COFFEE PLANTATION PROFIT-SHARING SYSTEMS AND FARMER INCOME: A SHARIA PERSPECTIVE
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Abstract
This study was motivated by a gap between the normative concept of muzāra'ah contracts in Islamic economics and how coffee plantation profit-sharing actually works at the village level. It seeks to examine the structure of such contracts, how profit-sharing is carried out in practice, what this means for sharecroppers' livelihoods, and whether these arrangements align with Islamic economic principles. Using a qualitative case study approach, the research was conducted in Kedaton Village, Kasui District, Way Kanan Regency. Ten informants, four landowners and six sharecroppers, were selected through purposive sampling. Data were gathered through in-depth interviews, observation, and documentation, then analyzed using an interactive model encompassing data reduction, data display, and conclusion drawing. The study finds that partnerships in this setting operate on a trust-based muzāra'ah model, with a fixed 50:50 profit-sharing ratio agreed upon from the outset. This arrangement supplements sharecroppers' income and helps maximize land productivity, though earnings remain susceptible to price volatility and variable harvests. From a normative standpoint, the practice largely upholds the principles of justice, maslahah, trustworthiness, and the prohibition of riba, yet a notable weakness persists in the absence of written contracts, leaving arrangements without formal legal grounding. The study's contribution lies in combining an analysis of agricultural income impact with a sharia compliance assessment within a local coffee-farming context. The findings underscore the need to strengthen contract documentation as a means of improving legal certainty and supporting the long-term sustainability of rural economies.
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