Atika Rukminastiti
ABSTRACT
Agribusiness sector has an important role in economic development
in Indonesia. However, Small and Medium Enterprises (SME) in this sector still
has a lot of problem. One of them is that, SME in this sector are still having
difficulties to access business financing provided by Islamic financial
institutions and banking. This paper attempts to analyze the benefit,
opportunity, cost and risk of Islamic financial institutions in promoting SME
agribusiness utilizing ANP method and Benefit Opportunity Cost Risk (BOCR)
approach, including the proposed alternative strategies. Results of this study
show that the highest priority of cost and risk is advertising cost, and
external side show that almost farmers in Indonesia have weaknesses in capital
structure and difficulties to access capital resources. The highest priority of
benefit and opportunity is that Islamic Financial Institutions has a just
profit-loss sharing system i.e., taking into account the possibility of profit
and loss, also from external side show that market share of agribusiness will
grow bigger. Strategic priorities which will make Islamic Financial
Institutions as a strategic alternative to promote SME in the agribusiness
sector are by providing alternative financing schemes based on sub-activities,
form Agricultural Bank, organize incentive schemes, and establish Linkage
Program between BUS-BPRS-LKA-Government
Keywords: Agribusiness, SMEs, Islamic Financial Institutions,
ANP-BOCR