INSTITUTIONAL DEVELOPMENT OF FARMER GROUP THROUGH STRUCTURAL ANALYSIS, FARMER GROUP NETWORKS, AND AGRICULTURAL SHARIA FINANCING

Agricultural is a very strategic sector in economic development in Indonesia; however, several problems still need to be resolved such as farmers' welfare, access to capital, and production marketing. The existence of farmer groups and Sharia Micro Finance Institutions (SMFI) have not been able to optimize the potential of the agricultural sector. The purpose of this research was to formulate strategies and models of institutional strengthening through local farmer groups and capital strengthening through the intermediation of Sharia Financial Institution (SFI) with linkage program. The models of institutional strengthening of farmer groups and SFI financing capital might become one of the foundations of national economic development. This research applied qualitative approach using data collected by indepth interview, focus group discussion (FGD) and observation from local agricultural sector actors, and used qualitative analysis approach of a case study with Analytical Network Process (ANP) analysis method.