Journal of Islamic Monetary Economics and Finance
Vol 5 No 3 (2019)

DEVELOPING FINTECH AND ISLAMIC FINANCE PRODUCTS IN AGRICULTURAL VALUE CHAIN

R. Gratiyana Ningrat (Universitas Indonesia, Indonesia)
Mohamad Soleh Nurzaman (Universitas Indonesia, Indonesia)



Article Info

Publish Date
01 Nov 2019

Abstract

To meet the global population needs, it is projected to at least eighty billion dollars in investment per year to support the food security until 2050. It is widely known that the agriculture financing growth has stalled due to many reasons. Islamic finance has potential to spur the growth of agriculture financing to promote global food security. Meanwhile, agriculture in Indonesia is still nowhere to its potential. It is hindered by an inefficient and underdeveloped downstream segment, low access to financial and technology. This is a huge opportunity for Islamic finance in helping to bridge the gap through value chain finance approach as one of the strategies to reduce risk and give socio-economic spill-over effect along the chain. Islamic finance can promote agricultures sustainability and a more efficient process with FinTech enabled platform. The multiple case study proposes a sharia compliant community-based financing model in agricultural value chain practice with FinTech enabled platform. The result is this model integrating all actors from different market segmentation (landowners, suppliers, farmers, brokers, retailers, investor) into an Islamic value chain financing platform. However, determining buying intention, partnership establishment, and technology infrastructure are pivotal for its future implementation.

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Journal Info

Abbrev

JIMF

Publisher

Subject

Economics, Econometrics & Finance

Description

JIMF is an international peer-reviewed and scientific journal which is published quarterly by Bank Indonesia Institute. JIMF is a type of scientific journal (e-journal) in Islamic economics, monetary, and finance. By involving a large research communiy in an innovative public peer-review process, ...