Effect of Investment in Islamic Commercial Banks, Sharia Business Units and Sharia Rural Bank in Agriculture on Indonesian Food Security
Nadia Fazira
Faculty of Economy and Islamic Business, State Islamic Institute of Bukittinggi
Abstract
Continuing the efforts and achievements of the MDGs that have changed the face of the world towards a better direction, in 2015 OECD countries launched the SDGs agreement. One of the SDGs targets is the achievement of food security in a country. This study aims to analyze the effect of investment in Islamic Commercial Banks, Sharia Business Units and Sharia Rural Bank through financing programs in agriculture on Indonesian food security measured through rice production. The data used are panel data consisting of 33 provinces in Indonesia from 2014 to 2017 and estimated using common effect method. The estimation results show that the financing program of Sharia Commercial Banks and Sharia Business Units in agriculture significantly affecting rice production by 6.7 percent. Then the Sharia Rural Bank financing program in agriculture is significantly positive affecting rice production by 4.2 percent. Variable of labor in agriculture and land area also has a positive effect on rice production both in the Sharia Commercial Bank program, Sharia Business Unit and Sharia Rural Bank. While variable of fertilizer subsidies has no effect on rice production.
Keywords: Islamic Commercial Banks; Sharia Business Units; Sharia Rural Bank, Financing, Food Security
Topic: Islamic Finance and Banking