SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
SIJDEB, Vol. 10, No. 1, March 2026

Inclusive Islamic Financing for Advancing Sustainable Intensification among Oil Palm Smallholders

Fajar Budiman (Institut Agama Islam YAPTIP Chadijah Ismail Pasaman Barat)
Hari Candra (Department of Shariah Economic, UIN Imam Bonjol Padang, Indonesia)



Article Info

Publish Date
18 Jun 2026

Abstract

This study develops an Islamic financing model designed for the independent oil palm smallholders in West Pasaman, Indonesia that supports sustainable intensification. Using the Research and Development (R&D) approach of design science, combining survey and interview data from 187 farmers and 15 expert informants respectively. The findings demonstrate that the economically viable sustainable intensification of oil palm smallholders in West Pasaman is challenged by a lack of adequate planting material, poor financing, and limited technical capabilities coupled with fragmented institutional coordination. However, there is considerable potential in the region for oil palm-cattle integration and for intercropping. The study proposes a financing model that integrates Islamic commercial and social finance with technical support andinstitutional collaboration. This study contributes to existing financing literature by asserting that Islamic finance is a source of capital collaboration mechanism for oil palm smallholders to shift toward more sustainable in farming intensification systems.

Copyrights © 2026






Journal Info

Abbrev

SIJDEB

Publisher

Subject

Economics, Econometrics & Finance

Description

The SIJDEB invites manuscripts in the various topics include, but not limited to functional areas of Financial Management, Marketing Management, Human Resource Management, Entrepreneurship, Strategic Management, Public Economics, Monetary Economics, Industrial Economics, Human Resource Economics, ...