The Role of Islamic Crowd-Investing for Sustainable Agriculture in Indonesia
Abstract
This research was conducted to discover the relationship between Islamic crowd investing and agriculture by exploring and analyzing the Islamic crowd-investing platform, and to describe the importance and benefits of sustainable agriculture in Indonesia. Funding platforms for agriculture are still relatively small in Indonesia. However, the potential for this sector is still very high due to the large number of demands and a large market. A systematic literature review with a qualitative approach research method was used in this study, specifically to review the literature retrieved from computerized databases, manual search, and authoritative texts related to Islamic crowd-investing and sustainable agriculture. This study showed a strong relationship explaining that financial technology, such as Islamic crowd-investing, has an important role not only in terms of funding, but also in achieving sustainable agriculture, which will have an impact on the environment that may potentiate the agricultural sector itself.
JEL Classification: O13, Q14
How to Cite:
Purnamasari, I., & Kassim, S. (2021). The Role of Islamic Crowd-Investing for Sustainable Agriculture in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 10(2), 343-358. https://doi.org/10.15408/sjie.v10i2.20060.
Keywords
References
Alisjahbana, A. S., & Busch, J. M. (2017). Forestry, Forest Fires, and Climate Change in Indonesia. Bulletin of Indonesian Economic Studies, 53(2), 111–136. https://doi.org/10.1080/ 00074918.2017.1365404
Allo, A. G., Sukartini, N. M., & Widodo, T. (2017). Dynamic Changes in Comparative Advantage of Indonesian Agricultural Products. Munich Personal RePEc Archive, 80028.
Amaruzaman, S., Leimona, B., Noordwijk, M. Van, & Lusiana, B. (2017). Discourses on The Performance Gap of Agriculture in a Green Economy: a Q-Methodology Study in Indonesia. International Journal of Biodiversity Science, Ecosystem Services & Management, 13(1), 233–247. https://doi.org/10.1080/21513732.2017.1331264
Anshari, M., Almunawar, M. N., Masri, M., & Hamdan, M. (2019). Digital Marketplace and FinTech to Support Agriculture Digital Marketplace and FinTech to Support Agriculture Sustainability Sustainability Assessing the Feasibility Using The Masairol Heat Demand-Outdoor Brunei Forecast Temperature Function District Heat. Energy Procedia, 156, 234–238. https://doi.org/10.1016/j.egypro.2018.11.134
Ansori, M. (2019). Perkembangan Dan Dampak Financial Technology (Fintech) Terhadap Industri Keuangan Syariah Di Jawa Tengah. Wahana Islamika: Jurnal Studi Keislaman, 5(1), 31–45.
Asfarian, V. W. A. (2020). E-Initiative for Food Security : Design of Mobile Crowdfunding Platform to Reduce Food Insecurity in Indonesia. Proceeding at Conference: 2020 8th International Conference on Information and Communication Technology (ICoICT).
Asikin, Z., Baker, D., Villano, R., & Daryanto, A. (2020). Business Models and Innovation in The Indonesian Smallholder Beef Value Chain. Sustainability, 12(17), 1–13. https://doi.org/10.3390/su12177020
Bashir, A., & Yuliana, S. (2019). Identifying Factors Influencing Rice Production and Consumption in Indonesia. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 19(2), 172-185. https://doi.org/10.23917/jep.v19i2.5939
Belleflamme, P., Omrani, N., & Peitz, M. (2015). The Economics of Crowdfunding Platforms. Information Economics and Policy, 33, 11–28. https://doi.org/10.1016/j.infoecopol.2015.08.003
Bi, S., Liu, Z., & Usman, K. (2017). The Influence of Online Information on Investing Decisions of Reward-based Crowdfunding. Journal of Business Research, 71, 10–18. https://doi.org/10.1016/j.jbusres.2016.10.001
Chang, W. I. (2018). Exploring Crowdfunding Performance of Agricultural Ventures: Evidence from FlyingV in Taiwan. Lecture Notes of the Institute for Computer Sciences, Social-Informatics and Telecommunications Engineering, LNICST, 208, 165–173. https://doi.org/10.1007/978-3-319-66742-3_16.
Charrois, T. L. (2015). Systematic Reviews : What Do You Need to Know to Get Started ? The Canadian Journal of Hospital Pharmacy 68(2):144-8, 68(2), 144–148.
Cooper, C., Booth, A., Varley-campbell, J., Britten, N., & Garside, R. (2018). Defining The Process to Literature Searching in Systematic Reviews: A Literature Review of Guidance and Supporting Studies. BMC Medical Research Methodology, 18(1), 1–14.
Djawahir, A. U. (2018). Teknologi-layanan Keuangan, Literasi-inklusi Keuangan, dan Value pada Fintech Syariah di Indonesia: Perspektif S-O-R (Stimulus-organism-response) Model. In 2nd Proceedings Annual Conference for Muslim Scholars, 439–448.
Dufhues, T., Buchenrieder, G., Euler, D. G., & Munkung, N. (2011). Network Based Social Capital and Individual Loan Repayment Performance. Journal of Development Studies, 47(8), 1199-1215. https://doi.org/10.1080/00220388.2010.547936.
Findiastuti, W., Singgih, M. L., & Anityasari, M. (2018). Indonesian Sustainable Food-Availability Policy Assessment Using System Dynamics: A Solution for Complexities. Cogent Food & Agriculture, 102(1), 1–21. https://doi.org/10.1080/23311932.2018.1455795
Firdaus, D. W., & Aryanti, R. K. (2019). The Influence of Financial Technology in Financial Transactions. IOP Conference Series: Materials Science and Engineering, 662(2), 022012. https://doi.org/10.1088/1757-899X/662/2/022012
Firmansyah, E. A., & Anwar, M. (2019). Islamic Financial Technology (FINTECH): Its Challenges and Profile of the Islamic Fintech Firms The six Islamic Fintech Firms Participating in This Research are The Firms Headquartered in Indonesia. Advances in Social Science, Education and Humanities Research (ASSEHR), 216, 52–58.
Fitriani, H. (2018). Kontribusi Fintech dalam Meningkatkan Keuangan Inklusif pada Pertanian. El Barka: Journal of Islamics Economics and Business, 1(1), 1–26.
Gimpel, H., Rau, D., & Röglinger, M. (2018). Understanding FinTech Start-ups – A Taxonomy of Consumer-Oriented Service Offerings. Electronic Markets, 28, 245-264. https://doi.org/10.1007/s12525-017-0275-0
Hinson, R., Lensink, R., & Mueller, A. (2019). ScienceDirect Transforming Agribusiness in Developing Countries: SDGs and The Role of FinTech. Current Opinion in Environmental Sustainability, 41, 1–9. https://doi.org/10.1016/j.cosust.2019.07.002
Hornuf, L., & Schwienbacher, A. (2015). Funding Dynamics in Crowdinvesting. Research Papers in Economics. University of Trier.
Iman, N. (2020). The Rise and Rise of Financial Technology: The Good, The Bad, and The Verdict The Rise and Rise of Financial Technology: The Good, The Bad, and The Verdict. Cogent Business & Management, 7(1), 1-17. https://doi.org/10.1080/23311975.2020.1725309
Johnson, B. T., & Hennessy, E. A. (2019). Social Science & Medicine Systematic Reviews and Meta-Analyses in The Health Sciences: Best Practice Methods for Research Syntheses. Social Science & Medicine, 233, 237–251. https://doi.org/10.1016/j.socscimed.2019.05.035
Johnson, M. A., Stevenson, R. M., & Letwin, C. R. (2018). A Woman’s Place is in the… Startup! Crowdfunder Judgments, Implicit Bias, and The Stereotype Content Model. Journal of Business Venturing, 33(6), 813-831. https://doi.org/10.1016/j.jbusvent.2018.04.003
Kim, T., Por, M. H., & Yang, S. B. (2017). Winning The Crowd in Online Fundraising Platforms: The Roles of Founder and Project Features. Electronic Commerce Research and Applications, 25, 86–94. https://doi.org/10.1016/j.elerap.2017.09.002
Kshetri, N. (2015). Success of Crowd-based Online Technology in Fundraising: An Institutional Perspective. Journal of International Management, 21(2), 100–116. https://doi.org/10.1016/j.intman.2015.03.004
Lee, S., Ahn, C., Song, K. M., & Ahn, H. (2018). Trust and Distrust in E-Commerce. Sustainability, 10(4), 1015. https://doi.org/10.3390/su10041015
Li, Y., Du, J., & Fu, W. (2020). Thirty Days Are Enough: What Determines The Crowd's Cash Time in Agri-food Crowdfunding ?, 12(3), 553–575. https://doi.org/10.1108/CAER-10-2019-0176.
Maehle, N. (2020). Sustainable Crowdfunding: Insights From The Project Perspective, 15(268223), 281–302. https://doi.org/10.1108/BJM-02-2019-0079.
Mariyono, J. (2019). Microcredit and Technology Adoption: Sustained Pathways to Improve Farmers’ Prosperity in Indonesia. Agricultural Finance Review, 79(1), 85–106. https://doi.org/10.1108/AFR-05-2017-0033.
Mason-D’Croz, D., Sulser, T. B., Wiebe, K., Rosegrant, M. W., Lowder, S. K., Nin-Pratt, A., Willenbockel, D., Robinson, S., Zhu, T., Cenacchi, N., Dunston, S., & Robertson, R. D. (2019). Agricultural Investments and Hunger in Africa Modeling Potential Contributions to SDG2 –Zero Hunger. World Development, 116, 38–53. https://doi.org/10.1016/j.worlddev.2018.12.006
McIntosh, C., & Mansini, C. S. (2018). The Use of Financial Technology in the Agriculture Sector. ADBI Working Paper Series No. 872.
Meutia, I., Adam, M., & Vegirawati, T. (2017). Comparative Analysis of Agricultural Financing in Some Countries. Tazkia Islamic Finance and Business Review, 11(1), 15–38.
Misso, R., & Cesaretti, G. P. (2017). (2019). Food System and Sustainability : The Role of Crowd-Funding. Innovative Approaches and Applications for Sustainable Rural Development, Springer Earth System Sciences, 01(1), 221–233. https://doi.org/https://doi.org/10.1007/978-3-030-02312-6_13
Mittelman, R., & Rojas-Méndez, J. I. (2013). Exploring Consumer’s Needs and Motivations in Online Social Lending for Development. Journal of Nonprofit and Public Sector Marketing, 25(4), 309-333. https://doi.org/10.1080/10495142.2013.830544
Moher, D., Shamseer, L., Clarke, M., Ghersi, D., Liberati, A., Petticrew, M., Shekelle, P., Stewart, L. A., & PRISMA-P Group. (2015). Preferred Reporting Items for Systematic Review and Meta-Analysis Protocols (PRISMA-P) 2015 Statement. Systematic Reviews, 4(1), https://doi.org/10.1186/2046-4053-4-1.
Morton, S. C., Murad, M. H., O’Connor, E., Lee, C. S., Booth, M., Vandermeer, B. W., Snowden, J. M., D’Anci, K. E., Fu, R., Gartlehner, G., & Wang Z, S. D. (2016). Methods Guide for Comparative Effectiveness Reviews Quantitative Synthesis — An Update. Scientific Resource Center.
Motylska-kuzma, A. (2018). Crowdfunding and Sustainable Development. https://doi.org/10.3390/su10124650
Muhyiddin, M. (2018). Structural Transformation from Agricultural to Manufacturing Sector in Indonesia. (Unpublished Thesis). Universitas Muhammadiyah Malang.
Mujahidin, M. (2019). Opportunities and Challenges of Sharia Technology Financials in Indonesia. MPRA Munich Personal, 94844.
N G Filimonova, M G Ozerova, I. N. E. and N. B. M. (2019). Crowdfunding as the way of projects financing in agribusiness. IOP Conf. Series: Earth and Environmental Science. https://doi.org/10.1088/1755-1315/315/2/022098
Nassiry, D. (2018). The Role of Fintech in Unlocking Green Finance: Policy Insights for Developing Countries.
Nielsen, K. R. (2017). Crowdfunding for Sustainability: A Study on the Potential of Reward-based Crowdfunding in Supporting Sustainable Entrepreneurship. (Unpublished Dissertation). Copenhagen Business School.
Ningrat, R. G., & Nurzaman, M. S. (2019). Developing Fintech and Islamic Finance Products in Agricultural Value Chain. Journal of Islamic Monetary Economics and Finance, 5(3), 491–516. https://doi.org/10.21098/jimf.v5i3.1077.
Ordanini, A., Miceli, L., Pizzetti, M., & Parasuraman, A. (2011). Crowd-funding: Transforming Customers Into Investors Through Innovative Service Platforms. Journal of Service Management, 22(4), 443–470. https://doi.org/10.1108/09564231111155079.
Pronti, A., & Elena, P. (2019). Not Just for Money. Crowdfunding a New Tool of Open Innovation to Support the Agro-Food Sector. Evidences on the Italian Market. Journal of Agricultural & Food Industrial Organization, 17(1), 1-16.
Rossi, M. (2014). The New Ways to Raise Capital: An Exploratory Study of Crowdfunding. International Journal of Financial Research, 5(2), 8–18. https://doi.org/10.5430/ijfr.v5n2p8.
Sa’ad, A. A., Ahmad, K., & Saleh, A. O. H. (2019). P2p Islamic Fintech Investment Innovation. A Proposal of Musharakah Smart Contract Model for SMEs Financing and Social Development. Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC), Special Issue, 169–184.
Saiti, B, Afghan, M., Noordin, N. H. (2018). Financing Agricultural Activities in Afghanistan: A Proposed Salam -Based Crowdfunding Structure. ISRA International Journal of Islamic Finance, 10(1), 52-61. https://doi.org/10.1108/IJIF-09-2017-0029.
Sakinah, N., Purwanti, E., & Jamilah, S. (2018). Optimalisasi Pembangunan Sektor Pertanian Indonesia dengan Menggunakan Sharia Agraria Manajement Organization (SAMO). Perisai : Islamic Banking and Finance Journal, 2(1), 16-33. https://doi.org/10.21070/perisai.v2i1.1468.
Shaffril, H. A. M., Samah, A. A., Samsuddin, S. F., & Ali, Z. (2019). Mirror-Mirror on The wall, what climate change adaptation strategies are practiced by the Asian’s fishermen of all? Journal of Cleaner Production, 232, 104–117. https://doi.org/10.1016/j.jclepro.2019.05.262.
Sierra-Correa, P. C., & Cantera Kintz, J. R. (2015). Ecosystem-Based Adaptation for Improving Coastal Planning for Sea-Level Rise: A Systematic Review for Mangrove Coasts. Marine Policy, 51, 385–393. https://doi.org/10.1016/j.marpol.2014.09.013.
Smith, J., Feller, J., Gleasure, R., Oreilly, P., Cristoforo, J., & Shanping, L. (2017). Wise Crowds, Safe Crowds: Balancing Diversity & Protection in Crowd Investing. Cutter Business Technology Journal, 30(5).
Strzębicki, D. (2015). The Development of Electronic Commerce in Agribusiness – The Polish Example. Procedia Economics and Finance, 23, 1314–1320. https://doi.org/10.1016/S2212-5671(15)00573-0.
Suasih, N. N. R., & Yasa, I. N. M. (2017). Indonesian Eat Rice, But Why Farmers Are Poor? Scientific Papers: Management, Economic Engineering in Agriculture & Rural Development, 17(3), 403–410.
Syuaib, M. F. (2016). Sustainable Agriculture in Indonesia: Facts and Challenges to Keep Growing in Harmony with Environment. V-Management, Ergonomics and Systems Engineering, 18(2), 170-185.
Teja, A. (2017). Indonesian Fintech Business: New Innovations or Foster and Collaborate in Business Ecosystems? The Asian Journal of Technology Management, 10(1), 10–18.
Tomczak, A., & Brem, A. (2013). A Conceptualized Investment Model of Crowdfunding. Venture Capital, 15(4), 335-359. https://doi.org/10.1080/13691066.2013.847614.
Utama, M. S. (2013). Potensi dan Peningkatan Investasi di Sektor Pertanian Dalam Rangka Peningkatan Kontribusi Terhadap Perekonomian di Provinsi Bali. Buletin Studi Ekonomi, 18(1), 51–57.
World Bank. (2013). Investing in Agribusiness: A Retrospective View of a Development Bank’s Investments in Agribusiness in Africa and Southeast Asia and the Pacific A Retrospective View of a Development Bank ’ s Investments in Agribusiness in Africa and Southeast Asia and the Pacific. World Bank Discussion Paper No. 1.
World Bank Group. (2016). Will Digital Technologies Transform Agriculture in Developing Countries? Policy Research Working Paper No. 7669.
Wright, T., Sugiarti, & Meylinah. (2016). Indonesia Grain and Feed Update July 2016. Global Agricultural Information Network Number ID1622.
Yoo, Y. G., & Choe, Y. C. (2014). Current Status of Korean Crowdfunding Industry and its Applicability to Agrifood Sector. Advanced Science Letters, 49(SoftTech), 213–221.
Yuan, H., Lau, R. Y. K., & Xu, W. (2016). The Determinants of Crowdfunding Success: A Semantic Text Analytics Approach. Decision Support Systems, 91, 67–76. https://doi.org/10.1016/j.dss.2016.08.001
Zhao, Q., Chen, C. Der, Wang, J. L., & Chen, P. C. (2017). Determinants of Backers’ Funding Intention in Crowdfunding: Social Exchange Theory and Regulatory Focus. Telematics and Informatics, 34(1), 370–384. https://doi.org/10.1016/j.tele.2016.06.006.
DOI: 10.15408/sjie.v10i2.20060
Refbacks
- There are currently no refbacks.