PROSPECT OF SHARIA FINANCING IN AGRICULTURE SECTOR

By: Rio Ramadhian

TUTOR IKHWAN BRAIN STORMING TEAM

Written as the Material to Join Scientific Paper Competition

in Sharia Economics Activities 3 (SEHATI 3)

Agriculture sector shows important contribution in economic structure of South Sumatera structural. So that it is reasonable to give by attention to agriculture sector. Remembering that this sector becomes the main hope for most rural society is life. In supporting South Sumatera as a Nastional Food Barn. But RGDP South Sumatera’s sub sector was in decreasing condition for the last three years. One main problem is the weak in capitalization. Although the government has tried to cope that problem by releasing some credit programs for agriculture sector. The credit program shows the unsatisfied result, even pile up new problem like the increasing of farmer debt and non performing loan. Based on that matter it is need to find agriculture based alternative system, one of them is by sharia skim. This article has a purpose to give some introduction about sharia financing and prospect implementation in order to support South Sumatra food barn. Result of this research show that sharia financing have great opportunity to make financial in agriculture sector become strength ness.

Regional decentralization era which has been run in several years strive for government of south Sumatra to have big participation in order to explore their natural resources to economic development regional sector’s increases, agriculture sector is the big one of top sector in this region and this sector had been a great income to save big amount low line of suburban peoples.

Generally agriculture sector shows the significant contribution in economical structure in South Sumatra because in fact agriculture sector give a good condition (table 1.1), although RGDP of sub sector has been declined since 2002 (7.02%), in 2003 (6.75%) and in 2004 (6.29%). (Setijawan and Siregar, 2003).

Table 1. Structure of Economy South Sumatra at 2005 up to 3^rd Quarterly of 2006

	2005				2006
Sector	I	II	III	IV	I	II	III
1. Agriculture	18.70	18.92	19.98	17.06	15.17	17.45	20.05
2. Mining	27.82	28.19	28.13	28.68	31.47	28.83	27.03
3. Manufacturing	21.29	20.85	20.31	20.67	23.03	22.40	21.43
4. Electricity	0.61	0.65	0.64	0.62	0.53	0.54	0.54
5. Built	6.28	6.36	6.69	7.48	5.72	5.89	5.92
6. Trading	9.44	9.28	9.11	8.76	10.64	11.14	11.32
7. Transportation	4.45	4.39	4.25	5.18	3.88	3.96	3.97
8. Financial	3.51	3.54	3.49	3.39	3.20	3.30	3.18
9. Services	7.90	7.82	7.40	7.37	6.36	6.48	6.56
Total	100.00	100.00	100.00	100.00	100.00	100.00	100.00

Source: Central of Statistic Department South Sumatra 2006

One of obstacle is investment and financial, actually local government has been solved that problem with compose any credit program for agriculture sector, this program which used interest system showed dissatisfaction result, in fact created new problem such as the payable of farmer become bigger and insufficient fund to pay that payable.

Base on this fact to solve this problem financing and investment so needed, one of them is with sharia skim. Different with credit model, sharia financing free of interest, and profit proportion base on dividend after all transaction ended.

South Sumatra As the Food Barn

South Sumatra as the food barn have wide meaning that is South Sumatra as the region which produce and supply the food resave as soon as other agriculture crops in fresh formed in spite of agro industrial product, in where people not in standard condition of food needed, but rather have a buying effort and easily to get food access until have the food strength ness which have a good position and get proper income in order to fulfill other needs, it is so explicit that in this explanation include any efforts of economic exertion that done by government and agriculture community in wide scope in order to be able to prepare agriculture crop, so that the farmer have buying efforts that enough from their income so can get food access, all at once to have the more than standard income that purpose is to improve their economical life in the future.