1. Background Research
Economic activity in the countryside in general is
dominated by small-scale farms with the main actors of farmers, farm workers,
traders and agricultural inputs, agro-processing, and home industries. However,
businesses in general are still faced with the classic problem of the limited
availability of capital, capital constraints may limit the space for
agricultural activities in the rural sector (Hamid, 1986).
Weak capital economic actors in rural areas has
been recognized by the government, with the state government launched several
programs for credit to farmers and small farmer entrepreneurs. Starting with
the credit Bimas 1972, then followed Credit Small Investment (Kredit Investasi
Kecil/ KIK) and the Permanent Working Capital Loans (Kredit Modal Kerja
Permanen/KMKP), Income Generation Project Farmer / Fisherman Small (P4K) Farmer
Business Credit (Kredit Usaha Tani/KUT), and to date they occurred People's
Business Credit (Kredit Usaha Rakyat/KUR). Although the government has
implemented a variety of loan programs, but the performance results are deemed
still not in line with expectations. This is reflected in the performance of
financial institutions has not been satisfactory, especially on the financial
institution as the executor.
According Martowijoyo (2005) the weak performance
of financial institutions as financial intermidiasi institutions can be viewed
from three aspects: (1) low levels of loan repayment; (2) low morality of the
implementing agency, and (3) low level of mobilization of public funds. The
disadvantage of these has consequences for not continuing financial
institutions set up after the program is completed. As a result, program
participants generally will again experience a shortage of capital.
To answer the problem of limited capital and
banking institutions are difficult to access for small farmers, it is necessary
to further optimize the potential of financial institutions which can be an
alternative source of funding for farmers and rural communities. One of the
financial institutions that can be exploited and encouraged to finance micro
segment is Baitul Maal Wa Tamwil (BMT), which includes one of the Informal Financial
Institutions (IFIs), yet can not be used optimally.
BMT built by the Government is able to exist and
contribute to serve the capital needs of low-income rural development although
in these institutions received government assistance. BMT existence in the
countryside could play a role serving the needs of small farms, although it is
still limited in scope particular group. This shows their internal capital
mobilization in the communities of farmers / rural, so the issue of capital is
not always small farms can only be solved by relying on external capital
mobilization.
Fukuyama (2002) argues that social capital, focused
on the importance of the relationship in economic affairs. Furthermore it is
said that companies, industries, regional, and national economies can function
more efficiently if there is respect for one another and the relationship of
trust between citizens. Putnam (1993), has also shown evidence that economic
growth is positively correlated with the presence of social capital. Economic development
in a community and economic development of rural would be good if the following
characteristics are owned by economic actors in a synergy between the
activities of the community, namely: (1) The presence of close relationships in
a village with other village between members people, (2) the presence of
leaders who are honest and egalitarian who treat themselves as part of a
community, not as rulers, and (3) the existence of mutual trust and cooperation
among the public.
The study
Nuwirman (1998) mentions the raising of capital in the form of principal,
mandatory, voluntary savings or sadaqoh activity of group institution and House
of Village Fund (Lumbung Pitih Ngari/LPN) in West Sumatra.
People who have high social capital will open up
the possibility of resolving the complexity of the problems more easily. Mutual
trust, tolerance, and they can build networks of cooperation both within
community groups as well as with other community groups. Traditional
communities, are known to have informal associations were generally strong and
has the values, norms, and ethics collectively as a community interconnected.
Other
institutions have been successful in utilizing local institutional as financial
intermediaries with rural communities is a non-bank credit institutions such as
House of Fund Village (LPD) Bali and LPN in West Sumatra. The purpose of the
institution is a financial intermediary for the rural poor (Robinson, 2001).
2.
Research Problem
Model BMT which is one of the Informal Financial
Institutions (IFIs). IFIs in the form of Baitul Maal Wa Tamwil (BMT), although
relatively less dominant (in the restricted group), but are able to exist in
serving the credit needs of small medium businesses and not exploitativeness,
as Julo-Julo (Zakri, 2001) and a group of joint venture (Nuwirman, 1988). The
agency is able to meet the credit needs of people who are not able to access
credit sources Formal Financial Institutions (LKF).
The ability of agencies played in
the countryside because he grew out of the community and has a joint capital
(Acharya et al, 1992; Quinones Jr., 1992) based on the social values developed
in the community. Even in the group Kongsi in West Sumatra are social values,
customs and religion in financial management (Nuwirman, 1998). This is in
accordance with the lifestyle of the people Minagkabau "Indigenous Basandi
Syarak (ABS), Syarak Basandi Kitabullah (SBK)"
Based on the above phenomenon can be formulated
research problem as follows:
a.
Why
Baitul Maal Wa Tamwil (BMT) can survive in the long term and play an effective
role in serving the needs of capital Small Farm (UTK) in rural areas?
b.
How Baitul
Maal Wa Tamwil applying social capital in enhancing the role of microfinance
institutions to serve the needs of capital UTK?
3. Review
of Literature
3.1
Concept of Financial Institutions
Microfinance Institutions MFIs) is a program of
crediting for small amounts to the poorest to finance the project he's working
on his own in order to generate income, allowing them to care for themselves
and their families, "Programmes extend small loans to very poor for
cell-employment projects that generate income, alowing them to care for
Themselves and their family ". Microfinance Institutions (MFIs) in
Indonesia according to the Asian Development Bank and the World Bank (Gunawan,
2007) The main characteristic, namely; (1) provides a variety of financial
services that are relevant or appropriate to the real needs of the community,
(2) serve low-income communities and (3) using the procedures and mechanisms
are contextual and flexible to make it more easily accessible to poor people
need.
Developing micro enterprises is a
strategic move because it would realize the broad bases development or
development through equity. They need capital to develop its capacity. With
business increases (becomes small scale enterprises), will effectively address
the poverty suffered by themselves and expected to help people in the poor
category.
3.2
Definition of Social Capital
Fukuyama (1995) illustrates the social capital in
the trust, believe and vertrauen means that the importance of trust is rooted
in cultural factors, such as ethics and morals. Trust appears the community to
share a set of moral values, as a way to create a common hope and honesty. He
also stated that the associations and the local network really has a positive
impact on economic welfare and local development and plays an important role in
environmental management. James S, Coleman (1999) asserts that, social capital
as a tool for understanding social action that combines theoretical
perspectives of sociology and economics. This notion was reinforced by
Serageldin (1999) that social capital always involves the community and make
the community arises not only from the interaction of market and economic
value. Serageldin provides a classification of social capital among others:
•
Social
capital in the form of social interaction but durable unidirectional
relationship, such as teaching and social interaction trading relationship was
reciprocal (mutual) such as social networks and associations.
• Social capital in the form of social interaction
effects are more durable in such unidirectional relationship of trust, respect
and imitation are in the form of a reciprocal relationship like gossip,
reputation, pooling, social roles and coordination, all of these contain high
economic value.
Simple and general conclusion
that can be raised about the main elements of social capital include norms,
reciprocity, trust, and network, Fukuyama (1995). The fourth element is a
significant influence on the behavior of co-operation to achieve the desired
result, which could accommodate the interests of individuals and groups who
cooperate collectively. In real terms in everyday life, when examined in depth,
all the behavior of socio-economic activities of local community members
embedded in social relationships network.
Referring to Fukuyana (1995) there are three
parameters ie social capital:
a.
Confidence
(trust): As explained Fukuyama (1995), trust is a growing expectation in a
society demonstrated their honest behavior, organized and co-operation based on
the norms that are shared. Social trust is an application to this
understanding. Damage social capital will lead to anti-social behavior (Cox,
1995), the absence of social capital in financial institutions will lead to
customer relationship with the manager of the institution will not trust each
other.
b.
Norma:
The norms consist of understandings, values, expectations and goals which are
believed and run together of religious, moral guidelines, and
standards seem secular ethical code propfesional. The norms are built and
thrive based on the history of cooperation in the past and applied to support
the climate of cooperation (Putnam, 1993, Fukuyama 1995). The norms can be a
precondition nor a product of social trust.
3.3 Role of Social Capital
Coleman (1988), social capital is inherent in the
structure of relationships between individuals. The structure of social
relations form a network that creates a wide range of social qualities such as
trust, open, unified norms, and define the various types of sanctions for its
members. Putnam (1995) defines social capital as "features of social
organization such as networks, norms, and social trust that Facilitate coordination
and cooperation for mutual benefit".
Social
capital is the adhesive for each individual, in the form of norms, trust and
networks, resulting in mutually beneficial cooperation to achieve common goals.
Social capital is also understood as knowledge and understanding shared by the
community, as well as patterns of relationship that allows a group of
individuals perform a productive activity. Sajalan also with what is proposed
World Bank (1999), social capital is defined to the institutional dimension,
relationship created, norms that shape the quality and quantity of social
relations in society. Social capital did not mean only a limited number of
institutions and social groups that support them, but also social glue that
maintain the unity of the group as a whole.
Lesser (2000), social capital is very important for
the community because it (1) provide ease of access to information for members
of the community; (2) into a media power sharing or division of power in the
community; (3) to develop solidarity; (4) allows the mobilization of community
resources; (5) allows the achievement of joint; and (6) establish and organize
a community kebersamaam behavior. Social capital is a commitment of each
individual to open with each other, mutual trust, authority for any person who
chooses to act according to its responsibilities. This tool generates a sense
of togetherness, solidarity and responsibility at the same time will progress
together.
Specifically World Bank (1998) provided a focus of
attention in the assessment of the role and implementation of social capital
and the possible contribution in the process of poverty reduction, especially
in developing countries. The role and position of social capital in the
community daily activities also have been studied more intensively by experts
from different scientific viewpoints among others, from the perspective of
agro-eco system, economics, sociology, politics, anthropology and psychology.
4. Results Analysis
Analysis of the role of BMT Agam Madani is as a source
of capital in the country, based on aspects of the philosophy of the
establishment of the institution, accessibility, fairness of distribution,
usefulness of credit, and the role of the board in capital mobilization in
general it can be concluded that the BMT-oriented and have the option for the
small business of farming (Usaha Tani Kecil/UTK) so as to play an effective
role in meeting the credit needs of UTK.
From the
aspect of the establishment of institutions, BMT is a local institution built,
managed, and utilized by, and for the UTK. So that the institution's interests
and needs UTK. From the aspect of aksessibilitas show credit from a financial
institution case very easily accessible. This is caused by the application of
procedures and terms of loans are relatively easy. From the aspect of fairness
of distribution, indicating that more credit is allocated to UTK, both the
number of recipients and lending.
From the aspect of credit benefits, although at BMT
Madani Agam still feel the increase in income. While aspects of the board's
role in the mobilization of capital, internal capital mobilization success is
inseparable from the role of the board, ranging from the determination of the
shape and size of the contribution of deposits to its formation mechanism
involving members. The role of the board not only in the form of collective
capital formation but also in fund management ziswah (social fund). This is
because of the desire and ability of the board to provide adequate credit
facilities, cheap, and easy for UTK. Besides the background most of the BMT
caretaker who also acts as indigenous stakeholders, society figures also play a
role in the utilization of social funds.
To see
how the effectiveness of the role of BMT case against the provision of capital
for rural UTK, presented empirical findings described in terms of the aspects
analyzed as follows:
4.1 Establishment of the
Institute of Philosophy
BMT is a local institution built,
managed, and used by and for the community / UTK to overcome the difficulties
of collective venture capital. Background of the establishment and management
of community / UTK lead institution is in favor of the interests of the
community / UTK itself.
Background of the establishment of this institute
is to release people from the bondage of the moneylenders and middlemen. While
the goal to be achieved, among others, to invite people pray in the mosque, so that people can
tithe-donation-shodaqoh, educate citizens help each other, providing capital
loans, educate citizens behave honestly, and others.
In the development of the
activity of BMT above, agencies are able to realize the objectives of the
institution to meet the credit needs of the community, especially UTK. Credit
service system tailored to the nature and dynamics of UTK, especially in the
form of administrative procedures and requirements are simple and not absolute
use of collateral.
4.2 Accessibilities
BMT Madani Panampuang Agam is a
self-help group that specializes in savings and loans. The goal is for citizens
regardless of bondage moneylenders and middlemen who provide loans with
extremely high interest rates (40-60%) per annum. Therefore deliberately set up
institutions that allow citizens receive venture capital easily and quickly do
not harm. For the institutions managed by implementing procedures and
requirements are simple, easily accessible.
BMT Board establishes the following requirements:
(1) status as citizens and active Panampuang villages attend the meeting if
invited, (2) have a viable business, (3) have the honesty. Members propose the
funding requirements to the board in accordance with the business by filling in
the form of loans. Furthermore, the board will consider the feasibility and
efficiency report is concerned. When the board considers the members to be
believed, then the credit can be given by signing an agreement for the return.
Furthermore, members are given a card installment loans. Must sign an agreement
intended as a binder between the members and the board's evaluation of the loan
beyond.
Location informal financial institutions is quite
strategic. Activities BMT Madani Agam activities carried out in his own office,
which is located between the residential area which is easily accessible with
existing transportation. In addition, members can meet face to face every day
with the board either in mosques or in the office BMT. Office locations close
to where people live within easy reach of the lead institution. The time
required in the application process until the credit disbursed by the two
institutions is generally relatively short, only 15-25 days. In short time on
the credit application Agam BMT Madani for credit application process is
relatively simple. Besides, the board usually ask for information, assessment,
or the consideration of the members who know the condition of the borrower, so
the time needed to approve the loan is very short.
Credit collateral requirements are generally not
found in BMT especially the number of loans under Rp 5 million. The management
only implement the system of trust and honesty that members will use the loan
borrowed funds for productive business. Therefore, administrators do a rigorous
selection of the members who apply for a loan, especially the efficiency report
and uses of funds. This kind of information obtained from the participation of
members.
Implementation of the system of loan repayment at
BMT Madani Agam not incriminate members. Moreover, there is no requirement of
collateral in applying for loans. However, members are required to hold the
trust placed in the board, in addition to fines only apply to the BMT. To
sensitize members, administrators often hold lectures / taklim mandatory
members. This effort indirect positive impact on the awareness of people, so
that the relatively low level of loan arrears.
4.3 .Keadilan Distribution
BMT credit rationing in both cases is quite good.
From the number of loan recipients, the number of farmers and traders of
agricultural products. The number of recipients farmers loans reached Rp 50.75
million (17.1%) of the total loan recipients while traders Rp 58,000,000
(29.2%), furnishings Rp 101.5 million (34.1%) and craftsmen Rp 87 million
(30%). Of the loan amount allocated, farmers receive a smaller credit than
traders, this according to administrators for existing farmers LKMA, the BMT
looking for markets other than farmers (traders of agricultural products). The
above description indicates that BMT cases in distributing loans to small farms
in the study area is quite good, although in limited quantities and have not
been able to increase farmers' income significantly.
4.4 The Benefit of Credit for UTK
Benefits of credit provided by
BMT case against UTK research area can be seen from the beneficial aspects of
credit in capital requirements UTK and konstribusinya in increasing revenue.
From the aspect of capital requirements, the BMT
Madani Panampuang Agam, besides still constrained by limited capital
institutions, also still serve to increase the income of farmers, so it is
still difficult to be expected to boost agricultural development.
4.5 Role of the Board in the
Capital Mobilization
The success in mobilizing capital at BMT is highly
dependent on the role of the board and members. In Agam BMT Madani Panampuang,
internal capital mobilization established through a consultation meetings and
board members. At this meeting the board in formulating
policies concerning capital resources and financial contributions of each
member's participation. Then the board asked for opinions, criticism and
feedback of the members in the meeting deliberations.
Thus the internal capital
mobilization, participation of members of the new member comes in the form of
principal savings, mandatory and special savings that resulted from the
operating income credit recipients. This participation is voluntary according
to the ability of members. The survival of the institution depends on the
awareness of the people and the spirit of togetherness in providing
participation.
The mobilization of internal
capital at BMT Madani Panampuang Agam is Nagari investment capital amounting to
Rp 300 million (63.2 percent). While the participation of members in a special
mandatory savings amounting to Rp 70.9 million (14.9 percent). Although the
contribution of members in the form of voluntary savings and infaq / shodaqoh
not visible due to the low level of income of farmers / members, but still in
business administrators at weekly meetings to give awareness to the members in
berinfak and sadaqoh. The low contribution of members to the mobilization of
internal capital due to the members' income is still relatively low due to lack
of working capital.
Based on analysis of the effectiveness of the role
of BMT, show partiality to members of the institution
/
community.
BMT is still constrained by the accumulation of collective capital by the end
of 2012 the new wealth amounted to Rp. 474 407 547.
The success of BMT internal capital mobilization of
internal capital mobilization in the form of deposits also from the collection
of members' savings fund is already running, though not in sufficient numbers.
4.6
Nature and Dynamics of Small Farm Credit Services as Object
From the analysis of the nature and dynamics of
farming in both BMT cases, generally indicates that the existence of BMT in the
study area tend to be aimed at serving the needs of capital UTK. This is
consistent with the nature and dynamics of farming in the two institutions
namely the object of credit services both institutions are UTK with a land area
between 0.25 - 0.5 hectares.
This conclusion is supported by
the fact the empirical findings of the analysis of the nature and dynamics of
the farming area of land, land status, type of plant, the intended use of
credit, collateral, amount of credit, capital resources, procedures and
administrative requirements, as well as the loan repayment system.
a.
Land: In
Agam BMT Madani Panampuang 93 percent of the farmers who cultivate agricultural
land area of 0.25 to 0.5 hectares and is communal land. This suggests that farmers
loans at BMT recipients in the study were mostly small farmers, and menangah.
b.
Land
Status: BMT all the farmers in the majority (80%) is land / communal land
(people), so that the status of farmers in BMT is as tenants. This shows that
the institution does not only serve the farmer owners but also serves
sharecroppers who is in need of working capital loans.
c.
Type of
Plant: BMT mostly farmers from their land to cultivate food crops (rice and
pulses). In Agam BMT Madani Panampuang 86.4 percent of farmers cultivating
their land with rice plants, and 13.6 percent of the crops.
d.
Purpose
of Use of Credit: At BMT is generally accepted credit loans used to finance
farmers farming. Only a small proportion of farmers that in addition to using
credit for farmers, also to finance trading businesses and family expenses. In
Agam BMT Madani Panampuang 90.1 percent of farmers use loan funds effectively
to the benefit of his farming business, while 9.9 percent more for agricultural
business and family needs. This is a result of business administrators perform
a rigorous selection and supervision of credit usage.
e.
Collateral:
Generally members of the BMT is not absolutely disposable collateral although
some who own land, so that in applying for loans, members are not subject to
collateral requirements. To ensure that members are able to pay the
installments on time, the officials only use a rigorous selection system,
especially regarding feasibility, honesty and good name of members that can be
obtained through the network members.
f.
Capital
Resources: In both BMT, all members of the capital constraints that farmers
face credit loans are the main source of capital. Because they do not have
their own capital, efforts farmers are very dependent on the loan / credit
g.
Procedures
and Requirements for Credit: In getting loans, all the farmers in the BMT no
difficulty. Procedures and credit requirements that must be met relatively
simple and easy to fulfill. Farmers only apply to the management of credit by
filling out the form requirements, has a decent effort, and honesty. Within 7
to 25 days of credit was acceptable farmers. From interviews with farmers, all
farmers feel the procedures and requirements set board is relatively simple and
easy to fulfill.
h.
Credit
Refund System: Credit refund system in BMT is felt by all the farmers are
relatively mild or not burdensome. In Agam BMT Madani Panampuang, credit in
installments every month and a maximum period of 1 (one) year and bears the
cost of borrowing 1 percent a month, plus the loan services of 1 percent of the loan amount as a source of
collective capital institutions. When farmers are in arrears, the board did
persuasive action prior to the street gave verbal warning, then if not
successful caretaker told ninik mamak is concerned, if not managed to pay off
its debts party committee reported to the trustee ellipse, if they have not
paid continue to be reported to the Wali Nagari and when still have not settled
concerned is not served well by a guardian or trustee jorong village to take
care of all the needs of correspondence such as Identity Card (KTP) until the
loan repaid.
i.
Total
Loans: The large amount of loans obtained by farmers from Agam BMT Madani,
which ranges between Rp. 500 thousand - Rp15 million. The loan amount received
by farmers from Agam BMT Madani loans are still felt inadequate, this condition
is caused is still the lack of capital available in the
BMT.
From the aspect of the intended use of credit loans
mostly used for farming, in accordance with the board. But there are still
farmers use a fraction loan for family living expenses because it has no other
sources of funds. From the aspect of capital resources, farmers BMT highly
dependent loans due to limited capital, semenatara of procedural aspects and
credit requirements BMT is generally no difficulty. so is the loan repayment
system, the vast majority did not object.
From the
foregoing, it can be concluded that, UTK in the study area is characterized by
businesses with limited space, there is still a sharecropper, and the business
is seasonal. In terms of business dynamics, depending on the loan, no
collateral, and just being able to access credit sources that do not flower or
flower that is relatively low (12 percent annually) and easy to obtain.
Based on the data obtained, BMT has characteristics
appropriate to the nature and dynamics of UTK above, which includes UTK as the
main target of credit and limited capital, does not require the terms of the
collateral, the loan generally low interest rates, and the procedures and
requirements are easily accessible, the return is relatively mild (according to
the client's ability), fast credit is obtained, and the location is easy to
reach because it is all around customers / farmers and managers usually very
well known by customers that process credit applications quickly be disbursed.
From the
foregoing, it can be concluded that, UTK in the study area is characterized by
businesses with limited space, there is still a sharecropper, and the business
is seasonal. In terms of business dynamics, depending on the loan, no
collateral, and just being able to access credit sources that do not flower or
flower that is relatively low (12 percent annually) and easy to obtain.
4 7. The Role of Social Capital
of the Effectiveness of BMT
Based on the analysis of data
from BMT, it can be concluded that the BMT there are values of social capital, in
the form of shared values, member participation, trust, and financial
contributions, as well as religious values and customs were very instrumental
especially in various aspects activities are analyzed. This is because the BMT
.In the member / community consists of uniform professions (farmers) and always
be directly involved and their willingness and awareness of officials and
citizens to apply religious values and customs in various aspects of the
operations are analyzed.
The above statement is supported by empirical
findings in the field indicate that the role of values of social capital, both in the process of establishment of the institution,
the selection committee and the management of institutions, capital formation, the credit lending
process, as well as monitoring and evaluation always involves the participation of members.
a) Establishment Process Institute
In the process of founding the agency in BMT case,
found the role of values of social capital in the form of shared values and the
participation of members / community, as well as religious values and customs.
The role of these values as basis for the establishment of institutions,
against the background of relatively distinct.
In the meeting agreed to form a group of farmers as
a forum for cooperation among farmers. During research active member not only
of farmers but also from residents of the merchant, so that membership is not
confined only to farmers but also merchants, hotels and restaurants.
Establishment
BMT Madani Panampuang Agam Regent program initiated by Agam district to
establish a BMT one village with a circular 58 of 2008 regent This plan
received the support of all community leaders, traditional leaders. religious
figures, the villages, mosque officials, and youth. Background of the
establishment of this institution to release the people from the shackles of
the moneylenders and middlemen. While the goal to be achieved, among others,
invited residents to use the mosque as a place of deliberation and prayer in
congregation in the mosque, so that people can tithe-donation-shodaqoh, educate
citizens help each other, providing capital loans, educate honest citizens, and
others.
When linked to the values of social capital, then
in the process of establishment of BMT Madani Panampuang Agam there are roles
shared values and the participation of members / community. The role of shared
values shown by the spirit of togetherness and cooperation between citizens /
mosque's congregation with mosque officials, community leaders / religious,
customary density Nagari (KAN), and the village government formed a savings and loan institution in the form of BMT.
Participation of citizens in this case shows the
support and approval of citizens / pilgrims to realize BMT institutions as the
Islamic economic forum. Besides, the role of religious values is reflected in
the use of the mosque as a place of establishment and management of the
institution, avoiding the practice of credit lending with usury system, ziswah
utilization as a source of capital, and promoting prayer in congregation in the
mosque, tithing, berinfaq, and charity.
b) Finalization of the Board and Management of the Institute
In the process of election of the
board and management of the institution, the role of social capital-value
grades encountered in both BMT cases, namely in the form of values BERSA ma,
member participation, and trust, and the role of religious values reflected in
the use of the mosque as a place of election board or management of the
institution.
In Agam BMT Madani Panampuang management election
conducted through consultation of citizens / worshipers at Masjid Raya
Panampuang or in the office BMT Madani Agam attended by residents / pilgrims,
head of KAN, community leaders / religious, youth, overseas residents and
village trustee. Through consultation and mutual agreement BMT committee
entrusted to a few people who mostly act as mosque officials and traditional
leaders. While community leaders / religious / nomads serves as an advisor and
institution builder. The structure of active management is the board consisting
of a chairman, secretary, treasurer, and members. Trustees chairman and members
and managers as managers, tellers and marketing.
Board
formulates policies concerning the rights and obligations of members, then
through meeting various citizen input into consideration. This is done so that
the board decision taken a collective agreement and must be implemented and
complied with all the members without exception.
The rules covering the obligations and rights of
members paa BMT include: (a) pay dues groups in the form of principal savings,
mandatory and voluntary, (b) to repay their loans on time, (c) use the loan
funds as necessary business, (d) attend meeting the institution at least one
time a month, (e) attend a meeting taklim are held once a month alternately in
the mosque, (f) to maintain the good name of the institution, and (g) is
willing to assist other members in doing their business or get into trouble.
The role of member participation
in the election of the board and management of the institution is reflected by
the exclusion of every member in the meeting members' meeting. Members
participate in determining the decision making regarding the selection
committee as well as the rules and policy management of the institution. While
the value of the trust is reflected in the confidence of the members of the
board in managing tenbaga. Besides, the role of religious values in particular
in Agam BMT Madani reflected in the use of the mosque as a place of election of
the board and management of the institution. On board the two agencies have
some who also acts as the caretaker of the mosque and indigenous stakeholders.
b) Capital Formation
Capital formation, the role of social capital
values encountered in BMT case, which includes shared values, participation,
trust, and financial contributions. While religious values encountered in the
form of ziswah utilization as a source of credit and the desire to avoid the
officials and members of the loan with usury system, as well as
awareness-shodaqoh infaq issued. BMT case of a financial institution that is
pure savings come from the public and managed by the community itself
(indigenous institution). For operational and viability of institutions,
agencies tend to rely on internal capital sourced from the pilgrims, residents
and overseas.
The
source of the funding could come from citizens, residents of immigrants, as
well as from members of the borrowed financing. In addition institute also
receives deposits from citizens as a savings fund voluntary and not rewarded
flower / services. Thus the capital accumulation required in BMT member not
participating either in the form of principal savings and mandatory, as well as
charity, donation and sadaqah. when members of the recipient obtaining
financing advantages result from the use of borrowed funds.
In Agam BMT Madani Panampuang for 2012 capital
sources contributed most to the formation of the inclusion of capital is from
the village of Rp 300,000,000, PINBUK Rp 5,000,000 and Rp 3,000,000 Grants
Working Group. Whereas the own funds derived from special primary savings,
savings, compulsory savings, reserves and SHU is not shared by Rp 166 407 548,
- and third party funds amounting to Rp 215 512 438, -.
When
linked to the value of social capital in capital formation, it appears that in
general the members in both BMT case upholds the shared values, beliefs, member
participation, and willingness to contribute in shaping the capital. The role
of shared values are reflected in the spirit of togetherness and cooperation of
members to provide capital resources collectively.
Decisions
about the shape and size of the financial contribution in the form of
compulsory savings, principal, voluntary, grants, loans and fines shodaqoh
services members for formation and capital accumulation defined and decided
jointly between the board and members. While the value of trust and financial
contributions of members reflected their confidence and willingness of members
to the board members to pay a sum of money both savings and shodaqoh. Trust
members of the board, especially in the management of collective capital, in
order to provide the benefit and welfare of all members.
c). Credit Loan Process
In Agam BMT Madani Panampuang
determination lending decisions is the decision of the committee and members.
Members are involved in the consultation meetings to define and decide
pencaiaran loans. This meant that the aspirations of the members can
berakomodir so the decision was taken as a collective agreement.
The
lending process established credit management and members fairly simple and
obeyed by all members. Members who want to borrow loans just fill in the form
of loans that have been provided and submitted to an administrator / clerk. To
foster a sense of trust, honesty, and responsibility as a member of the Muslim,
then the board of the credit lending does not set requirements for collateral.
When linked to the values of
social capital, then in the process of borrowing or credit services, BMT Madani
Panampuang Agam, there is the role of shared values, member participation and
confidence. The role of common values reflected in the spirit of togetherness
and cooperation between management and members, both in defining the procedure
and terms of borrowing, as well as the feasibility of other members. The spirit
of togetherness is a manifestation of the spirit of each member to obtain
credit in a way that is easy and inexpensive, so apart from moneylenders and
middlemen.
The role of social capital in the form of trust is
reflected in the confidence of the members of the board
of the credit lending. Board did not set requirements for collateral in
credit lending, despite the fact that most members own their own land that can be used as collateral. Eligibility
members only rated board of aspects of feasibility, honesty, and trust in the members. While the role of
religious values reflected in the efforts board inculcate honesty (trust) on the member.
d). Monitoring and Evaluation
In monitoring and evaluation
institutions, the role of social capital in the form of shared values and the
participation of members met on the second BMT. These values are used as a
basis to monitor and evaluate the performance of the board as well as the
agencies establish policies and plans ahead.
In Agam
BMT Madani Panampuang monitoring and evaluation activities specifically carried
out by the regulatory body and the builder consisting of village trustee,
nomads figures, community leaders / cultural / religious. While members serve a
monitoring function in general through the right to ask and obtain a good
description of the daily management of the institution through regular meetings
and the accountability of the board regarding the operational and financial
management in the RAT. Monitoring and evaluation activities carried out by
members to participate in both meetings weekly, monthly or RAT, is the
responsibility of all members and implemented by consensus in an atmosphere of
togetherness.
When linked
to the values of social capital, then in monitoring and evaluation activities
on both BMT there is the role of shared values and member participation. Shared
values reflected in the spirit of unity and cooperation among members in
monitoring and evaluating organizational life groups both through regular
weekly meetings, as well as through the implementation of the RAT.
The
spirit of togetherness is a manifestation of a common desire to promote the
group to make it better. Participation of members is reflected in the
involvement and willingness of members attend weekly meetings or RAT. Besides,
each member participates in setting and decision-making, both regarding the
accountability board and planning next year's activities.
Based on the results of upfront analysis showed
that the values of social capital is relatively bigger role vBMT This indicates
that as a source of capital in the countryside BMT involves the participation
of members and the community in every aspect of the analysis. In addition, in
the case of BMT, indicating also that this institution grow based on community
strengths and values of the social capital of the community itself. f). The
policy of the government for BMT
1) Regulatory Aspects
In carrying out its activities as BMT airport
saving and borrowing members, the two institutions have no legal basis and
government operations. This means that both the establishment and management of
the two institutions do not require official permission from the government, so
it is not subject to the rules (surveillance) government. Therefore, both
institutions are classified into IFI shaped BMT.
2) Aspect Capital Assistance
Agam BMT Madani Panampuang ever
get help from the government at the beginning of the establishment of Rp
300,000,000, -. Aid capital received BMT is a capital assistance in the form of
grants. Agam BMT Madani receive grant aid from the Department of Agriculture
and rolling Agam is an agriculture department program Agam.
Grant of
USD 300 million received by the board in 2008 and disbursed in the form of a
revolving credit fund to its members. This assistance is particularly useful to
strengthen capital, thus supporting the effectiveness of credit services to
members. The funds provided in cash for the purpose of agricultural costs and
more productive businesses.
3). Aspects of Development
From the aspect of coaching, from BMT never received coaching program in
the form of education and training.
Education and training have ever received board and members include:
(a)
Integrated
Pest Management Field School (FFS) for the board members. Education is
organized by the Department of Agriculture Agam in 1994. This study aims to
provide knowledge on how to control pests in an integrated manner.
(b)
Farmers
Training Guides (Kader). The training was organized by the Department of
Agriculture Agam in 1996. This training aims to provide knowledge and skills to
farmers as a cadre that can foster other farmers.
(c)
Training
of Agriculture. The training was organized by the Department of Agriculture
Agam 2002. This training aims to provide knowledge and skills to the board and
farmers on agricultural cultivation
techniques.
Various training over a positive impact both
management and members, especially in improving the knowledge and skills to
eradicate crop pests, cultivation of agricultural crops, as well as the group
has a reliable cadre of farmers by farmers in the villages around. Government
assistance in the form of grants and training helpful BMT in additional capital
and knowledge management, but it is fundamentally BMT operational activities
are not affected by government intervention. This can be seen in particular
4.8 The role of the BMT as a
Source of Capital for UTK Regional Research
The effectiveness of BMT role in serving the credit
needs of UTK in the study area. The analysis focused on identifying the factors
that led to the persistence of Financial Institutions Informal / Self Help
Groups (BMT), both from the aspect of the role of financial institutions, the
nature and dynamics of farming, social capital and religious values,
traditional values and the role of policy government.
From the aspect of the effectiveness of the role of
institutions, the existence and role of BMT is intended to serve UTK. Credit
services carried out by the agency with the administrative procedures and
requirements are relatively simple and straightforward and in accordance with
the rules / norms or the characteristics of small farms that process is quick,
low interest rate (12%) per year and there is no requirement of collateral, as
well as payment systems credit felt very simple and easy.
Ease of
credit services at BMT is inseparable from the role of values of social capital
in the form of shared values, participation and confidence. Shared values and
participation underlying the establishment of a system of borrowing and loan
repayments. Each member involved in regular meetings (weekly, monthly) and the
annual meeting (RAT), especially in formulating the rules of borrowing and loan
repayments with on the basis of the spirit of togetherness and cooperation
between management and members. While the value of the trust is reflected both
on the confidence of the members of the board and vice versa.
The provision of capital, causing the perception
among members that these institutions belong to the
government so that all the rules and procedures of the loan must follow
the procedures outlined by the government. In the case of lending to BMT for example, the loan must be
preceded by a proposal from farmer groups, then approved by farmer groups and submitted to the sub-district
agricultural office for approval lending.
From the above it can be concluded that there are three important
factors that cause BMT can survive and play an
effective role in a rural airport FOR namely:
a). The element of trust.
The nature of mutual trust between the member and the lead manager of
BMT is easily accessible by UTK for cooperation and mutual trust based on the
suitability of the characteristics of the institutions with the characteristics
of farming. Characteristics of institutions characterized by UTK as the main
target of credit services, procedures and administrative requirements are
relatively simple, do not apply the collateral, repayment system is relatively
lightweight and flexible, and easy to reach location.
b). Effectiveness
Network.
A network of cooperation among members resulting in
effective credit services at BMT sehinbgga credits obtained useful by UTK both
credit needs and increase revenue This is in addition determined by the
procedures and requirements of easy administration, refund system that is
lightweight and flexible, and no requirement of collateral. also by. the role
of the board in managing and supervising the use of credit as well as to
motivate members to participate in promoting community-owned institutions to
support the agricultural development process.
c). Elements Norma
Activity BMT, especially the
establishment of institutions, borrowing and loan repayments, and the
mobilization of internal capital based on the values of social capital through
mutual no trust between management and members, the formation of a network of
cooperation that led to the high level of participation of members of the
development and sustainability of the institution, as well as adherence to
norms set together, a contributing factor to the growth of local groups (BMT)
independently and sustainably
The role
of the values of social capital in the system of credit services at BMT in the
form of shared values, participation and trust in the institution activities.
Shared values and participation underlying the establishment of a system of
borrowing and loan repayments. While the traditional values also reflected in
the sense of helping fellow members (kids lap dibimbiang nephew, urang kampuang
dipatenggangkan), maintain the honor and dignity of the family (chic-chic nan
mamanjek urang under jatuah kok).
Based on
the above it can be said that the BMT credit service system has been grounded
in social values without neglecting the economic aspects (Social and Economic
Perspective). But there are still limited in collective capital accumulation.
Besides, the existence and role of the BMT as a source of capital for UTK in
the countryside is not only oriented to meet the credit needs of farmers, but
at the same time develop the independence and sustainability of the institution
through internal capital mobilization in the form of collective capital and
ziswah.
4.9. Financial Institutions
Effective Model for Small Farms.
Based on the analysis in advance, acquired some of
the basic elements that make up the construction of an effective financial
institution for the UTK. The basic elements were obtained from four aspects
analyzed that aspect of the effectiveness of the role of financial institutions
and the dynamic nature of farming, the role of social capital sertta the role
of government policy.
From the aspect of the role of
financial institutions, financial institutions that are effective for UTK
determined by methods / ways Yag should be done by the board include:
a)
Starting
from mutual trust between the manager and members by making a working system of
mutual benefit between pengeloloa and members. This situation will lead to
mutual trust, sympathy, mutual participation and sense of belonging to the
institution.
b)
The
formation of networks between the board and members are constituted by a sense
of kinship, kebertemanan, and kebertetanggan and daily activities will
facilitate communication and make it easier to solve the issue of the group /
institution, eventually in addition to causing operational cost will be lower,
will also get more accurate information.
c)
Establishment
of rules / norms institution in accordance with the characteristics of the
local community, will make it easier to apply the rules of the institution and
will increase member adherence to the norms / rules themselves.
Based on the above, it can be formulated principles
of effective models of financial institutions to UTK in the countryside. First,
financial institutions effective UTK UTK ideally have stood for in the form of
characteristic suitability and effectiveness of credit services. Second,
financial institutions should ideally have the independence and sustainability
through mobilizing internal capital so as to meet the credit needs, and ensure
the availability of capital resources without relying on external capital
mobilization. The element of social capital becomes the basis for running the
activities of financial institutions and government policies in support of
capital can give confidence to local bodies without intervesni management.
Criteria such as the above-mentioned institutions studied, the BMT Madani Agam
is a financial institution which is suitable to be developed as a rural financial
institutions.
5. Conclusion
From the above it can be
concluded that there are three important factors that cause BMT can survive and
contribute effectively to serve UTK in the countryside and the impact on
agricultural development in the area of research a confidence element
a.
Mutual
respect. The nature of trust between members with members and between members
of the board resulted in the formation of a network that enables the formation
of mutually beneficial cooperation between members in achieving common goals.
These conditions affect the suitability of the characteristics of the
institution with the characteristics of the nature and dynamics of UTK cause
BMT is easily accessible by UTK.
b.
Elements
Network. Networking between the manager and members of the mutual trust created
Atasa adasar lead to effective collective capital raising and lending in BMT.
This is in line with the opinion of Fukuyama (1995), that the application of
high social capital (trust, networks and norms) causes the community to easily
resolve the problem and simultaneously reduce operating expenses.
c.
Elements
Norma. From the aspect of the rules / policy of the government, the upfront
analysis showed that BMT has no dependence on the government, so it is able to
exist and contribute to UTK.
Based on these results npenulis recommend THAT
effective for financial institutions for the
Development of agriculture in rural areas is to
include elements of social capital in one pesyaratan disbursement of credit to
customers who are in rural areas whose livelihood is in the agricultural
sector.
References
Acharya. M, Shrestha.B, and Seibel.H.D. 1992. Self
Help Groups in Nepal, in the Self Help as informal intermediaries. B.R.
Quinones Jr.Ed. 1992, Bangkok, Thailand: APRACA Publication.
Muchtar Ahmad et al, 1991. Institutional Agriculture and Poverty in
Riau, Riau Pergepi Commissariat.
BPS, 2012, the Human Development Index 2009-2010, Jakata: BPS.
Cernea, M.M. 1993. The Sociologik's Approach to
Sustainable Development. Finacial & Development, December 11 to 13
Coleman, J. 1988. Social Capital
in the Creation of Human Capital. American Journal of Sociology 94: S05-S120.
Cox, Eva. 1995. A. troly Civil Society, Sydney: ABC Book.
Dasgupta, P. and Ismail Serageldin, eds., 1999. Social Capital: A
multifaceted Perspective. Washington DC:
World Bank.
Dhesi, U.S., 2000, Social Capital a Fukuyama, F. 1995. Trust: The Social
Virtues and the Creation of Prosperity.
New York: Free Press.
Fukuyama,
F. 1995. Trust: The Social Virtues and the Creation of Prosperity. New York:
Free Press. Fukuyama, F. 1999. Social Capital and Civil Sociaty, Institute of
Public Policy, George Mason University. Fukuyama, F. 2002. Social Capital and
Civil Socciety. International Monetary Fund Working Paper, WP / 00/74
1-8 In Elinor Ostrom an T.K. Ahn. 2003 Foundation
of Socil Capital. Massachusetts: Edward Elgar Publising Limited
Gemmel, N, 1994. Science Development Economics; Multiple Survey Jakarta:
Pustaka LP3ES.
Georgi, B.P. 2003. The Role of
Human and Social Capital: Extending our Understanding, Department of Economic,
University of the Witwatersrand (unpublished paper). © Pages in Agro Economic
Journal Vol.11. 1 June 2004 (Page 77-86)
Hamid E.S..1986. Records of the
Seminar. In the Rural Credit in Indonesia. Mubyarto and Edy Suandi Hamid (Eds)
.Yogyakarta: BPFE.
Hayami, Y. and Vernon W. Ruttan,
1971. Desequilibrium in World Agriculture Development in Agriculture
Development: An International Perspective, Baltimore and London: The John
Hopkins University Press.
Hayami, Y. and Masaro Kikuchi. Jakarta: Yayasan Obor Indonesia.
Tidak ada komentar:
Posting Komentar