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Enhancing The Local Wisdom of Indonesian Sukuk:

Financing The Cocoa Farmers Through Sukuk Linkage Program


(Case Study Gapoktan Guyub Santoso Blitar)1
By
Rusli Simanjuntak*
(simanjuntak.rusli@gmail.com)
&
Khairunnisa Musari**
(khairunnisamusari@yahoo.com)
ABSTRACT
As one of the plantation commodities that are important to the national economy, the potency of cocoa in
Indonesia has not been optimally explored. Lack of working capital is still a classic problem. Like most other
commodities, not many banks, including the Islamic banks, eager to finance the cocoa commodities.
Gapoktan Guyub Santoso, an association of 16,000 members of cocoa farmers group in Blitar, East Java,
Indonesia, has established a cooperative entity and then issuing investment certificates based on mudharabah
contract. In the term of Islamic economics and finance, the investment certificates issued known as sukuk.
This study attemps to discuss the critical aspects of the practice of investment certificate issuance as a small
micro financing instruments to provide working capital for cocoa farmers by Gapoktan Guyub Santoso. In order to
avoid the interest of bank loans or contract that does not suit the needs and capabilities of its member, Gapoktan
Guyub Santoso has been able to mobilize the working capital funds by becoming land and buildings held as
underlying asset of the investment certificates.
Finally, this study proves that sukuk has practiced by association of farmers group in Indonesia as a local
wisdom to find alternative financing the working capital for farmers. Sukuk has become a micro financing
instrument for their community. In order to reinforce the microfinance for farmers, this study proposes the models of
sukuk linkage program between Islamic banks and Gapoktan. Sukuk is presented in order to convert the debt
financing orientation into equity financing orientation. The last, this study indicates that sukuk has ability to be a
bridge linking the financial sector and real sector and can be positioned to be a tool to manage the lack and excess of
liquidity.
Keywords: Islamic microfinance, linkage program, local wisdom, cocoa, farmer, sukuk, Islamic bank

* PhD Student of Islamic Economic and Finance (IEF) at Trisakti University; Chairman of Risk Management
International (RMI)
** Lecturer at STAIN Jember; Researcher for Islamic Finance at Risk Management International (RMI)

A paper has presented at The International Conference on Islamic Economic Studies (ICIES)
Strengthening the Islamic Economic Institution toward the Global Economy Market of IAIN Surakarta at Lor Inn
Hotel, Solo, 22 October 2014.

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