Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South Sumatera

The agricultural sector continues to be the primary driver of rural economies in Indonesia. Despite its vital role, the rural agricultural sector often faces serious challenges in terms of adequate financing. This study examines the implementation of the syirkah agreement as an alternative financing...

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Main Authors: Apri Engga, Budiyoko, Abdulhakim Madiyoh, Whisnu Febry Afrianto
Format: Article
Language:English
Published: Universitas Airlangga 2023-12-01
Series:Journal of Halal Product and Research
Online Access:https://e-journal.unair.ac.id/JHPR/article/view/50966
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author Apri Engga
Budiyoko
Abdulhakim Madiyoh
Whisnu Febry Afrianto
author_facet Apri Engga
Budiyoko
Abdulhakim Madiyoh
Whisnu Febry Afrianto
author_sort Apri Engga
collection DOAJ
description The agricultural sector continues to be the primary driver of rural economies in Indonesia. Despite its vital role, the rural agricultural sector often faces serious challenges in terms of adequate financing. This study examines the implementation of the syirkah agreement as an alternative financing model in the agricultural sector to enhance rural economies. Using a phenomenological approach, this research involves in-depth interviews and direct observations regarding the application of the syirkah agreement in financing a rice milling unit managed by the Farmers' Group Association (Gapoktan) in Pandan Village, Tanah Abang District, Penukal Abab Lematang Ilir Regency, South Sumatra. The research findings indicate that the application of the syirkah agreement in agricultural financing has yielded significant positive impacts. It enables farmers to have easier access to capital and necessary resources for productivity enhancement while promoting active farmer participation in their agricultural business decision-making. These results underscore the crucial role of the syirkah agreement in creating a sustainable and inclusive rural economy, in line with the principles of economic justice in sharia law.
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id doaj-art-9b5e37a1b3f444bfbf5c40e50613b0a3
institution Kabale University
issn 2654-9409
2654-9778
language English
publishDate 2023-12-01
publisher Universitas Airlangga
record_format Article
series Journal of Halal Product and Research
spelling doaj-art-9b5e37a1b3f444bfbf5c40e50613b0a32024-12-17T03:30:01ZengUniversitas AirlanggaJournal of Halal Product and Research2654-94092654-97782023-12-016213113710.20473/jhpr.vol.6-issue.2.131-13749124Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South SumateraApri Engga0Budiyoko1Abdulhakim Madiyoh2Whisnu Febry Afrianto3Department of Agriculture, Penukal Abab Lematang Ilir Regency, South Sumatera, IndonesiaFaculty of Agriculture, Jenderal Soedirman UniversityFaculty of Economics and Business Administration, Thaksin University, ThailandEcosystem and Biodiversity (Ecosbio)The agricultural sector continues to be the primary driver of rural economies in Indonesia. Despite its vital role, the rural agricultural sector often faces serious challenges in terms of adequate financing. This study examines the implementation of the syirkah agreement as an alternative financing model in the agricultural sector to enhance rural economies. Using a phenomenological approach, this research involves in-depth interviews and direct observations regarding the application of the syirkah agreement in financing a rice milling unit managed by the Farmers' Group Association (Gapoktan) in Pandan Village, Tanah Abang District, Penukal Abab Lematang Ilir Regency, South Sumatra. The research findings indicate that the application of the syirkah agreement in agricultural financing has yielded significant positive impacts. It enables farmers to have easier access to capital and necessary resources for productivity enhancement while promoting active farmer participation in their agricultural business decision-making. These results underscore the crucial role of the syirkah agreement in creating a sustainable and inclusive rural economy, in line with the principles of economic justice in sharia law.https://e-journal.unair.ac.id/JHPR/article/view/50966
spellingShingle Apri Engga
Budiyoko
Abdulhakim Madiyoh
Whisnu Febry Afrianto
Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South Sumatera
Journal of Halal Product and Research
title Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South Sumatera
title_full Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South Sumatera
title_fullStr Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South Sumatera
title_full_unstemmed Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South Sumatera
title_short Implementation of syirkah agreements in agricultural financing for enhancing the rural economy: insights from South Sumatera
title_sort implementation of syirkah agreements in agricultural financing for enhancing the rural economy insights from south sumatera
url https://e-journal.unair.ac.id/JHPR/article/view/50966
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AT abdulhakimmadiyoh implementationofsyirkahagreementsinagriculturalfinancingforenhancingtheruraleconomyinsightsfromsouthsumatera
AT whisnufebryafrianto implementationofsyirkahagreementsinagriculturalfinancingforenhancingtheruraleconomyinsightsfromsouthsumatera