Potentials, Constraints and Sharia-Based Financing Models on Cassava Agroindustry BUMDes in Jember District - Indonesia

Abstract

Through integrating the Village Ministry program that encourages the village government to establish a Village Owned Enterprise (BUMDes) and the New Regent Program of Jember Regency that is one village one product and by utilizing the large productivity of cassava farming and the feasibility of previous research on cassava farmers, so those motivate writer (1) to find out the opportunities and obstacles faced by BUMDes in the field of cassava agro-industry, (2) to determine the appropriate sharia-based financing model for BUMDes (Badan Usaha Milik Desa) in the field of cassava agro-industry. This type of research used a survey research and exploratory qualitative research to be carried out in every village in the district Arjasa, Temurejo and Sumberbaru Jember Indonesia since three of these districts are the highest cassava producer in Jember district (Department of Agriculture, 2016). Primary and secondary data will be analyzed using Miles and Huberman method and triangulation technique. Research in BUMDes in 24 villages in three districts Arjasa, Sumberbaru and Tempurejo found that (a) although the 24 villages have farms of cassava,but Karangbayat is the only village that has high potential for establishing cassava agro-industry BUMDes; (b) constraints experienced by management in managing BUMDes that are ;less skilled human resources, marketing, production techniques, venture capital / finance and administration; (c) sharia financing model for cassava BUMDes agroindustry there are 3 forms; (I) BUMDes financing model sourced from the village fund by shared-profit (mudharabah) and (ii)BUMDes funding models sourced from salam (iii) BUMDes financing model through giving raw cassava is done by mudharabah mustarakah and murabahah