Farmer Satisfaction with Financing Services at Sharia Microfinance Institutions Agribusiness (Sharia MFI-A)

Authors

  • Widya Fitriana Social Economic of Agriculture, Universitas Andalas, West Sumatera, Indonesia

DOI:

https://doi.org/10.21111/iej.v10i1.11830

Abstract

The total share of financing for the agricultural sector from financial institutions in Indonesia is still relatively low. It is because the agriculture sector is considered high-risk and not bankable. Even though the demand for financing from the agricultural sector is very high. Sharia MFI-A is a financing institution friendly to farmers because it has Sharia principles and shares risks. The loyalty of its customers determines the sustainability of this business. Service quality and customer expectation are affect customer satisfaction. This study aims to analyze service attributes considered necessary by customers and customer satisfaction to financing services at Sharia MFI-A. This research was conducted in West Sumatra, a province famous for its local principles of “Adat basandi sayarak, syarak basandi kitabullah”. The research was conducted on Sharia MFI-A namely in Agam Regency. The respondents were farmers who received financing in 2022. Five variables were observed: tangible, reliability, responsiveness, assurance, and empathy and measured using the Likert scale. Data analysis used Importance Performance Analysis (IPA) and Customer Satisfaction Index (CSI). The results showed that CSI’s score on Sharia MFI-A services is 88.28%, including the range of very satisfied criteria. Customers expressed very satisfaction with the performance of Sharia MFI-A services because the office is clean and comfortable, fast and friendly service, guaranteed customer confidentiality, and proft sharing transparency. This is by the principles of sharia services, namely fairness, and honesty in transactions ('adl wa tawazun), maslahah, and does not contain gharar and riba. Customer satisfaction with the services will affect farmers' loyalty to utilizing financing services from Sharia MFI-A in the future.

References

Agyei-Boapeah, Henry, Stella Adu-Boakye, Joseph Amankwah-Amoah, and Jennifer Brodmann. “Customer Satisfaction in Microfinance Institutions: Insights from Ghana.” Enterprise Development and Microfinance, Vol. 31, No. 3, (2020). https://doi.org/10.3362/1755-1986.19-00016.

Ahmad, Saikhu. “Pengaruh Kualitas Pelayanan terhadap Kepuasan Nasabah di Lembaga Keuangan Mikro Agribisnis (LKMA) Syariah Amanah Mandiri Bagor Kabupaten Nganjuk.” Jurnal Dinamika Ekonomi Syariah, Vol. 7, No. 1, (2020). http://ejurnal.iaipd-nganjuk.ac.id/index.php/es

An, Chaofan, Xiaoxia He, and Lin Zhang. “The Coordinated Impacts of Agricultural Insurance and Digital Financial Inclusion on Agricultural Output: Evidence from China.” Heliyon, Vol. 9, No. 2, (2023). https://doi.org/10.1016/j.heliyon.2023.e13546.

Darwanto, Fuad Mas’ud, Maruto Umar Basuki, Edy Yusuf Agunggunanto, and Jaka Isgiyarta. “Transaction Costs of Small Micro Enterprises (SMES) Financing in Sharia Microfinance Institution.” International Journal of Mechanical Engineering and Technology, Vol. 9, No. 5, (2018). http://iaeme.com/Home/issue/IJMET?Volume=9&Issue=5.

Fitriana, Widya. “Lembaga Keuangan Mikro Syariah: Eksistensi dan Aksesibilitasnya bagi Pembiayaan Usaha Tani di Sumatera Barat (Studi Kasus: Koperasi Jasa Keuangan Syariah (KJKS) Baitul Maal Wat Tamwil (BMT).” Jurnal Agribisnis Indonesia, Vol. 4, No. 2, (2016). https://doi.org/10.29244/jai.2016.4.2.149-162.

Gichuki, Castro N., and Charles Wambu Kamau. “Financing Agribusiness: Potential Determinants of Financial Inclusion for Smallholder Rural Farming Communities in Kenya.” International Journal of Rural Management, Vol. 18, No. 3, (2022). https://doi.org/10.1177/09730052211034350.

Hadi, Rahmini. “Transformation and Implementation of Sharia Principles in Management of Rural Agribusiness Business Development Programs.” Ijtimā Iyya Journal of Muslim Society Research, Vol. 3, No. 2, (2018). https://doi.org/10.24090/ijtimaiyya.v3i2.1944.

Isaga, Nsubili. “Access to Bank Credit by Smallholder Farmers in Tanzania: A Case Study.” Afrika Focus, Vol. 31, No. 1, (2021). https://doi.org/10.1163/2031356x-03101013.

Ismail, Z, A.E Nugroho, L Adam, N Listiani, Y Saptia, Purwanto, and B Kristianto. Peranan LKM Non-Bank dalam Pembiayaan Usaha Mikro. Ed. M. Kadapi. Jakarta: LIPI Press, 2014.

Jeany, Mauli Siagian. “Pengaruh Kualitas Pelayanan dan Kepuasan Nasabah terhadap Loyalitas Nasabah pada BPR Artha Prima Perkasa.” Ilmiah Manajemen Bisnis Dan Inovasi Universitas Sam Ratulangi (JMBI UNSRAT), Vol. 7, No. 3, (2020).

Jou, Rong Chang, and Yeong Jia Day. “Application of Revised Importance-Performance Analysis to Investigate Critical Service Quality of Hotel Online Booking.” Sustainability (Switzerland), Vol. 13, No. 4, (2021). https://doi.org/10.3390/su13042043.

Junaedi, Dedi, and Muhammad Rizal Arsyad. “Kajian Motif Pemilihan Skema Pembiayaan LKMA PUAP di Jawa Tengah.” El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam, Vol. 3, No. 1, (2020). https://doi.org/10.47467/elmal.v3i1.298.

Kusumaningtyas, Putri, and Heny Kuswanti Daryanto. “Analisis Kinerja Keuangan dan Kepuasan Nasabah terhadap Pelayanan Lembaga Keuangan Mikro Agribisnis (LKMA) ‘Rukun Tani’ di Kabupaten Bogor.” Forum Agribisnis, Vol. 2, No. 1, (2012). https://doi.org/10.29244/fagb.2.1.69-90

Martilla, J.A, and J.C James. “Importance-Performance Analysis.” J. Mark, 41, No. 1 (1977). https://doi.org/10.1177/002224297704100112

Pemkab Aceh Barat. “Peranan Program Pengembangan Usaha Agribisnis Pedesaan (PUAP) terhadap Peningkatan Pendapatan Petani.” Aceh, 2018.

Ratnasari, R.T. Manajemen Pemasaran Jasa: Teori dan Kasus. Bogor: Ghalia, Indonesia, 2016.

Raza, Ali, Guangji Tong, Furqan Sikandar, Vasilii Erokhin, and Zhang Tong. “Financial Literacy and Credit Accessibility of Rice Farmers in Pakistan: Analysis for Central Punjab and Khyber Pakhtunkhwa Regions.” Sustainability (Switzerland), Vol. 15, No. 4, (2023). https://doi.org/10.3390/su15042963.

Rebecca, Nyonyintono, and Musoke Henry. “Non-Financial Controls and Customer Satisfaction in Microfinance Institutions Focusing on Wakiso District, Uganda.” International Journal of Research in Education Humanities and Commerce, Vol. 2, No. 1, (2021). http://www.ijrehc.com.

Rusli, Moch. “The Analysis of Generation Z’s Perception in Decisions on Selection of Islamic Banking Service.” Riwayat: Educational Journal of History and Humanities, Vol. 6, No. 2, (2023). https://doi.org/10.24815/jr.v6i2.31656.

Shkarupa, Ekaterina. “Development of Financial Inclusion of Agricultural Producers.” Regionalnaya Ekonomika. Yug Rossii, Vol. 9, No. 3, (October 2021). https://doi.org/10.15688/re.volsu.2021.3.15.

Supriyanto, Achmad, Bambang Budi Wiyono, and Burhanuddin Burhanuddin. “Effects of Service Quality and Customer Satisfaction on Loyalty of Bank Customers.” Cogent Business and Management, Vol. 8, No. 1, (2021). https://doi.org/10.1080/23311975.2021.1937847.

Veesar, Ghulam Yaseen, Mustaghis-ur-Rahman, and Masood Hassan. “A Comparative Study of Customers Satisfaction of Microfinance in Sindh, Pakistan.” Global Management Journal for Academic & Corporate Studies, Vol. 10, No. 1, (2020). View of A Comparative Study of Customers Satisfaction of Microfinance in Sindh, Pakistan (bahria.edu.pk)

Yuniarti, Dini, and Arif Sapto Yuniarto. “Determinants of Credit in Indonesia’s Agricultural Sub-Sector: Panel Data Analysis.” Optimum: Jurnal Ekonomi dan Pembangunan, Vol. 11, No. 1, (2021). https://doi.org/10.12928/optimum.v11i1.3570.

Zakariya, Mukhamad. “Peran Lembaga Keuangan Mikro Agribisnis (LKM-A) Amanah Mandiri Syari’ah terhadap Kelompok Tani di Desa Sekarputih Kecamatan Bagor Kabupaten Nganjuk.” Jurnal Dinamika Ekonomi Syariah, Vol. 6, No. 2, (2019). https://doi.org/10.53429/jdes.v6i2.17.

Zhao, Na, and Fengge Yao. “Innovative Mechanism of Rural Finance: Risk Assessment Methods and Impact Factors of Agricultural Loans Based on Personal Emotion and Artificial Intelligence.” Journal of Environmental and Public Health, 1, (2022). https://doi.org/10.1155/2022/1126489.

Downloads

Published

2024-06-22

Issue

Vol. 10 No. 1 (2024)

Section

Articles

License

Copyright (c) 2024 Islamic Economics Journal

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.