Modification Finance of Salam and the Implications for Salam Accounting Treatment in Indonesia

Ningsih, Wiwik Fitria; Wardayati, Siti Maria

doi:10.1016/j.sbspro.2016.05.030

Cited by 3 publications

(5 citation statements)

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“…Therefore, the norms in muamalah fiqh cannot all be applied in financial institutions because fiqh was formulated in the Middle Ages by previous scholars to meet the needs of daily life, even in the past there were no financial institutions. Furthermore, the a low understanding of Islamic Banking Staff about muamalah fiqh (Ningsih, Wiwik Fitria, Wadayati, 2016).…”

Section: Resultsmentioning

confidence: 99%

“…Banks must also have excellent liquidity reserves. Finally, the a need for a Sharia supervisory board as the main supervisor of business running by Sharia principles (Ningsih & Wardayati, 2016). The Sharia Supervisory Board must be owned by every Islamic bank so that it can directly supervise the actions and activities of Islamic banks in carrying out their products, especially greeting contracts.…”

Section: Financing Development Model Of Salam Contractmentioning

confidence: 99%

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Sharia Banking Contract Model: Alternative Financing For the Agricultural Sector in Indonesia

Prayogi,

Ramadhan

2024

IJIE

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Introduction: In the Islamic conceptualization, banking has a central position as a financing institution for every Muslim that is free from ribawi elements. Sharia banking has made various efforts, such as formulating innovative products to meet credit needs. Unfortunately, these efforts are hampered by several factors, especially the mode of Sharia banking and the limited knowledge of Sharia banking staff regarding fiqh. One of the Sharia banking products that cannot be implemented until now is contracts sallam. Though Salam contract can accommodate credit needs, especially for farmers, promptly. In this case, of course, Islamic banking needs to take a role and take action to meet the needs of these farmers. Objectives: So, this paper aims to elaborate and formulate a contract model salam in banking by considering the problems faced by sharia banks and farmers. The formulation of the problem is how the contract model salam in sharia banking for agricultural financing in Indonesia. Method The approach used in this paper is qualitative with the type of research being the analysis content Results: The result of this research is that a contract salam can be implemented in Sharia banking. However, it requires an integration model from Sharia banking to microfinance institutions so that contract financing salam can be accommodated very well. Implications: It is hoped that this research will have an impact in formulating contract models salam which so far cannot be implemented in sharia banking.

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Section: Resultsmentioning

confidence: 99%

Section: Financing Development Model Of Salam Contractmentioning

confidence: 99%

Sharia Banking Contract Model: Alternative Financing For the Agricultural Sector in Indonesia

Prayogi,

Ramadhan

2024

IJIE

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“…Several studies have indicated that Salam is difficult to develop due to bank fears of dishonesty being perpetrated by farmers (Abrista, 2009;Affandi, 2014;Roziq et al, 2014), difficulty in providing consumers with understanding of Salam financing and difficulty in controlling farmers so that they maintain the quantity and quality despite 4,433,492 5,004,909 5,765,171 6,662,556 7,763,951 9,084,467 9,943,320 10,678,320 Source: OJK (2020) IMEFM 15,1 a failing harvest (Roziq et al, 2014). In addition, Salam contracts have high risk (Abrista, 2009;Adi, 2012;Affandi, 2014;Ashari and Saptana, 2005;Muneeza et al, 2011;Ningsih and Wardayati, 2016;Roziq et al, 2014) and socialisation with farmers has also been inadequate (Ningsih and Wardayati, 2016). Farmers are mostly unaware of IBs' products, especially regarding Salam.…”

Section: Imefm 151mentioning

confidence: 99%

“…On the one hand, the farmers are in need of Islamic financing, and on the other hand, only a limited number of financing providers are available. While there is a specific product within Islamic finance that is designed for agriculture, namely, Salam, its offering by IBs is still very limited as it is seen to pose various risks to the IBs (Abrista, 2009;Adi, 2012;Affandi, 2014;Ashari and Saptana, 2005;Muneeza et al, 2011;Ningsih and Wardayati, 2016;Roziq et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…Salam has been evidenced as a feasible product to be offered in eradicating unlawful and non-syariah financing practices in the agricultural sector (Hossain et al, 2019). Among the solutions that are offered for developing Salam there are: building banks specifically for farmers; providing education to farmers; and providing alternative payments on Salam products (Ningsih and Wardayati, 2016).…”

Section: Introductionmentioning

confidence: 99%

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Salam financing: from common local issues to a potential international framework

Mulyany¹,

Indriani²

2021

IMEFM

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Purpose This research is concerned with the development of Salam, which caters for the specific needs of farmers, who form a vital yet fragile group in most developing nations. Based on the local context of Aceh Province in Indonesia which is considered to be parallel with other developing countries, the purpose of this paper is to embrace the whole set of issues and sketch out an extended Business Model Canvas (BMC) for Salam financing by delineating the three W’s of What, Why and How Salam can be offered by Islamic Banks (IBs). Design/methodology/Approach In-depth interviews were conducted with key stakeholders comprising of farmers, higher-ranking bankers of IBs, members of the Syariah Supervisory Board and academicians who are experts in Islamic finance. The re sults of the interviews added to a review of the literature were also mapped onto an extended canvas model. Findings Several interesting insights are derived and, primarily, that Salam is a feasible product to be offered by IBs, provided that there is a significant change in the thinking paradigm and risk mitigation models by all stakeholders, but mainly the IBs and the regulators. Research limitations/implications This study may be limited in the number and range of respondents who were chosen for interview. There are possibly other key informants, such as regulators and local custom figures, who may willing to provide useful information. The application of BMC for Salam may also be relatively new, hence its justification for a wider implementation may still need further analysis. Originality/value This study is deemed to add significant perspectives on product development and innovation in Islamic banking and particularly regarding Salam. This study advances the method used to study Salam by contextualising the product mapping of Salam into an extended BMC.

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Türkiye'de Tarım Sektörünün Finansal Yapısı ve Tarımın Finansmanı Üzerine Bir Çalışma: Alternatif Bir Finansman Yöntemi Olarak Selem Sözleşmeleri

Tiryaki

Göker

2021

İktisadi İdari Ve Siyasal Araştırmalar Dergisi

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Bu çalışmada, ekonomik kalkınma ve istihdam üzerinde büyük etkisi olan tarım sektörünün finansmanında karşılaşılan güçlüklere alternatif bir çözüm önerisinin sunulması amaçlanmaktadır. Türkiye Cumhuriyeti Merkez Bankası tarafından oluşturulan 2009-2019 yılları arasına ait sektör mali tablolarından faydalanılarak sektörün finansal yapısı ve riskliliğine ilişkin analizler gerçekleştirilmiştir. Türkiye'de tarım sektöründe özellikle kısa vadeli borç yükünün oldukça fazla olduğu, sektörde kısa vadeli likidite sıkışıklığının yaşandığı görülmüştür. Bununla birlikte tarım sektörünün doğası ve niteliği itibarıyla sermaye devir hızının düşük olması, doğal koşullara bağımlı olması, tasarruf yetersizliği gibi nedenlerle kısa vadeli finansmana ihtiyaç duyduğu anlaşılmaktadır. Bu çerçevede, tarım sektörünün borç yükünü azaltırken ihtiyacı olan finansmanın da temin edilebilmesini sağlayacak bir finansman modeli olan Selem Sözleşmeleri'nin hukuki altyapı bakımından uygulanmasında herhangi bir engel olmaması ve faiz hassasiyetine sahip olan üreticilerin de finansal sisteme dâhil edilebilmesi gibi yönleriyle Türkiye'de uygulanabilir bir finansman yöntemi olduğu sonucuna ulaşılmıştır.

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Modification Finance of Salam and the Implications for Salam Accounting Treatment in Indonesia

Cited by 3 publications

References 1 publication

Sharia Banking Contract Model: Alternative Financing For the Agricultural Sector in Indonesia

Sharia Banking Contract Model: Alternative Financing For the Agricultural Sector in Indonesia

Salam financing: from common local issues to a potential international framework

Türkiye'de Tarım Sektörünün Finansal Yapısı ve Tarımın Finansmanı Üzerine Bir Çalışma: Alternatif Bir Finansman Yöntemi Olarak Selem Sözleşmeleri

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