SHARIAH FINANCING FOR FARMERS POVERTY REDUCTION

Abstract

The agricultural’s sector issues remains important, both from  strategic and pragmatic sides. From the strategic side, the contribution to GDP and labor absorption in this sector is still significant. While at the pragmatic side, contrary to earlier, the poverty rate of economic actors at the sector did not experience significant improvement. Farmer’s poverty alleviation efforts, as if to see a thick wall. In the era of oil boom of the past, subsidies be the pa­radigm taken by government. However, because of  government budget con­straints, and also the absence of the private sectors role, the efforts being failed. Shariah banking have a great obligation to face this huge potential demand. Because of poor farmers was a part of the largest Islamic commu­nity itself and the maqasid Shari'ah philosophy put the protection of man­kind from poverty and indigence as one of the main objectives. Nevertheless, major barriers to technical and economic, made sharia banking still not pre­sent in those efforts. Need a new paradigm which using a comprehensive ap­proach and involve actively participation of all parties to realize those goals. To that end, this paper will try to offer  that new paradigm.