ISSUE OF THE APPLICATION MUZARA’AH CONTRACT IN INDONESIA: A COMPREHENSIVE ANALYSIS AND PROPOSED SOLUTION

Abstract

Indonesia is an archipelago country known for its richness of natural resources. Plants, animals, and a vital commodity in Indonesian soil. The Equator across the zone of Indonesia makes it prolific. Its fertile land along with a stable climate makes much Indonesian use it for farming. According to the Central Bureau of Statistics, the number of Indonesian populations within 34 provinces work as a farmer in 2016 is 35.088.823. That is to say, the prosperity of more than 35 million population of Indonesia is in the agricultural sector. This number is a great amount that has exclusive attention from the government. The agricultural sector is highly influential to food commodity and becomes the main resource of income in a developing country. Agriculture problem that is faced nowadays is various from field quantity reduction, limited access to business service especially in funding, unproper harvest distribution, and unpredictable environment condition like weather nor climate. Muzara’ah becomes an alternative source of sharia-based financing and has an advantage in fund payment liberation, employment (cultivator), maximizing unmaintained field, incorporate potential within each side intended to prosper according to the deal. Muzara’ah in the agricultural sector is crucial to be applied considering Indonesian and the majority of the Asian community in Southeast Asia is land worker or cultivator.