Universitas Indonesia Conferences, Asia Pacific Business and Economics Conference

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Application of Salam Analysis as an Alternative to KUR and Ijon: A Case Study in Lampung Selatan Farmers
Arief Firmansyah, ELVIA R SHAUKI

Last modified: 2017-12-22

Abstract


This study aims to compare changes in agricultural funding profit between KUR, Ijon, and Salam due to price changes and harvest failure rate at one harvest time by making profit as an element of comparison as well as comparing its application in the field for each type of agricultural funding. This research was condcuted on agricultural society in Lampung Selatan District (a single case study) by analysing agricultural funding pattern (single Unit Analysis) in the form of People's Business Credit (KUR), Ijon, and Salam (syariah). The result of the study indicates that in the condition of price change, financing method of People's Business Credit (KUR) becomes the best alternative, while for the condition of harvest failure rate, Salam method becomes the best alternative. In terms of execution, Salam gives more stability to agricultural activity. This study offers an agricultural funding system that can improve farmers' welfare, provide assurance of selling price, guarantee the availability of agricultural production equipment, and protection of crop failure.

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