Sharia and Conventional Microfinance Analysis to Farmer Welfare

Foods such as rice, corn, or wheat is a staple part of the world population. Especially in Indonesia. In Indonesia, almost all residents understand the word "eat" as "eat rice". In fact, if someone asked if you've eaten? then if the person is not eating rice, then the answer to the question posed to him is not. Although people questioned had been eating a lot of food (except rice). This indicates that people still rely on staple foods like rice. However, the level of community dependence on rice, which indicates that the demand for rice will never be less, had no effect on the welfare of rice farmers who are producers. Based on BPS data released in 1998 the percentage of poor households in rural agricultural sources of income is as much as 79.54% and 25.55% in urban areas. In addition, BPS data released in February 2011 it appears that from year to year, which has a base year 2007, the Food Crop Farmers Exchange (NTPP) has not changed much. NTPP in December from 2007 to 2010 respectively ie 100; 96.24; 96,6; 99,63. Because the source of household income from agriculture has a sizable portion of the total number of poor households in Indonesia, then the context of the welfare of farmers become very important in a discussion about the welfare of society. Thus, this will lead us to discuss specifically about the welfare of farmers. In fact, Roosgandha and valerian dervish in her study stated that the farmers are poor representative of community group. In order to produce well every business needs to be supported by the availability of sufficient capital. To that end, the role of financial institutions like bank as an institution indispensable intermediaries. But in fact, for some types of businesses, the bank can not perform the intermediaries function for loan disbursement. Included is the small farmers. Therefore, the role of microfinance institutions is to channel credit to those who can not access capital to the bank. According to Abdul rahim ABDUL RAHMAN (2007) "Microfinance is an alternative for micro entrepreneurs, the which are normally not eligible or bankable to receive loans from commercial banks". Research on Islamic microfinance and its relation to the welfare of society, especially given the funding, was made by Definta (2011). The study concluded that the practice of Islamic microfinance institutions BAITUTTAMWIL TAMZIS Branch Bandung through microfinance practices and coaching clients is done, it has the effect of an increase by 48.2 percent against the wealth of the merchant market. In addition, the provision of nobel prize to Muhammad Yunus is also sufficient to indicate that the micro financing strongly influence the level of welfare. However, business conditions and the character of the agricultural sector with trade, manufacturing, handicrafts, and other highly visible different. As shown in NTPP 2007 to 20 103, the welfare of farmers are not good enough. Whereas agricultural finance programs is not something new. Thus, there may be some inaccuracies in the application of good financing scheme based on sharia principles and conventional. Thus, based on data and conditions that have been the authors know, then there is a continual desire in the writer to examine more deeply about the micro-finance, both Islamic and conventional, and its relation to the welfare of farmers who do microfinance institution.