ANALYSIS OF THE POTENTIAL OF ISLAMIC FINANCING, RISK AND RISK MITIGATION OF RUBBER FARMERS TOWARDS ISLAMIC FINANCIAL INSTITUTIONS IN SOUTH SUMATRA'S OKI DISTRICT

Abstract

This study aims to analyze the potential of sharia-based financing for rubber farmers in Ogan Komering Ilir (OKI) District, South Sumatra, as well as examine the risks that may arise and how Islamic financial institutions can manage them. Sharia financing provides an opportunity for rubber farmers to gain access to capital without violating sharia rules. This research uses descriptive and correlational methods using a literature approach. Fluctuations in rubber prices in the global market and dependence on local weather factors. To mitigate these risks, Islamic financial institutions can implement strategies such as portfolio diversification, Islamic insurance, and close monitoring of the use of funds. Overall, although the risks in this sector are high, the implementation of appropriate mitigation strategies can support the sustainability of Islamic financing for rubber farmers in the OKI region.