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PROSIDING Seminar Nasional dan Call For Papers Ekonomi Syariah“Indonesia Sebagai Kiblat Ekonomi Syariah”
2. Through the cash awqaf, endowment as- sets in the form of empty lands could be-
gin with the construction of buildings used or processed for agricultural land,
3. In turn, Muslims can be more independent in the developing world without depend-
ing on education in the state education bud- get is the longer limited.
The issue of awqaf in Indonesia held by the Indonesian AwqafInstitution IAB, as man-
dated Law41 of 2003 to manage awqaf in In- donesia more professional and modern.IAB is
as a special institution that has the principal role of coordinating to Nazhir awqaf property
manager so that the awqaf property can be developed and managed productively.In this
case, the discussion is focused on the manage- ment of cash awqaf productive aspects of agri-
culture, according to the government’s program for large-scale food self-sufficiency.
3.2 Condition of Indonesian Agricultural Sector
Agriculture or agricultural sector is a sec- tor which is very important in the development
of Indonesia, as the data from the Bulletin the following GDP, agriculture is a contributor to
the Gross Domestic Product of Indonesia’s sec- ond largest.
Indonesia’s development vision is to achieve Indonesia Year 2015-2019 sovereign,
independent, and personality based on mutual cooperation
9
. As one of the efforts or programs launched by the government in order to achieve
an independent community is self-sufficiency, with applicable policies.At least, Indonesia is
expected to bear the title of the country self- sufficient back who once pinned.Staples such
as rice, corn, soybean, and the like are no longer imported from neighboring countries, Vietnam
and Thailand, but can be independently with its own products.
Basically self-sufficiency is a program that has been launched by the government since
the first couple of years ago.Still, these pro- grams have not yielded optimal results.At the
beginning of the President’s leadership, JokoWidodo, the increasing of fuel price be-
fore then finally decreasing again, is expected to boost self-sufficiency five 5 strategic com-
modities.
Table 3.1 Contributions of GDP every business field against Indonesian GDP 2012-2013
Source: Agricultural Sector GDP Bulletin Volume 12, Number 2, June 2013 Center for Data and Information System Ministry of Agriculture
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In the National Working Meeting on Ag- ricultural Development In 2015, East Kali-
mantan Provincial Livestock Office,stated that the strategies undertaken to achieve success in
improving food commodity production towards self-sufficiency, i.e., with an increase in pro-
ductivity, the expansion of planting area, pro- duction safety, and empowerment of agricul-
tural institutions and financial support farming.
The issues and strategies to achieve food self-sufficiency targets, among others:
• Conversion of agricultural land to non-ag-
ricultural of 100-110 thousand per year, •
Irrigation in the state of network infrastruc- ture is damaged 3.3 million ha 49.9,
• The number of farm households fell, from
31 million farm households in 2003 to 26 million households by 2013,
• Level loss and post-harvest crop quite high,
10.82, •
Climate change resulting in drought, floods, and pests,
• Farmers’ access to finance is limited,
• Institutional farmers and agriculture is not
functioning optimally, •
Not optimal coordination of relevant agen- cies.
Ministry of Agriculture will conduct a program to achieve self-sufficiency in rice,
corn, and soybeans through the rehabilitation of irrigation networks 1 million ha per year and
the provision of seeds, agricultural machinery, fertilizers and extension, as well as irrigation.
Operational measures the achievement of self-sufficiency in rice, corn, and soybeans, as
well as increased production of sugar and meat Rice: Rehab primary and secondary irri-
gation network 1 million hectares by the Min- istry of Public Works and Public Housing; re-
habilitation of tertiary irrigation network 1.46 million ha; subsidized rice seeds, fertilizer, trac-
tors R2, R4 tractors, agricultural machinery postharvest.
Corn: Hybrid seeds, fertilizers, develop- ment dryer, mini feed plant growth in produc-
tion centers, local maize increased absorption by the feed industry.
Soybeans: System development of im- proved seed, fertilizer, and industrial related to
tofu, tempe, and fodder. Sugar: Provision of seed cane, unload-
ing and care ratoon, sugar mill revitalization, development investment.
Meat: Increased production and distribu- tion of frozen semen, snapping lust with PGF2
hormones, artificial insemination AI and the prohibition of productive female cutting.
Capital is a very important aspect in the achievement of self-sufficiency, in addition to
the above strategies.Both will be mutually re- inforcing if equally optimized.
It would be a paradox when the strategy undertaken for the realization of self-suffi-
ciency is only focused on the expansion of planted area, production safety, as well as the
empowerment of agricultural institutions with- out coupled with the optimization of the financ-
ing side.Islamic Financial Institutions that ex- ist today still has many obstacles to derail the
current credit to farmers, both in terms of lack of socialization and the procedure is still diffi-
cult for farmers, as well as the determination of the time limit capital.Similarly, based on data
from Bank Indonesia, for the years 2004-2006, the agricultural sector or agriculture is not the
largest sector in the budget allocation of credit.
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Utilization of cash awqaf in this case can promote the establishment of self-sufficiency
of capital, in addition to credit derailed from Islamic Financial Institutions. By different
mechanisms, Islamic Financial Institutions can distribute endowment funds that accrue to farm-
ers or farmer groups.This cash awqaf specifi- cally earmarked for agribusiness or agricultural
sector, which is managed by farmers.
3.3 Cash Awqaf Utilization for Agricultural Sector to Support Food Self-Sufficiency
in Indonesia Utilization of productive cash awqaf op-
timally for agriculture or agriculture sector will greatly help achieve self-sufficiency of food in
Indonesia.In addition, aspects of mutual coop- eration as a vision of development in Indone-
sia in 2015-2019 can also be realized, because endowments is a part form of worship to Allah
SubhanahuWaTa’ala, is a means to build the
social sense between fellow human beings. The difference between the productive
cash awqaf with their credit in which each agribusiness sector is allocated for the period
of the capital, where the earning cash awqaf was not limited.If the farmer will go to Islamic
Financial Institutions IFI to obtain credit, then earning cash awqaf will freely handed over to
farmers or farmer groups to be managed re- main in control.Another difference is in the
distribution ratio profit.If the system IFI credit capital as capital owners, who then will obtain
a percentage of the profits as agreed to farm- ers manager, then the cash awqaf system
productiveIFI only act as an intermediary betweenwakif people who give awqaf
andNazhir awqaf property manager.The re- sults or profits from the management of the
endowment fund will wherewithal to those entitled to receive, as expected wakif.
Table 3.2 Allocation of Loans by Sector, Year 2006-2008 Trillion
Sector Years
2004 2005
2006 Agriculture
33.14 37.17
43.21
Mining
7.81 8.12
11.15
Industry
144.91 171.28
180.28
Electricity, gas, and water
5.98 5.36
5.22
Construction
19.97 26.98
33.82
Trade, restaurants and hotels
113.07 135.83
156.93
Transportation, warehousing, and communications
17.66 19.82
26.41
Business services
56.35 72.62
74.99
Social services community
8.04 10.02
10.28
Etc
152.49 208.37
224.73
Source: Tambunan 2008, Data Bank of Indonesia
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