Explaining Farmer’s Contract in Legundi, Ngawi Region: Agency Theory and Sharia Perspective
Abstract
Contracts are a condition for the emergence of cooperation in economic activity. In the agricultural sector, farmers' cooperation contracts will affect the distribution of income, which in turn will also affect their level of welfare. Cultivation of rice fields in Legundi Village, Karangjati Subdistrict, Ngawi Regency is carried out in the form of a cooperation contract involving the owners of the fields, the cultivators of the fields and farm laborers. This study aims to explore the existence of these contracts using the perspective of institutional economics and Islamic economics. The institutional perspective aims to identify the principal-agent position and analyze contractual problems arising from the employment relationship with agency theory indicators. While the perspective of Islamic economics aims to analyze how the form of the contract conforms with Islamic legal indicators. In this study, data collection procedures were carried out through interviews with respondents involved in all aspects of the rice cultivation cooperation contract. Data analysis begins by identifying the contract then analyzing the contractual issues. The contract identification results show that from an institutional perspective, the principal agent of the contract actors is the owner of a pure rice field or a rice field owner who doubles as a cultivator of a paddy as a principal. Based on sharia perspective this study found two forms of cooperation, namely ijarah which consists of ijarah 'ala al-a'yan and ijarah' ala al-a'mal and mukhabarah. The results of the analysis of the contract problem show that from an institutional perspective there is a moral hazard found in the production sharing contract, conflicting objectives in the lease contract, and adverse selection between the farmer group and Bulog. From the perspective of sharia there is an unclear risk of crop failure, lack of awareness of paying zakat mal, and the emergence of the risk of mutual suspicion in the mukhabarah.
Keywords: Agency Theory, Farmer’s Contract, Sharia Perspective
References
[1] Khallaf, A.W. (1994). Ilmu Ushul Fiqh. Terjemahan Moh. Zuhri dan Ahmad Qarib. Semarang: Toha Putra Group.
[2] Ahmad, I. (1986). Fiqh al-Syafi’iyah. Jakarta: Karya Indah.
[3] Arrow, K. J. (1985). The Economics of Agency in Principals and Agents. Boston: Harvard Business School Press.
[4] Badan Pusat Statistik. (2014). Tabel Statistik Luas Luas Lahan Sawah Menurut Provinsi (ha) 2003-2015. Retrieved from https://www.bps.go.id/linkTableDinamis/view/id/895.
[5] Denzin, N.K and Lincoln, Y.S. (1994). Handbook of Qualitative Research. London: Sage Publication.
[6] Djazuli, A. (2010). Kaidah-Kaidah Fikih: Kaidah-Kaidah Hukum Islam Dalam Menyelesaikan Masalah-Masalah yang Praktis. Jakarta: Kencana.
[7] Fatwa DSN-MUI No. 112/DSN-MUI/IX/2017.
[8] Furqan, M. (2016). Pengaruh Prinsip Al-Muzara’ah dan Al-Mukhabarah Terhadap Perjanjian Bagi Hasil Pertanian (Studi di Kecamatan Semadam Kabupaten Aceh Tenggara). Premise Law Jurnal, vol. 1, issue 9, pp. 1-17.
[9] Furubotn, E. and Ritcher, R. (2000). Institutions and Economic Theory: The Contribution of the New Intitutional Economics. Michigan: The University of Michigan Press.
[10] Goel, S. A. K. (2003). Contract Farming Ventures in India: A Few Successful Cases. In V. Singh (Ed.), SPICE.
[11] Hanafie, R. (2010). Pengantar Ekonomi Pertanian. Yogyakarta: Andi.
[12] Haroen, N. (2000). Fiqh Muamalah. Jakarta: Gaya Media Pratama.
[13] Hasan, A. (2006). Zakat dan Infak: Salah Satu Solusi Mengatasi Problema Sosial di Indonesia. Jakarta: Prenadamedia.
[14] Iskandar, R. M. and Lisa, R. (2010). Analisis Data Kualitatif Model Miles and Huberman. Jakarta: Fakultas Teknik Program Magister Pendidikan Kejuruan Universitas Negeri Padang.
[15] Klein, B. (1980). Transaction Cost Determinants of “Unfair” Contractual Arrangement. The American Economic Review, vol. 70, issue 2, p. 356.
[16] Oliver Hart and Bengt Holmström: Contract Theory. (2016). The Royal Swedish Academy of Sciences. Retrieved from https://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2016/advanced-economicsciences2016.pdf.
[17] Jensen, M. C and Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Cost and Ownership Structure. Journal of Financial Economics, vol. 3, issue 4, pp. 305-360.
[18] Leksono, S. (2013). Penelitian Kualitatif Ilmu Ekonomi. Malang: PT Rajagrafindo Persada.
[19] Miller, N. (2005). Notes on the Principle-Agent Problem. Massachusetts: Harvard University Press.
[20] Mallor, J. P., et al. (1998). Business Law and Regulatory Environment; Concept and Cases. New York: Irwin McGraw-Hill.
[21] Mardani. (2014). Hukum Bisnis Syariah. Jakarta: Prenadamedia Group. Manan, A. 2011. Hukum Ekonomi Syariah Dalam Perspektif Kewenangan Peradilan Agama. Jakarta: Prenanda Media Group.
[22] Moleong, L. (1996). Metodologi Penelitian Kualitatif. Bandung: Remaja Rosdakarya.
[23] Manzilati, A. (2011). Kontrak Yang Melemahkan. Malang: UB Press.
[24] Nawawi, I. (2019). Ekonomi Kelembagaan Syariah Dalam Pusaran Perekonomian Global Sebuah Tuntutan dan Realitas. Surabaya: Putra Media Nusantara.
[25] Peraturan Menteri Pertanian Nomor: 273/Kpts/Ot.160/4/2007.
[26] Petunjuk Pelaksanaan Penyediaan dan Penyaluran Pupuk Bersubsidi Tahun Anggaran 2018.
[27] Prasetya, F. (2012). Modul Ekonomi Publik Bagian III: Teori Informasi Asimetris. Malang: Fakultas Ekonomi dan Bisnis Universitas Brawijaya.
[28] Pratama. (2015). Peran Zakat dalam Penanggulangan Kemiskinan: Program Zakat Produktif pada Badan Amil Zakat Nasional. The Journal of Tauhidinomics, vol. 1, issue 1, pp. 93-104.
[29] Primada & Zaki. (2015). Tinjauan Mekanisme Kontrak Pengelolaan Lahan Pertanian Berbasis Adat Istiadat Dalam Kajian Fiqh Muamalah (Desa Temu, Kecamatan Kanor, Kabupaten Bojonegoro). JESTT, vol. 2, issue 11, pp. 954-969.
[30] Profil Desa dan Kelurahan 2016.
[31] Priyadi & Shidiqie. (2015). Pelaksanaan Perjanjian Bagi Hasil Pertanian Lahan Sawah Studi di Kecamatan Gamping, Kabupaten Sleman, Yogyakarta. Millah Jurnal Studi Agama, vol. 15, issue 1, pp. 102-115.
[32] Putra, N. (2013). Penelitian kualitatif IPS. Bandung: Rosda.
[33] Rifqi, M. (2016). Teori Kontrak dan Nobel Ekonomi 2016. Majalah 1000guru.
[34] Rozalinda. (2017). Fikih Ekonomi Syariah. Jakarta: Rajawali Pers.
[35] Suhendi, H. (2014). Fiqh Muamalah. Jakarta: Raja Pers.
[36] UU No. 2 Tahun 1960.
[37] Vardiansyah, D. (2008). Filsafat Ilmu Komunikasi: Suatu Pengantar. Jakarta: Indeks.
[38] Varian, R. H. (1993). Intermediate Microeconomics: A. Modern Approach. New York: W.W. Norton Company.
[39] Yeager, T. J. (1999). Institutions, Transition Economies, and Economic Development. Political Economy of Global Interdependence: Oxford.
[40] Yustika & Baks. (2015). Konsep Ekonomi Kelembagaan: Perdesaan, Pertanian dan Kedaulatan Pangan. Malang: Empatdua.
[41] Yustika, A.E. (2012). Ekonomi Kelembagaan: Paradigma, Teori dan Kebijakan. Jakarta: Erlangga.