The Implementation of Salam-Contract For Agriculture Financing Through Islamic-Corporate Social Responsibility (Case Study of Paddy Farmers in Tuban Regency Indonesia)

Ahmad Hudaifah1, Bambang Tutuko2, Tjiptohadi Sawarjuwono3

This research is aimed at discovering a stable fnancial scheming formula or model that would be compatible with the natural characteristics of a paddy farming cycle in Tuban. Te qualitative research employs the use of an active participatory community through the means of a focus group discussion, an in-depth interview and face to face interviews with respective stakeholders and key informants. Te Salam contract, which is highly benefcial is a prospective fnancial scheme that terminates the long business chain found in most businesses in Indonesia. Te Corporate Social Responsibility which is managed through the Syariah approach (I-CSR) from a company, can become the solution to bridge the gap found in the implementation of funds for a Salam contract. Te Salam contract applicability is dependent on the Islamic farmer cooperatives (BMT), a unit of joint venture organization serving as the key players in the execution of the function of a paddy warehouse-trading agent and direct fnancing to farmers. Strong support also comes from the zakat, infāq, and shodaqoh institution (LAZ) whose role is educating and encouraging the paddy farmers’ skills and competency, especially to enable them access end-user markets using the aid of information technology.
Keywords: Salam, I-CSR, Cooperative, Farmers

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