The Journal of Social Sciences Research ISSN(e): 2411-9458, ISSN(p): 2413-6670 Vol. 5, Issue. 7, pp: 1144-1149, 2019 URL: https://arpgweb.com/journal/journal/7 DOI: https://doi.org/10.32861/jssr.57.1144.1149 Academic Research Publishing Group *Corresponding Author 1144 Original Research Open Access Financing Product Design for Fisheries Through Sharia Micro-Finance Institutions Anas Alhifni * Djuanda University Bogor, West Java, Indonesia Tuti Kurnia Djuanda University Bogor, West Java, Indonesia Biyati Ahwarumi Djuanda University Bogor, West Java, Indonesia Rully Trihantana Djuanda University Bogor, West Java, Indonesia Abstract Fishermen in Indonesia have limited access to financial assistant from banks because they do not meet criteria set by the bank. One institution that could be able to provide access and solve this problem is sharia micro-finance institution (SMFI). This study aims for identifying fishermen needs on SMFI financing products and proposing the most suitable financing design which can be applied through SMFI. The study uses qualitative approach by adopting phenomenology technique and holding a focus group discussion (FGD) to acquire the intended design. The study results showed that in general, fishermen of Palabuhan Ratu need financing product from SMFI like consumptive financing for living or family needs and productive financing that can be used to support the sustainability of their business such as purchasing equipment, boats, fishing tools and so on. The proposed design which formulated by this study incorporates double-approaches financing design; firstly, optimizing SMFI’s role as Baitul mall (house of fund) through two Islamic contracts model i.e. Qard or Qardhul Hasan and Temporary Waqf; secondly, both optimizing SMFI as Baitut Tamwil (house of financing) through three financing products that is Parallel Istishna (PI), Syirkah Mudharaba Mutlaqa (SMM) and Ijarah Muntahia Bit Tamlik (IMBT). Keywords: Financing-product design for fishermen; Sharia micro-financial institutions. CC BY: Creative Commons Attribution License 4.0 1. Introduction West Java is one of the provinces in Indonesia which has quite a large population and promising potential natural resources, including the marine and fisheries sector. West Java is a province where fisheries have been a developed sector. Moreover, the region is also famous for its rich natural resources. This potential is evident in the number of marine fisheries production sold at TPI (Fish Auction Place) in 2015 amounting to 52,361.50 tons (Anonymous). There are two coastal areas in West Java which contribute to the thriving of the industry i.e. Pangandaran and Palabuhan Ratu, Sukabumi. According to Anonymous , Pangandaran and Palabuhan Ratu areas are coastal areas which are closely located to South Java Sea and the Indonesian Exclusive Economic Zone (ZEEI). Generally, people who reside in the region are traditional fishermen counted to 183,000 persons and was ranked as the 3rd largest after East Java and Central Java (Fadilah, 2014). Fishermen’s contribution to local economy has been severely inversed and un-proportional to their economic lives whose earn is still far below prosperous standard (Fadilah, 2014). According to Muflikhati et al. (2010) coastal communities including fishermen are still among the poorest of the poor. During certain seasons fishermen cannot roam the sea due to strong ocean currents, big waves, and strong winds, such conditions popularly are known as famine seasons. Poverty has caused most fishermen in Indonesia, including Pangandaran and Palabuhan Ratu fishermen applying for loans to street moneylenders because of their simple procedure and easy access. However, this loan is an compounded interest-based loan. The percentage of interest given by moneylenders reaches 20-40 percent. Thus, the loans obtained are heavily burdensome for fishermen because they have to return high-interest loans. According to Anonymous 7.87 million fishermen recorded living in poor condition in 2013 which caused by several factors including lack of capital and loans to street moneylenders (Fadilah, 2014; Purnomo, 2015; Wulandari et al., 2016). Based on the above issues, fishermen need alternatives to obtain additional capital financing served reliably and affordably. The alternative referred to is some additional capital obtained in which do not serve by street moneylenders. The existence SMFI is a promising alternative for fishermen to get additional capital (Firdaus and Witomo, 2014). Islamic Micro-finance Institutions such as Baitul Mal Wat Tamwil (BMT) are a suitable solution to obtain additional capital for fishermen without burdening or harming involved parties (Syamsuir, 2015). The existence of these institutions is expected to provide convenience and tangible contributions to support community business activities including fishermen so they can increase their economic output, welfare and living standards (Alhfini and Huda, 2015; Baskara, 2013). But it turns