Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology

Fadhil, Rahmat; Yusuf, Muhammad; Bahri, T. Saiful; Maulana, Hafiizh; Fakhrurrazi, Fakhrurrazi

doi:10.7201/earn.2021.02.04

Cited by 2 publications

(2 citation statements)

References 24 publications

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“…The design of sharia agricultural insurance is considered necessary to provide opportunities for the development of Islamic financial product features that are developing in Indonesia, especially the dominance of Muslim farmers. Another perspective to create the paradigm of agricultural development that is free from moral hazard behaviour is established through Indonesian farmers' local wisdom, which mostly is a community of Muslim farmers [15].…”

Section: Figure 2 Systems Development Conceptual Modelmentioning

confidence: 99%

“…Based on the study with soft system methodology [15], there is a moral hazard that philosophically occurs in the practice of agricultural insurance with concept transfer of risk of farming land. The action of change with the Islamic agricultural insurance system changes the concept of transfer risk to become sharing of risk between farmers and the insurance institution in the management of tabarru' funds.…”

Section: Introductionmentioning

confidence: 99%

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Design of Islamic Agricultural Insurance Model: Evidence from Indonesia

Yusuf¹,

Fadhil²,

Bahri³

et al. 2022

IJSDP

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The agricultural sector is a role model that can be the basis for policymakers to integrate Islamic insurance patterns in agriculture. This research aims to design a model of the Islamic agricultural insurance system based on Islamic law in the context of Indonesia. This study is expected to contribute for Indonesian government to accommodate the implementation of the Islamic agricultural insurance system and pattern in Indonesia. This study used an expert system approach through data collection and information as a reference in the formulation of model designs, including interviews, questionnaires, direct observation, and data synthesis in the field. This research stage used a systems development conceptual model described in the research process, including planning, analysis, design, verification, validation, and building models. The research hypothesis is confirmed that Islamic agricultural insurance can be implemented based on risk and investment with tabarru’ funds (mutual financial aid funds) and investment funds. Islamic agricultural insurance is a way out for farmers, especially Muslim farmers, in ensuring agriculture management by managing the level of risk due to crop failure. Islamic agricultural insurance systems can guarantee risks that arise in agricultural businesses to provide inner peace to farmers in getting the good and right protection for businesses that run following Islamic principles. This research has resulted in innovative features and development models of Islamic agricultural insurance for the Protection and Empowerment of Farmers in Indonesia.

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Section: Figure 2 Systems Development Conceptual Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Design of Islamic Agricultural Insurance Model: Evidence from Indonesia

Yusuf¹,

Fadhil²,

Bahri³

et al. 2022

IJSDP

View full text Add to dashboard Cite

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Model Pengembangan Pembiayaan Syariah Sektor Pertanian di Provinsi Aceh: Suatu Telaah Soft System Methodology

Maulana

Amri

Iski

2022

J. Ilmu. Pertan. Indones.

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The agricultural sector is the largest sector for economic output in Aceh which also dominates the largest number of workers in Aceh. The Aceh government needs to establish strategic steps to formulate financing in the sector as stipulated in the agricultural regulations based on Qanun Number 11 of 2018 about Islamic Financial Institutions (LKS). This research is designed to formulate system for developing Islamic financing in the agricultural sector after the implementation of Qanun Number 11 of 2018 about LKS in Aceh with soft systems methodology (SSM) approach. This study has resulted a conceptual model of the Islamic financing strategy for the agricultural sector in Aceh Province. Based on the results of the review of the conceptual framework using the SSM approach, strategies that can be performed for implementation of Islamic agricultural finance are the Islamic financial product strategy, Islamic agricultural financing institutional strategy, local and central government communication strategies, and human resource development strategy. This study recommends that the Government of Aceh needs to prepare regulatory policies, Islamic financial product schemes, and institutions in strengthening the implementation of Islamic financing based on the agricultural sector in Aceh. Keywords: islamic financing, agriculture, soft systems methodology, Qanun LKS

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Precaution Strategy of Moral Hazard Practice in Agricultural Insurance in Indonesia: An Approach of Soft Systems Methodology

Cited by 2 publications

References 24 publications

Design of Islamic Agricultural Insurance Model: Evidence from Indonesia

Design of Islamic Agricultural Insurance Model: Evidence from Indonesia

Model Pengembangan Pembiayaan Syariah Sektor Pertanian di Provinsi Aceh: Suatu Telaah Soft System Methodology

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