Encourage Sharia Economics, IPB Students Won the 1st National Essay Competition

Encourage Sharia Economics, IPB Students Won the 1st National Essay Competition

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Adi Pujianto, the student of Bogor Agricultural University (IPB) won 1st Winner of 7th Annual Focel (FORKES Celebration) National Competition of Alauddin Makassar State Islamic University (UIN). This 7th Forkeis Celebration is the annual program to commemorate  the anniversary of Forum for Islamic Economic Studies (FORKES) of UIN Alauddin, Makasar. The series of the annual event includes seminar and essay writing contest. This event aims to revive the sharia economic in Indonesia.

"With reference to the literature review, FORKES which is  organized by UIN Alauddin Makassar is to stimulate the sharia economy development in Indonesia, especially in Islamic banking. It was targeted that the growth of sharia banking assets in 2010 would be more than 5 percent, but until 2017 it has not reached 5 percent of the market share or assets of total assets from banks in Indonesia. To stimulate the development of sharia economy, in addition to promote the Indonesian banking, the insurance and other non-bank Islamic financial institutions,  then UIN Alauddin, Makasar, organizes FORKES, "said Adi.

The student of Economics and Management of Faculty of Economics and Management of Bogor Agricultural University (FEM IPB) tried to promote Sociopreneur   in his article on “Solam” (Sociopreneur Akad Salam) dan LKS (Lembaga Keuangan Syariah) dalam Jual Beli Salam sebagai Alternatif Pemberdayaan dan Peningkatan Usaha Masyarakat Tani. er entitled Integration ("Solam" (Sociopreneur Akad Salam) and LKS (Sharia Financial Institution) in Security Exchange  Program as an Alternative of Empowerment and Improvement of Community Business for Farmer).

Solam is a social entrepreneur that empowers and simultaneously purchases farmers' products using Akad Salam which is then distributed and marketed to consumers. Solam is a social entrepreneur that is formed from a combination of sociopreneur concepts and Akad Salam  which are widely applied by sharia financial institutions especially BMT (Baitul Maal Wa Tamwil) and sharia banking. In the market Solam runs its business, as well as assisting  farmers to  empower and guide  them in doing their business.

"Solam itself is more than the sociopreneur that puts forward the social aspect in this case tends to the empowerment of society. While akad salam is one of the products of  syariah banking and non-bank financial institutions that focus more on financing the agricultural sector. Unfortunately, because the agricultural sector has a big risk, therefore  until now the implementation of such akad salam method by Indonesian Islamic banks  is still zero as the banks afraid to have big problems caused by such method. Though sharia banking systems or non-bank financial institutions are the real sector that is highly anticipated to help the developing of the economy of society, "said Adi.

Student who is in the final year gave an example for akad salam. For example, a  bank orders agricultural products, 20 tons of corns, to farmers. The order is put earlier prior the corn start of to be harvested. "I order 20 tons of corn, but before an advance payment is made to a producer, you  must agree to comply with qualification we need. If you can’t meet the qualification as I ordered then you have to give us compensation." Such transactions have  a lot of the risks, therefore farmers as they thought that akad salam is really difficult to  implement, so far no akad salam system have been practiced. "I have an idea how to minimize the risk. The sociopreneur will be a third party between farmers and financial institutions, the sociopreneur utilize salam contract. Sociopreneur here empowers farmers to produce good quality agricultural products to meet the requirement stated by a bank. In addition, the students will also help farmers to minimize risk of failure to produce the agricultural products, "said Adi.

Adi further explained about his idea. According to him, there will be two steps to implement akad salam, first between the banking or BMT to sociopreneur in the form of goods and sociopreneur later to the community. Sociopreneurs takes the advantage of the margins alone as, but it must be more beneficial for farmers who produces the crops. Similar to ijon, the financial institution orders agricultural products and farmers mortgages their agricultural products before they are harvested. Here in the Ijon system, the quality of the goods is not clear, but in the  akad salam the specifications of the products are stated clearly in the agreement. Adi said, Ijon systm must not be implemented by the communities as it is  gharar (not clear). In the case of  sociopreneur, agreement must be made to provide feedbacks  of banking. "In this case, the sociopreneur must give feedbacks to the financial institution informing that the akad salam is developed.  Please be informed that akad salam has neven been applied previously, the existence of the sociopreneur is expected to promote and develop akad salam," he said.

Of the hundreds of essays submitted to the Organizing Committee, seven out of which were  selected to the seven best essay, among those seven essays was from IPB and was elected to be the best (Rank I). (Wied)