Abstract
The agricultural sector is a sector that has a strategic role in economic development in Indonesia. However, the agricultural sector has several problems such as less secure of farmers’ welfare, low access to capital and marketing of crops. The existence of farmers’ groups and Sharia Microfinance Institutions (LKMS) has not been able to optimize the potential of the agricultural sector. The purpose of this study is to formulate a strengthening model from institutional aspects through local farmers’ groups and capital strengthening through the inter mediation of Sharia Financial Institutions (LKS) through a linkage program. The model of institutional strengthening of farmers’ groups and capital of LKS financing can be one of the foundations of national economic development. This study used a qualitative approach. Data were collected from the results of in-depth interviews, focus group discussions (FGD) and questionnaires. This study examines: (1) strengthening of farmers’ group institutions; (2) development of the agricultural sector financing model through inter mediation between local LKS and LKMS and linkage programs between farmers’ groups and LKMS
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