Article Sidebar

Download
PDF
Statistic
Read Counter : 1475 Download : 1169

Downloads

Download data is not yet available.

Main Article Content

Abstract

The contribution of the agricultural sector towards East Java’s Gross Domestic Product (GDP) in 2008 recorded at 16.55%, however, it shrinks to 13.75% in 2015. This statistic shows the regressed contribution of the agriculture sector in comparison to other economic sectors. One common view that linked to shrinking in credit composition is due to the lack of credit accessibility for the sector. Given this issue, this paper attempts to propose a viable financing model to develop the agricultural sector in East Java known as Integrated Agricultural Land Crowdfunding Model (IALCM) using Islamic financing instruments in form of a crowd funding platform. This model is expected to offer farmers in East Java to meet their liquidity constraints and the Indonesian government to accelerate social entrepreneurship innovation. Lastly, several challenges and conceivable recommendations have been deliberated for the development of the agricultural sector in East Java.

Article Details

License

Copyright (c) 2020 Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish with this journal agree to the following terms:

  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
How to Cite
Mohd Thas Thaker, H., Khaliq, A., Sakaran, K. C., & Mohd Thas Thaker, M. A. (2020). A discourse on the potential of crowdfunding and Islamic finance in the agricultural sector of East Java, Indonesia. Jurnal Ekonomi & Keuangan Islam, 6(1), 10–23. https://doi.org/10.20885/JEKI.vol6.iss1.art2
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Abdullah, A. (2016). Crowdfunding as an emerging fundraising tool: with special reference to the Malaysian regulatory framework. Islam and Civilisational Renewal, (1), 98-119.
  2. Agrawal, A., Catalini, C., & Goldfarb, A. (2013). Some simple economics of crowdfunding. National Bureau of Economic Research (NBER) Working Paper No. w19133.
  3. Agrawal, A., Catalini, C., & Goldfarb, A. (2015). Crowdfunding: geography, social networks, and the timing of investment decisions. Journal of Economics and Management Strategy, 24(2), 253–274. DOI: 10.1111/jems.12093
  4. Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211. DOI: 10.1016/0749-5978(91)90020-T
  5. Allison, T. H., Davis, B. C., Short, J. C., & Webb., J. W. (2015). Crowdfunding in a prosocial microlending environment: examining the role of intrinsic versus extrinsic cues. Entrepreneurship Theory and Practice, 39(1), 53-73. DOI: 10.1111/etap.12108
  6. Asnawi, A., A.A. Amrawaty, & Nirwana. 2018. Mukhabarah as sharia financing model in beef cattle farm entreprise. IOP Conf. Series: Earth and Environmental Science.
  7. Belleflamme, P., Lambert, T., & Schwienbacher, A. (2010). Crowdfunding: an industrial organization perspective. Workshop on Digital Business Models: Understanding Strategies, Held in Paris in June 2010.
  8. Belleflamme, P., Lambert, T., & Schwienbacher, A. (2013). Crowdfunding: tapping the right crowd. Journal of Business Venturing, 29(5), 585-609. DOI: 10.2139/ssrn.1578175
  9. Bruntje, D., & Gajda, O. (2016). Crowdfunding in Europe, state of the art in theory and practice. Switzerland: Springer International Publishing.
  10. Colombo, M. G., Franzoni, C., & Rossi-Lamastra, C. (2015). Internal social capital and the attraction of early contributions in crowdfunding projects. Entrepreneurship Theory and Practice, 39(1), 75-100. DOI: 10.1111/etap.12118
  11. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology, MIS Quarterly, 13(1), 983-1003. DOI: 10.2307/249008
  12. Dusuki, A. W., & Abdullah, N. I. (2007). Why do Malaysian customers patronize Islamic banks? International Journal of Bank Marketing, 25(3), 142-160. DOI: 10.1108/02652320710739850
  13. Erol, C., Kaynak, E. & El-Bdour, R. (1990). Conventional and Islamic banks: patronage behavior of Jordanian customers, International Journal of Bank Marketing, 8(4), 25-35. DOI:10.1108/02652329010004231
  14. Fazlan, S., & Mohammad, A. (2007). The efficiency of Islamic banks: empirical evidence from the MENA and Asian countries Islamic banking sectors. Paper presented at the Fifth International Islamic Finance Conference, September 3-4, Kuala Lumpur.
  15. Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behaviour: an introduction to theory and research. Penn State University Press, US.
  16. Freedman, S., & Jin, G. (2014). The signaling value of online social networks: lessons from peer-to-peer lending. National Bureau of Economic Research (NBER) Working Paper No. 19820, 48 -70.
  17. Gerber, E., Hui, J., & Kuo, P. (2012). Crowdfunding: why people are motivated to post and fund projects on crowdfunding platforms. in computer-supported cooperative work (CSCW) Workshop, 2012.
  18. Gleasure, R., & Feller, J. (2016). Emerging technologies and the democratisation of financial services: A meta triangulation of crowdfunding research. Information and Organization, 26 (4), 101-115. DOI: 10.1016/j.infoandorg.2016.09.001
  19. Gorbatai, A. D., & Nelson, L. (2015). Gender and the language of crowdfunding. Academy of Management Proceedings 1.
  20. Harjanto, J.T. (2011). Precision agriculture toward sustainable food sovereignty. Badan Penyuluhan dan Pengembangan Sumber Daya Manusia Pertanian (BPPSDMP), Ministry of Agriculture, Rep. of Indonesia.
  21. Herzenstein, M., Sonenshein, S., & Dholakia, U. M. (2011). Tell me a good story and I may lend you money: the role of narratives in peer-to-peer lending decisions. Journal of Marketing Research, 48(2), 138-149. DOI:10.1509/jmkr.48.SPL.S138
  22. Hulme, M., & Wright, C. (2006). Internet-based social lending: Past, present and future. Social Futures Observatory.
  23. Ingram, C., Teigland, R., & Vaast, E. (2014). Solving the puzzle of crowdfunding: where technology affordances and institutional entrepreneurship collide. In System Sciences (HICSS), 2014 47th Hawaii International Conference On, IEEE, 4556-4567.
  24. International Organization of Securities Commissions (IOSCO). (2004). Islamic Capital Market Fact-Finding Report, July 2004, p10 available at www.iasplus.com/resource/ioscoislamiccapitalmarkets.pdf (Accessed on 22 Feb 2018).
  25. Kuppuswamy, V., & Bayus, B. L. (2018). Crowdfunding creative ideas: the dynamics of project backers. In H. L. Cumming D., The Economics of Crowdfunding. (pp. 151-182). Cham: Palgrave Macmillan.
  26. Lu, C.-T., Xie, S., Kong, X., & Yu, P. S. (2014). Inferring the impacts of social media on crowdfunding. Proceeding WSDM 14 Proceedings of the 7th ACM international conference on Web search and data mining, 573-582. DOI: 10.1145/2556195.2556251
  27. Marom, D., Robb, A., & Sade, O. (2016). Gender dynamics in crowdfunding (Kickstarter): evidence on entrepreneurs, investors, deals and taste-based discrimination. Social Science Research Network.
  28. Marzban, S., Asutay, M., & Boseli, A. (2014). Shariah-compliant crowdfunding: An efficient framework for entrepreneurship development in Islamic Countries. Paper presented at the Harvard Islamic Finance Forum, Boston, USA.
  29. Meyer, R.L. (2013). Microcredit and agriculture: challenges, successes and prospects. In Microfinance in Developing Countries: Issues, Policies and Performance Evaluation, by Jean-Pierre Gueyie, Ronny Manos and Jacob Yaron, 199-226. London: Palgrave Macmillan, a division of Macmillan Publishers Limited. DOI: 10.1057/9781137301925_10
  30. Mollick, E. R. (2013). The dynamics of crowdfunding: determinants of success and failure. Social Science Research Network, Electronic Journal, 29(1). DOI:10.2139/ssrn.2088298
  31. Mollick, E. R. (2014). The dynamics of crowdfunding: an exploratory study. Journal of Business Venturing, 29(2), 1-16. DOI: 10.1016/j.jbusvent.2013.06.005
  32. Moritz, A., & Block, J. (2016). Crowdfunding: a literature review and research directions. In D. Bruntje, & O. Gajda, Crowdfunding in Europe, State of the Art in Theory and Practice (25-53). Switzerland: Springer International Publishing.
  33. Riethmuller, P. (1999). The Indonesian feed and livestock sector. a statistical overview. In Livestock Industries of Indonesia Prior to the Asian Financial Crisis, by Food and Agriculture Organization of the United Nations (Regional Office for Asia and the Pacific), 107-198. Bangkok: RAP Publication.
  34. Sirajuddin, S.N, Aminawar, M., Amrawaty, A., & Nurlaelah, S. (2015). The application of Tesang sharing system at cattle farm in Indonesia. Proceedings of the 3rd International Seminar on Animal Industry, Bogor, 17-18 September 2015. Bogor: Faculty of Animal Science Bogor Agricultural University.
  35. Suprapto, A. (2002). Land and water resources development in Indonesia. In Investment in Land and Water (Proceedings of the Regional Consultation), by Food and Agriculture Organization of the United Nations. Bangkok: RAP Publication.
  36. Smith, S., Windmeijer, F., & Wright, E. (2014). Peer Effects in Charitable Giving: Evidence from the (Running) Field. The Economic Journal 125 (35), 1053-1071. DOI: 10.1111/ecoj.12114
  37. Thaker, M.A.M. & Thaker, H.M.T (2018). SMEs financing and the potential of crowdfunding. Working paper
  38. The World Bank. (2017). Indonesia GDP Share of Agriculture.
  39. Zhang, Juanjuan, & Liu, P. (2012). Rational herding in microloan markets. Management Science, 58(3), 892–912. DOI: 10.2307/41499528
  40. Zyl, J. Van, H.J.G. Nel, & J. A. Groenewald. (1988). Agricultures contribution to the South African economy. Agricultural Economics Research, Policy and Practice in Southern Africa, 27(2), 1-9. DOI: 10.1080/03031853.1988.9524124