in the Fight Again Internal Fraud (PT BPRS Kotabumi KC Bandar Lampung). Islamic Economics Journal, 9(1), 67–82. https://doi.org/10.21111/IEJ.V9I1.9569
Hudaifah, A., Tutuko, B., & Tjiptohadi, S. (2019). The Implementation of Salam-Contract for Agriculture Financing Through Islamic-Corporate Social Responsibility (Case Study of Paddy Farmers in Tuban Regency Indonesia). Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 11(2), 223–246. https://doi.org/10.15408/aiq.v11i2.10933
Hussain, I., & Saqib, L. (2017). Trade-based transactions in Islamic commercial law and their role in the development of the rural agriculture sector in khyber pakhtunkhwa (proposed Islamic financing models). Hamdard Islamicus, 40(3), 83–115.
Isahak, M. S., Alia Nor Azman, N. F., Zaini, A. F., Shaari, N. S., Elvis, E., & Husain, M. I. (2023). Factors Influencing the Low Demand for Salam Financing Contracts in Indonesia – Concept Paper. Accounting and Finance Research, 12(2), 17. https://doi.org/10.5430/afr.v12n2p17
Kaleem, A., & Ahmad, S. (2010). Bankers ’ perception towards Bai Salam method for agriculture financing in Pakistan. Journal of Financial Services Marketing, 15(3), 215–227. https://doi.org/10.1057/fsm.2010.18
Kaleem, A., & Wajid, R. A. (2009). Application of Islamic banking instrument (Bai Salam) for agriculture financing in Pakistan. British Food Journal, 111(3), 275–292. https://doi.org/10.1108/00070700910941471
Khamis, F. M. (2021). Constructing Indicators For Islamic Financial Inclusion. International Journal of Islamic Economics, 3(2), 101. https://doi.org/10.32332/ijie.v3i2.3720
Kurniati, K., Sunuwati, Amiruddin, M. M., & Syatar, A. (2021). Bay Al Salam As Financing Alternative During Pandemic Outbreak : a Proposal To Indonesia. Academy of Entrepreneurship Journal, 27(5), 2686.
Lotto, L. S., Miles, M. B., & Huberman, A. M. (1986). Qualitative Data Analysis: A Sourcebook of New Methods. Educational Evaluation and Policy Analysis, 8(3), 329. https://doi.org/10.2307/1163741
Lubis, D., Puspitasari, D., & Hasanah, Q. (2022). Determinant Islamic Banking Financing during COVID-19 Pandemic. International Journal of Islamic Economics, 4(May 2020), 19–33.
Majid, R., & Sukmana, R. (2023). Designing a Waqf-Based Agricultural Financing Model. Journal of Islamic Monetary Economics and Finance, 9(3), 443–464. https://doi.org/10.21098/jimf.v9i3.1686
Miles, M. B., & Huberman, A. M. (1984). Drawing Valid Meaning from Qualitative Data: Toward a Shared Craft. Educational Researcher, 13(5), 20–30. https://doi.org/10.3102/0013189X013005020
Mulyany, R., Indriani, M., & Indayani, I. (2022a). Salam fi nancing : from common local issues to a potential international framework. International Journal of Islamic and Middle Eastern Finance and Management, 15(1), 203–217. https://doi.org/10.1108/IMEFM-01-2020-0008
Mulyany, R., Indriani, M., & Indayani, I. (2022b). Salam financing: from common local issues to a potential international framework. International Journal of Islamic and Middle Eastern Finance and Management, 15(1), 203–217. https://doi.org/10.1108/IMEFM-01-2020-0008
Muneeza, A. (2020). The Potential of Fintech in Enhancing the Use of Salam Contract in Islamic Banking. Interantional Journal of Islamic Economics and Finance, 3(July), 305–334.
Ningsih, Wiwik Fitria, Wadayati, S. M. (2016). Modification Finance of Salam the Implication for Salam Accounting Treatment in Indonesia. Procedia - Social and Behavioral Sciences, 219, 528–533. https://doi.org/10.1016/j.sbspro.2016.05.030
Ningsih, W. F., & Wardayati, S. M. (2016). Modification Finance of Salam and the Implications for Salam Accounting Treatment in Indonesia. Procedia - Social and Behavioral Sciences, 219, 528–533. https://doi.org/10.1016/j.sbspro.2016.05.030
Nomani, A., & Azam, M. K. (2020). Sharīʿah compliant working capital financing_ a case-study of Indian sugar industry. Journal of Islamic Accounting and Business Research, 11(3), 674–693. https://doi.org/10.1108/JIABR-09-2016-0098
Parveen, P. Z. (2022). Agriculture Financing Through Bay Salam In Islamic Banking Institutions : Theory And Practice. 107–138.
Puspitasari, D. (2023). Problematics of Mudharabah Financing at PT BPRS Aman Syariah Lampung. International Journal of Islamic Economics, 4(02), 159. https://doi.org/10.32332/ijie.v4i02.6074
Renz, S. M., Carrington, J. M., & Badger, T. A. (2018). Two Strategies for Qualitative Content Analysis: An Intramethod Approach to Triangulation. Qualitative Health Research, 28(5), 824–831. https://doi.org/10.1177/1049732317753586
Saiti, B., Afghan, M., & Noordin, N. H. (2018). Financing agricultural activities in Afghanistan: a proposed salam-based crowdfunding structure. ISRA International Journal of Islamic Finance, 10(1), 52–61. https://doi.org/10.1108/ijif-09-2017-0029
Saprida, S. (2018). Akad Salam Dalam Transaksi Jual Beli. Mizan: Journal of Islamic Law, 4(1), 121–130. https://doi.org/10.32507/mizan.v4i1.177
Shelton, W. (2015). Empirical Methods for Bioethics: A Primer Advances in Bioethics. Emerald Group Publishing Limited, 11, 39–62.
Umah, K. A., Luthfi, F., & Widiastuti, T. (2018). S3 (Sale Salam System) : Optimalisasi Akad Salam Oleh Perbankan Syariah Dalam Mengatasi Tallaqi Rukban Pada Komuditas Pertanian (Studi Kasus Petani Di Desa Ngandong Yogyakarta). Jurnal Mebis (Manajemen Dan Bisnis), 3(1), 48–58. https://doi.org/10.33005/mebis.v3i1.23
Waluyo, B., & Rozza, S. (2020). A Model for Minimizing Problems in Salam Financing At Islamic Banks in Indonesia. International Review of Management and Marketing, 10(2), 1–7. https://doi.org/10.32479/irmm.9149
Published
2024-05-15
How to Cite
PRAYOGI, Bagus; RAMADHAN, Daffa Aulia.
Sharia Banking Contract Model: Alternative Financing For the Agricultural Sector in Indonesia.
International Journal of Islamic Economics, [S.l.], v. 6, n. 01, p. 67-78, may 2024.
ISSN 2686-2166.
Available at: <https://e-journal.ejournal.metrouniv.ac.id/IJIE/article/view/8829>. Date accessed: 02 july 2024.
doi: https://doi.org/10.32332/ijie.v6i01.8829.
Section
Articles
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