MODELS OF FINANCING WITH PROFIT SHARING AND LINKAGE PROGRAM FOR MICRO, SMALL, MEDIUM ENTERPRISES IN JEMBER REGENCY, EAST JAVA, INDONESIA

Abstract

Aims of this study are to analyze the implementation of scheme of profit - loss sharing, problems and solutions, construction of financing model with using profit loss sharing and linkage program in financing for Micro, Small, and Medium Enterprises. This study is exploratory and survey research to be carried out in the regency of Jember using a triangulation method. Method of data analysis use Miles and Huberman model which consists of data collection, data reduction,data display and conclusion drawing/verification

The results of research sugested that Islamic financial institutions should apply the profit sharing financing for medium, small and micro enterprises with mudharaba mustaraka which is a combination of mudaraba and musharaka. This scheme can protect losses for Islamic financial institutions and still provide flexibility for Micro, Small, and Medium Enterprise to manage their business without interference hands from islamic financial institutions. Islamic financial institutions such as sharia bank , sharia rural bank, sharia cooperative, baitul maal wat tanwill, sharia micro financial institutions should make linkage program:figure each other’s for medium, small, and micro enterprises with using mudaraba mustaraka scheme.