AGRICULTURAL FINANCING IN EAST JAVA: THE ROLE OF CROWD FUNDING
| Main Authors: | Thas Thaker, Hassanudin Mohd, Khaliq, Ahmad, Sakaran, K. Chandra |
|---|---|
| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
STES Islamic Village
, 2019
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| Subjects: | |
| Online Access: |
http://jurnal.stesislamicvillage.ac.id/index.php/JURNAL/article/view/82 http://jurnal.stesislamicvillage.ac.id/index.php/JURNAL/article/view/82/63 |
Daftar Isi:
- Literature evidence shows that the agriculture sector in East Java has been transformed in the last 5 to 10 years. The contribution of the agricultural sector to. East Java GRDP in 2008 was 16.55% and went down to 13.75% in 2015. This statistic shows that the contribution of the agriculture sector has regressed compared with another economic sector such as manufacturing sector. The credit composition of this economic sector was at 2.86% in 2011 and got down to 2.79% in 2015. One common view that linked to shrinking in credit composition is due to lacking credit accessibility in developing agriculture and activities related to agriculture. Given this issue, this paper attempts to propose a viable model of the source of financing to develop agricultural land in East Java which is known as the Integrated Agricultural Land Crowdfunding Model (IALCM). This model is expected to offer farmers in East Java to meet their liquidity constraint. In this model, we include an interesting element called “crowdfunding platform” as a mode of financing. The outcome of this study has implications for the government of Indonesia and lastly, this study also identified several challenges and possible recommendations for the development of agricultural land in East Java.