Malik Abdul Jabbar Zen, Ade Irma Diana & Khoirul Zadid Taqwa

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  • ISBN 978-967-394-230-5 [PROCEEDINGS OF IDMAC2015]

    9th ISDEV International Islamic Development Management Conference

    (IDMAC2015) 654



    Malik Abdul Jabbar Zen1, Ade Irma Diana

    2, Khoirul Zadid Taqwa


    1 Veterinary Medicine Faculty, Airlangga University

    Mulyorejo, Surabaya 60111, phone (031) 5992785 2 Veterinary Medicine Faculty, Airlangga University

    Mulyorejo, Surabaya 60111, phone (031) 5992785 3 Business and Economics Faculty, Airlangga University

    Airlangga, Surabaya 60111, phone 1 2



    Sugarcane is one of the strategic agricultural commodities which provide many on

    farm and off farm side products. In 2014, sugarcane plantation area in Indonesia

    reaches 477.881 hectares, increasing about 1,84% over the previous year. That

    number is expected to continue to increase with the passage of the national sugar

    self-supporting program. Sugarcane byproducts that have not been utilized is dried

    sugarcane leaves, reached 30,8 tonnes/hectare. In the other side, the growth of cattle

    farms in Indonesia reached 15.494.290 cows. The problem is that scarcity of

    fertilizers and the availability of feed in dry season. From the problem, we need for a

    guarantor system availability of feed to prevent losses for farmers based on

    integrated cooperation. Islamic insurance is an insurance business based on the

    principle of helping (ta'awuni) and protecting (takafuli) each other among the

    participants through the creation of a collecting of funds (Tabarru' funds) that are

    managed according to Islamic principles to deal with spesific risks. Data collection

    method in this paper through literature studies using secondary data. The steps in the

    process is done as a foundation for developing the basic idea in providing solutions

    to problems that are formulated, included formulated themes and problems,

    collecting data method, analysis, conclusions and recommendations. Data analysis

    techniques using inductive analysis conceptual. Therefore this concept shows the

    supply chain management for sustainable feeding integrated with Islamic sugarcane

    plantation microfinance institutions (IFI's) has high chance to develop in Indonesia

    supported by public sector, private sector and third sector.

    Keywords: Islamic Insurance, Dried Sugarcane Leaves, Cooperation, Cattle faeces

  • ISBN 978-967-394-230-5 [PROCEEDINGS OF IDMAC2015]

    9th ISDEV International Islamic Development Management Conference

    (IDMAC2015) 655


    Indonesia is agricultural state which has many variations of agricultural products.

    Sugarcane (Saccharum officinarum L.) is one of the strategic agriculture

    commodities which provide many on farm and off farm products. Based on Angka

    Sementara (ASEM) 2011 from General Directorate of Plantations, sugarcane

    plantation area in Indonesia increased between 2000-2011 (Picture 1). Perkebunan

    Rakyat (PR), dominated most of the sugarcane plantation areas, followed by

    Perkebunan Besar Swasta (PBS) and Perkebunan Besar Negara (PBN). In 2011, the

    wide of sugarcane plantation areas in Indonesia up to 457.615 hectares or increasing

    0,77% than the previous year (Data center and Agriculture Information, 2013). With

    the governments program, sugar self-sufficiency 2014, one of the effects is

    sugarcane plantation areas become wider. So, the side product from sugarcane

    plantation will be increased. The side products are the dried sugarcane leaves,

    bagasses and molasses. If this side products do not recycle well it can be polluted to

    the environment.

    Cattles is one of the livestock. As a livestock animal, cattle divided into two types,

    beef cattle and dairy cattle. Cattle are herbivores, they have mastication behavior.

    Mastication behavior is the behavior that ruminants do to chew the feed again after

    the feed turn on to the rumen, from the rumen, the feed will be back to the mouth to

    doing mastication behavior. This behavior caused by cattles feed contains high crude

    fiber so to break the components of crude fiber, they doing mastication behavior.

    Figure 1: Graphic for Sugarcane Areas

    Source: Data Center and Agricultural Information 2013

    The prominent cows feeding is forages, bye products of agriculture, legumes and

    concentrates. The productivity of cattle depend on feed which given to them, so

    feeding must attended to quality, quantity and availability. Forages usually consist of

    grass and bush. On the rainy season, the availability of feed will be abundant, but in

    dry season the availability will be limited. If we save it in dry conditions, the forages

    can be used in dry season (Kuswandi et al, 1990). When the harvest time, the dried

    sugarcane leaves will be overflow, so we need to cultivate that by make a silages

    with fermentations process. Fermentation process can increase proteins, palatable

  • ISBN 978-967-394-230-5 [PROCEEDINGS OF IDMAC2015]

    9th ISDEV International Islamic Development Management Conference

    (IDMAC2015) 656

    and saving time. In the other hand, if we make fermentations feed, we can use

    probiotic microbiology to increasing palatable and to repair cattles gastric intestine

    system (Rusdi, 1992).

    With the availability of agricultural potential areas, it is good enough to develop as a

    cattles farm. There are many positive effects for the people, it can be a business

    opportunity to the people and increasing the income for the surrounding people who

    lived there. So, we need a systems which has mutualism symbiosis between

    sugarcanes farmer and cattles farmer to recycle any bye products from sugarcanes

    farm and guarantee for the availability of cattles feeding in dry season. . Supply

    Chain Management Based on Islamic Microfinance for Sustainable Feeding is a

    solution that can be options to face the problem above. Animal feeding insurance

    based on Islamic Microfinance which given to the member as a claim if they doing

    premium payments. If they doing premium payments cattles faeces they will get

    dried sugarcane leaves fermentation as animal feed. It can applied as a new

    innovation to reach the sustainability animal feed in Indonesia.


    Supply chain and supply chain management have played a significant role in

    corporate efficiency and have attracted the attention of numerous academicians over

    the last few years. Connecting and informing. Connecting and informing on Supply

    Chain, Supply Chain Management and distribution Management characteristics have

    contributed to the Supply Chain integration. This integration has generated the

    approach of extended corporate and the supply chain is nowadays manifested as the

    cooperative supply chain across intercorporate borders to increase the value across of

    the whole supply chain

    Ayers,J. B.(2001) defines Supply Chain as life cycle processes involving physical

    goods, information, and financial flows whose objective is to satisfy end consumer

    requisites with goods and services from diverse, connected suppliers. Mentzer, J.,

    Witt, W. D., Keebler, J., Min, S., Nix, N., Smith, D. & Zacharia, Z.(2001) defines

    Supply Chain as a set of entities (eg. organizations or individuals) directly involved

    in the supply and distribution flows of goods, services, finances, and information

    from a source to a destination (customer).

    According to Grant, D., Lambert, D., Stock, J. and Ellram, L. (2006), Supply Chain

    management refers to corporate business processes integration from end users

    through suppliers that provides information ,goods, and services that add value for

    customers.. The Supply Chain Management Professionals Council (2009) asserts

    that Supply Chain management (SCM) includes the designing and management of all

    activities involved in sourcing and purchasing, transformation, and all logistics

    management activities. Principally, it also includes coordination and partnership with

    network partners, which can be suppliers, mediators, third party service providers

    and customers. Fundamentally, Supply Chain management (SCM) coordinates

    supply and demand management within and across corporate

    Actually the theoretical framework of SCM is large. Yet, it is still about how to

    manage goods, services, or information in order to have added value. Therefore the

  • ISBN 978-967-394-230-5 [PROCEEDINGS OF IDMAC2015]

    9th ISDEV International Islamic Development Management Conference

    (IDMAC2015) 657

    crisis of feed for cattle can be solved by the Supply Chain Management Model

    integrated with Islamic Insurance (Takaful) based on Islamic Microfinance (Baitul

    Mal Wattamwil).


    According to ushl fiqh, the original legal position on any matter is halal until there is

    evidence prohibiting it. Cooperative insurance should thus be allowed since it is

    intended for a good cause and cannot be declared unlawful based on a mere

    presumption that is, without any specific injunction in the Quran. The academy

    further elaborated that the Shariah permits shareholdi