The World Bank reported that global poverty rates continued to fall from 1.25 billion people in 1990 to 985 million people in 2004. This estimation based on the proportion of people living on less than $1 a day. However, it was predicted two-dollar-a-day poverty are falling too, almost half the population of the developing world, were still living below that level in 2004 ( World Bank; 2007) 1. Moreover, a large number of the poor lived in Muslim majority countries as presented in figure 1 and 2 (Ahmed, 2004). Major Muslim countries have poverty range from 10% to more than 50%.
Most of this improvement has occurred in East and South Asia (Chen and Ravallion, 2007). In East Asia the World Bank reported that "The poverty headcount rate at the $2-a-day level is estimated to have fallen to about 27 percent [in 2007], down from 29.5 percent in 2006 and 69 percent in 1990” (World Bank, 2007).
It is arguable that the successful developing countries performance to reduce poverty incidence because of high growth as indicated highest growth in China give huge contribution for low number of poor people in East Asia. High growth may as necessary factor but it is not sufficient to raise poverty. The World Bank also reported that;
“poverty reduction was not always or everywhere commensurate with income growth. In some countries and regions, inequality worsened, as poor people did not reap the fruits of economic expansion, because of a lack of job opportunities, limited education or bad health”
Turning to the countries performance, Indonesia experience for poverty level may have fallen back to its pre-crisis level (from 17.47% in 1996 to 3.43% in 1999), and the fact that it has not fallen further is partly because economic growth has been slow (UNDP, 2004). However, dynamic poverty may exist for period after crisis (2000 – 2007). In 2005 poverty rate reached lowest rate at 15.97%, but in 2006 there is dramatic shape when poverty rate jump up into 17.75%. High inflation for staple commodities become important reason for many people to entry below poverty line (BPS, 2007).
Islam, being a religion of balance, has given equal emphasis on both the spiritual and worldly affairs (Chapra, 1980,). In Islam, poverty is assumed to have been eradicated when the basic minimum level of living for everyone has been satisfied. This concept could be absolute when looked at in terms of the fixed amount of basic materials needs that have to be satisfied. However, as was discussed earlier, Islam does not advocate a fixed level of poverty that applies to all. The concept of poverty in Islam is broader than food and services basis. Moreover, Rahman (1974) (as cited in Ahmed, 2004) asserts that in Islam, individuals can improve their spiritual lives by improving their material life. Thus, attacking poverty becomes an oblique for Muslim. With regards to this point, it is believed that the social transfer that is promoted by religious institutions might contribute to reducing the number of poor people in those countries. Zakah is one of the fundamentals of Islam that has direct economic implications. It requires Muslims to distribute a part of their wealth among the specified heads in order to alleviate poverty and achieve economic emancipation (Ahmed, 2004). However, as Ahmad (2000) stated the Zakah do not belong to the state's public revenues nor do they belong to the sovereign revenue of taxes in the state budget. Zakah is a recognized right of those deserving it in the assets of the Muslims. Therefore, Zakah and the increasing up wealth is a question of profound significance to an Islamic economy and public finance (Ahmad, 2000).
Al Quran and Al Hadith dictate that zakah is one of the pillars of Islam and people are obliged to pay zakah. While zakah is compulsory, Islam also encourages people to participate in other kind of voluntary charity activities. These voluntary charities include sadaqa, waqaf and hibah. Existing theoretical studies on zakah focus mainly on the fiqhi (juristic) aspects. Among the popular aspects are collection and distribution of zakah by the state, the imposition of zakah on new wealth and the levying of zakah on income. However there is lack of empirical research done on the real experience of people who are paying zakah. Zakah institutions should play an influential factor in motivating Muslims to pay zakah. Thus this paper aims to understand the roles of zakah institutions in enhancing zakah collection.
Some Facts about the Indonesian Agricultural Sector
Agriculture is a sector that is very strategic because it involves various joints of human life. For Indonesia as an agricultural country, agriculture has a great significance for many reasons. First, the basic human needs, especially food and clothing come from agriculture. Food, vegetables, fruits, food industry ingredients can only be met from the field of agriculture. In addition, a variety of processed materials for clothing, rubber, fiber and so on generated by the industry also needs raw materials from agriculture. Politically, countries that do not actually have a basis of life in agriculture has a very large degree of dependence from other countries because the supply of foodstuffs and agricultural raw materials derived from an agrarian country. Thus the existence of agriculture greatly determine the sustainability of human life. Shocks to the agricultural sector can impact on economic sectors, political, social and even cultural. Secondly, Indonesia has a wealth of germplasm (genetic resources) the second largest after Brazil, but their utilization is not optimal. Besides human resources in Indonesia is very large (population no. 6 in the world). Currently, Indonesia is the third largest rice producer in the world's sixth-largest cereal producer in the world, 2nd in the world, the two palm oil producers in the world, producing 4th in the world, and so on. This shows the potential of Indonesia as a very large producer of agricultural products. With the increased capabilities of human resources, development opportunities and exploration of natural resources is still very open. Third, the growth rate of world population (including Indonesia) are very fast is a huge market opportunity for Indonesia's tropical agriculture. With its potential, Indonesia opportunity to dominate the market of agricultural products is very open so as to have the bargaining position (bargaining possition) is high compared to other countries. Fourth, the agricultural sector has proved able to cope with shocks when the multidimensional crisis, while other areas experienced a significantshock
However, amid the vast potential of agriculture in Indonesia, it turns out that potential benefits do not produce as expected. The data prove that the agricultural sector is a sector which contributes less than the industry sector in 2010 is about 15.3% to 2.9% growth. Even Bank Indonesia estimate the contribution of the agricultural sector will still be low in supporting national economic growth in 2011 and 2012. Bank Indonesia predicts economic growth in 2011 reached 6.0-6.5 percent and in 2012, the records must be supported by strong investment and domestic consumption and supported by a solid external performance.
If further analysis, which became a major problem in increasing the growth of the agricultural sector is limited capital. Lack of capital makes it difficult to move farmers to increase their business scale. Although, agricultural employment to 38% in 2010, but it does not guarantee an increase in the rate of growth in the agricultural sector as one of them is limited capital. Sebernarnya some institutions have tried to be a solution to this problem, ranging from Farm Credit, Credit for the People, and so on. Unfortunately, it turns out these programs have not been able to accommodate the needs of the agricultural capital of Indonesia. The banking sector is also trying to enter this real, but the bureaucracy is cumbersome and does not fit with the atmosphere in the agricultural sector, which inhibits the flow of funds itself, whereas the agricultural sector have different business characteristics with other sectors. Consequently, only farmers who have mastered the market that successfully obtain additional capital.
Urgency Entrepreneurship in Agricultural Resource Development
As already stated above, that the agricultural sector an enormous potential, able to absorb labor up to above 30%. However, other than because of limited capital, knowledge capital management is also an obstacle for the agricultural sector itself. Lack of education facilities continue to be a barrier for farmers to develop their business. From this, the authors conclude that the character of the entrepreneur becomes something very important. Growing community mental-mental to become entrepreneurial through management of agrarian resources.
Triangular Elements of Life
Entrepreneurial figure who is able to advance the nation needed also figure based on the spiritual. So that entrepreneurial activity is more meaningful and sincere. The balance between these three elements are combined with the entrepreneurial life can be used as the basis for tackling the problems facing Indonesia. Entrepreneurial spirit of independent, skilled, and creative in agriculture to describe the natural factors combined with a social life that describes the human factors and aimed to obtain the blessing of God Almighty.
Revitalizing the Role of Zakah Institutions for Development of Indonesian Agriculture Sector in the framework of poverty reduction through Agropreneur’s Dormitory
From the above analysis, the authors formulate a new method to solve the problems that inhibit the growth and development of agrarian resources sector, which is revitalizing the role of zakah institutions not only as a distributor of charity but also as a trigger and educator of human resources in the agricultural sector to become entrepreneurs non-entrepreneurs have the capital base but mentally on the basis of the opportunity by creating a Farmers Community.
Agropreneur's Dormitory is an educational program that combines the spiritual, social, and entrepreneurship to optimize the potential of human resources in the agricultural sector.
Platform of Agropreneur’s Dormitory
From the picture above, it can be stated that matters relating to spiritual movement which became the core of economic preaching Islam through zakah institutions. Since Islam as a living concept which comprehensive has managed to combine these three things, so print a successful cadre of the next world. The concept itself is to connect between the Farmers Community and zakah institutions other than that which has been distributed zakah can be optimized for the continuation of agricultural activities, especially the farmers who get part of the distribution of zakah.
Agpropreneur’s Dormitory Concept
Agpropreneur’s Dormitory is more than just a training program or entrepreneurial-based education programs, but also a facilitators of the following this :
1. Center for bussiness development and implementation of reseaerch-based agricultural products.
Doing commercilization of the findings or results of research institutes engaged in agriculture or any products related to agriculture which is new discovery or something innovative, whether the work of students and the work of the researchers that the findings have a reasonable economic value and become real bussiness. It is intended to build a love of agricultural products and demonstrate the magnitude of the potential of agriculture in Indonesia
2. Spiritual education to entrepreneurs
young entrepreneurs need to be equipped with spiritual education related to religion. It is intended that when it has formed a true entrepreneur. He is a person who’s still unethical in harmony with nature and humble in accordance religious values.
This is the concept of Agropreneur’s Dormitory, it is expected to revitalize the role of zakah institution in managing resources through maximizing movement of Agropreneur’s Dormitory. It is expected to optimize the movement and distribution of zakah in the agricultural industry, so its role can be increasingly felt in the community. And, proving that the Islamic Economic System is not only good in theory, but concrete to be applied.