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ANALYSIS MUZARAAH INFLUENCE TOWARD FARMER INCOME (Case Study in Pondok Modern Gontor Mantingan Ngawi)

Thesis presented as partial fulfillment for the requirement to obtain the Master Degree in Religion Studies and Cross Culture Program concentration in Islamic Economy

Diajukan oleh :

Submitted by Andi Triyawan 10/307046/PMU/06720

to THE GRADUATE SCHOOL UNIVERSITAS GADJAH MADA YOGYAKARTA 2012

ANALYSIS MUZARAAH INFLUENCE TOWARD FARMER INCOME (Case Study in Pondok Modern Gontor Mantingan Ngawi)

(Letter of Publication)

ANDI TRIYAWAN 10/307046/PMU/06720

presented as partial fulfillment for the requirement to obtain the Master Degree

Supervisor

15 August 2012

15 Agustus 2012

Abstract This study analyzes the effect on income tenants muzara'ah of case studies in modern cottage district Gontor Mantingan ngawi district. Necessary data in this study were primary and secondary data. Primary data obtained through interviews with rice farmers in sub-district Mantingan ngawi by using a list of questions that have been provided. Secondary data was collected from various sources that is relevantagencies. Analysis tools used to determine the factors affecting farmers incomes are multiple linear regression. Dependent variable is the production of rice, while the independent variable is the land area, number of seeds, fertilizer amount, the amount of pesticides and HOK (person-days). To find the average income per hectare of land farmers, used cost function analysis, to determine the factors that affect income farmers used simple linear regression. Dependent variable is the income while the independent variable is the production. From the analysis of the factors that affect rice production is obtained that the area of land, seed, fertilizer, pesticides and HOK jointly have a significant effect on rice production. That the use of production factors such land, fertilizer and pesticides showed positive and significant effect on rice production, while the use of production factors such Seed and HOK showed no significant effect. These factors together showed a significant effect on rice production. Average land to expand production at one time the plant is 6123 kg / ha. From the analysis of data, known to the average revenue yield of the rice paddies are 18.369.000/ha reduced total cost of planting one of 7.801.716,63/ha, we got the result of 10.567.283,37. because it uses the system muzara'ah the results are shared with the foundation so that the two net income of farmers amounted to Rp. 5.283.641,685/ ha. The results of data analysis influence the productivity of smallholder farmers net income showed a positive and significant impact on net income of farmers.

Key words: muzara'ah, rice production, income, the dependent variable, independent variable.

Introduction Indonesia has long referred to as an agricultural country, because most of the land could be used to grow crops. Rising agricultural in 1970 until 1980's. Indonesia also has become one of the country self-sufficient producer of rice in 1984 (Yulizar, 2009). Agriculture sector is often referred to as a leading sector, which means that this sector will be the source of welfare. The ministry of national rice production in 2011 reached 68,061,715 tons, exceeding the 2010 rice production is 66,411,469 tons. In East Java Rice production in 2011 amount 11,643,773 (Ministry of Agriculture, 2012 in www.deptan.go.id). Social welfare can be assured by managing the farm. Specially in rural areas, the majority of the villagers work in the field everyday. Whether it's working on his land himself or other people's fields. In this case the government also supports the activities of agriculture by established the cooperatives (KUD) in villages. in order to help farmers for distribution of fertilizers, seeds, and grain procurement. For farmers who have no land, they usually help other farmers for cultivating the land. Cooperation made by the farmers and owners of rice fields is named muzara'ah (Al Jaziri, 2004). Where all the needs that used to be met by the owner of the farm land, while for rice farmers enough simply to do the processing of the rice planting until finish. The rice farmers are getting the benefit when the crop is obtained. Implicitly, the farmers and cultivators of rice in hand with each other in virtue of mutual help, as spoken by Allah in the Qur'an, which reads:

.................
"Help ye one another in righteousness and piety, but help ye not one another in sin and rancour". (QS. Al-Maidah: 2). Muzara'ah also been made by the companions of the prophet. Ali, Sa'ad ibn Malik, Abdullah ibn Mas'ud, Umar bin Abdul Aziz, Qasim, Urwah, the family of Abu Bakr, Umar family, family of Ali and Ibn Sirin, they also do muzara'ah. Rasulullah SAW said:


"Whoever has land, planted or let him tell his brother to let him planted" (HR. Ahmad). Above hadith the Prophet gave orders to people to work on their field. And if not able to process it themselves should submit its processing to others. Along with the importance of a study to evaluate the economic activity, in this study to be examined is the Muzara'ah activity that occurs in Pondok Modern Gontor. In this case why the boarding school becomes the object. Departing from the assumption that most of the boarding school is a place for study of knowledge that has no bearing on economic activity. Attract researchers to examine the economic activity of the boarding school that closely related to muzara'ah (soil management sharing system). Boarding Schools that have a rice field, making it impossible for managers to manage it themselves, so given the task of management to the society. Rice fields are managed by the society is 53,8 Ha, and number of farmers as much as 108 men. Each harvest, the harvest is divided between the land owner and the farmer with the results that have been agreed before. Both of fertilizer and seeds to irrigation, all borne by the farmers in this case is the society. From the profit share that received by the farmers, can be used to sufficient the daily needs. But in this case, whether the results given by the managers of these fields to give welfare to the farmers who worked the rice fields. Based on the exposure, the authors wanted to examine are there implications for the results applied in the management of waqf land Pondok Modern Darussalam Gontor towards improving the welfare of the people who work in these fields. Research objectives Based on the problem formulation, it is known that the objective purpose of this study are:

1. Calculate the average yield, total revenue, total expenses and net income of farmers with a land area of 1 hectare 2. Analyze the factors of production: land, fertilizer, seeds, pesticides and HOK (Day of the Work) that affect production. 3. Analyzing the effect of farm production and net income farmers.Understanding muzara'ah

Muzara'ah Etymologically Muzara'ah drawn from the word azzar'u meaning cultivation or processing. As for the terminology is handed to the person who planted the land and manage it then the result divided by two (Ath Thayyar: 2004). For results to be shared would by agreement between the owner of the land and farmers of the land. According Hanafiyah:

Muzara'ah is an agreement of cooperation between land owner and the workers (farmers), in which the farmers could lease land to the land owner or land owners hire laborers to till the soil. In line with the scholars of madzhab Maliki that defines muzara'ah " cooperating in agriculture". Meanwhile, according to the scholars of madzhab Hambali:

: , .

. .
Hanbali school of scholars say is the owner of the land muzara'ah land to the tiller at the same time providing the seed to be planted after the harvest, the crop is divided half or one third. In Iraq muzara'ah term is often referred to as mukhaabarah ( Hasan, 2004).

Legal Basis Muzara'ah Al Quran


Or, Who has created the heavens and the earth and the lower the water for you from heaven, and we raised it with water gardens, scenic, that ye are not able to grow the trees? Is there any God beside Allah (the others)? Even (in fact) they are the ones who stray (from truth) (Surat an Naml: 60). In the above verse describes the creation of God who created the heavens and the earth, even the water used by farmers to irrigate the fields, grow crops and so it comes from Him (Sabiq: 2006). In this regard the cultivation of rice require water that is revealed by God. ........

"Help ye one another in righteousness and piety, but help ye not one another in sin and rancour". (QS. Al-Maidah: 2). Explains the above verse that Allah SWT commands us to helping each other in virtue and devotion. in the other hand, the principle of in muzara'ah is mutual help between the owner of the land to the workers the field. In this case, the foundation wants to help local people to cultivate their land, and surrounding

communities also offer help in the cultivation of these fields. There is a symbiosis of mutual benefit, the foundation of pondok also find it helpful to the cultivation of his land and people get jobs to earn money.

........... .......
"And indeed most of the people who teamed it actually do wrong to others except those who believe and do pious deeds.." (QS. Shod: 24). In the verse above describes the conduct of business cooperation, which can also be associated with muzara'ah, should not deceive each other. Because most people who are teamed or cooperation is often easier to do business fraud. The verse provides an important rule in muzara'ah too. Because of the cooperation between the cottage and community foundations must be put on the principle of faith and pious deeds so that no one was injured between the two sides. Hadith

:
Rasulullah SAW said "He who has land, planted or let him tell his brother to let him planted"(HR. Ahmad). The hadith of Prophet ordered that the land or farm, should not be left dormant, must be planted to produce. Than that the prophet Muhammad also provide a solution if the landowners can not afford to be planted, must be delegated to relatives or others who are capable of. Abu Ubaid one of companions of the Prophet said to Bilal, "The Prophet did not leave the valley to you for your fence so that people can not take it, but he will give to thee to work on it. Then take from the land that you can manage and the others (that you can not manage) restore ". (An Nabhani: 1996: 140)

In this study, the foundations of Pondok are not able to work their fields, then delegated the cultivation to the local community so, there is additional income for the community after the harvest. And this time with the hadith if they are not able to work on their own land then transferred to another person who is able. The Endowments of Pondok Gontor The Endowments of Pondok Gontor tasked to carry out the mandate of the leader of Trimurti Gontor. In order to carry out important task of founding Gontor, The Endowments of Pondok Gontor established technical institutes such as Students guidance and counseling, Islamic Teachers Training College (ITTC), Darussalam University and The Foundation for Waqf Maintenance and Enlargement Pondok Modern. Highest body within the organizational structure is Pondok Modern Darussalam Gontor Waqf Board. This initial endowment stewardship agency, appointed by the founder Kyai cottage. On 12 October 1958, 15 alumni have been appointed by the founder of the lodge for the undertaking, took delivery of endowments and committed to the struggle Gontor cottage (Juhaya: 2009). Agency endowments of this first period after running more or less 19 years later held a meeting in Jakarta on 25-26 September 1977 to hold a rejuvenation. Governing bodies endowments which later affirmed to be legal entities through a deed in Madison on July 16, 1978. Below are the agencies that deal with endowments expansion and maintenance of an abbreviated cabin YPPWPM endowments. Task than the Foundation Maintenance and expansion of modern cottage waqf (YPPWPM) is to maintain and expand land endowments cottage, and trying to remain a productive endowments, on the other hand also khizanatullah care and welfare of the family cottage. By 2010, land which has been dominated by YPPWPM totaled 828.05 spread over 19 districts throughout Indonesia. (Wardun: 2010: 23) In order to help improve the living standard of farmers, YPPWPM give enough attention to the farmers around the cabin. One step to help them is by

forming farmers' groups around the area of land owned by the lodge. They became the target and partner in maintaining and managing the work waqf land. YPPWPM the agricultural development has taken several steps to improve the productivity. Among the measures and strategies are: 1. Regular weekly meetings and monthly and quarterly basis, for farmer groups in the region Sambirejo Mantingan Ngawi. In this meeting presented some problems related to cultivation and other systems. 2. Orientation Kepondok Modernan to farmers' groups. It is considered important, to make the perception among the cultivators of rice fields and huts. Because a good relationship between the farmer/ farmer groups assisted with the cottage will be an important factor in improving the agricultural productivity. 3. Lectures held at certain times of the managers and field cultivators. Because of the way the farmers/ cultivators of rice is more active in taking steps rice yield improvement. 4. Goodwill visit to several groups of historic farm. Initiated this visit, they are free but are only required to follow the events that have been prepared by the committee. (Wardun: 2008: 48) Characteristics muzara'ah in Pondok Modern Gontor Rice cultivation in the Gontor foundation by muzara'ah contract (Profit Sharing). In this case, the land is fully owned by the foundation, the tenant farmers (local villagers) only in charge of working with their respective sections of land per individual. There are 0.5 hectar, 0.7 hectar and 1 hectar. Will explain some characteristics that are applied by the foundation muzara'ah Gontor cottage include: 1. Planting time in the cabin area 3 times per year. 2. Farmers are given the trust by the lodge to manage rice cottage. 3. Rice tax is borne entirely by the cottage. Farmers are not charged rent of land. 4. Most of the farmer is given a loan in the form of seeds, pesticides, and fertilizers.

5. For the problem of water, the cabin foundation has provided a water pump some point fields. Cultivators party may request the pumping of water through a foreman in each group with the hourly cost of pumping Rp. 33.000. 6. Tractor cabin provides the foundation that can be used by the farmers with the rental fee of Rp. 355 000 / 0.5 ha. 7. For payment, number 4.5 and 6 performed by cutting the profit of crop. 8. In the event of crop failure, the tenant can pay it next time when the harvest work. 9. The foundation to give the form of guidance counseling in the field of agriculture and religious development of each month through the study. After every harvest, the Foundation organizes Pengajian Akbar. Each end of the year, the foundation of Pondok organizes tours with the whole family of farmers. All expenses paid by Pondok. Hypothesis Hypothesis is the answer, while not verifiable, so it can be empirically confirmed or denied. (Hussey, J.: 1997: 55) The authors hypothesized that taken are as follows. 1. Factors of land, seed, fertilizer, pesticides, HOK (person-days), a positive influence on grain production 2. Grain production has a positive effect on net income of farmers. How to Research 1. Research Sites - In the district Mantingan Ngawi regency, East Java Province 2. Sampling Techniques - Using a Purposive Sampling Method. 3. Types and Sources of Data - Primary data obtained through field study (field research) is a way to capture respondents' opinions through interviews of a sample of farmers, and direct observation conducted the study area. - Secondary data obtained from government agencies such as Ministry of Agriculture of Indonesia.

Operational definitions of variables To clarify the understanding and interpretation of the similarity in the variable data submitted by the researchers in this study. Then the researchers used a measurement in the use of these terms as follows: 1. Farmers' income or the production of all admissions were obtained from rice farming in a single growing season. Calculated from the sales of the product, ie the number of production x price per unit (Rp/ kg). 2. Farming is an activity based on rice farming season by the farmers. 3. The land area is the area of fields used for growing rice (in hectares). Farmers who tilled the land area of the planting season in units of acres. 4. Seeds, rice seeds are used to grow rice during one growing season. 5. Fertilizer, is one of the drugs used to fertilize the soil in one growing season. 6. Pesticides are the types of drugs rice pest exterminator measured in milli liters (ml). 7. Person days of work (HOK), is the amount of labor within the family and outside the family. 8. Rice production, the farmers harvest rice as measured in units of kg in a single growing season. 9. Farm business profit is the difference between the value of production by onetime cost of production in the rice growing season. 10. Labor cost is the amount of expenditures for persons employed in the process of preparation for planting rice planting until harvest (Rp/ ha). 11. The cost of seed is the total expenditure for procurement of rice seedlings are planted. 12. The cost of fertilizer is the amount of expenditure for the procurement of fertilizer on the farm (Rp/ ha). 13. The cost of pesticides is the whole use of pesticides in solid and liquid, which is used in the control of pests and diseases of rice plants in a single growing season (Rp/ ha). 14. The cost is the sum total of production costs incurred during the production process during the growing season, is measured in rupiah (Rp).

15. Total revenue, gross income is the amount of farmers from the sale of products at prices prevailing at the time of the research carried out and measured in rupiah (Rp) during the growing season. 16. Net income is the profit obtained by farmers during the growing season (all seasons), total revenue (gross income) after deducting the costs incurred during the production process that is measured in rupiah and then divided by two.

ANALYSIS AND DISCUSSION Analysis of average net income tenant Farmers Income that used in this analysis is the net income of the productivity of land, which total revenue minus by production cost of land production expenses then split into two with the foundation. Acceptance of production is the production value per hectare obtained in a single growing season. Modern cottage foundations rice cultivation by tenant farmers Gontor for about four months each season the average yield production (Y) of 6123 kg. While the selling price of unhusked rice at harvest for 3000/kg. So that the average total revenue (TR) or the Gross Receipts of grain amounted to Rp. 18.3681 million. While farm production costs consist of depreciation costs of equipment, cost of drainage maintenance, tractor rental fees, cost of seed, fertilizer costs, the cost of water, pesticide costs, labor costs. In summary the calculation of production costs according to volume of production factors are presented in Table 4.4.

Table 4.4 The average cost of grain production per hectare No 1 2 3 4 5 6 7 8 Description Depreciation of Equipment The cost of maintaining waterways Lease tractor seed costs fertilizer costs water costs the cost of pesticide labor costs Total (TC) Sources: Primary data (processed) Based on the information presented in table 4.4 above, are known to average total cost of Rp. 7,801,717.3. The approach that used to analyze the average income of rice farmers is the average net income of farm divided by 2, in here, the average net income derived from the reduction of the average total revenue by the average total production costs divided by 2, because the tenants simply accept the result of net production. Income tenants during the growing season can be seen in the following table. Rp. Rp. Rp. Rp. Value (Rp) 43,519.30 60,000.00 710,000 269,098.00

Rp. 1,220,468.00 Rp. 1,194,757.00 Rp. 598,660.00

Rp. 3,705,215.00 Rp 7,801,717.30

Table 4.5 Average revenue (TR), Average Expenditure (TC) and average net income of rice farmers cottage NO 1 2 3 4 Description Average Revenue (TR) Average Total Expenditure (TC) Net revenue (TR) Net income for tenants farmers (TR / 2) Total Rp. 18,368,100 Rp. 7,801,717.3 Rp. 10,566,382.7 Rp. 5,283,191.35

Sources: primary data (processed)

From Table 4.5 above, it is known that the business of cultivating rice in Mantingan on average Reveneu total is (TR) Rp. 18.368,100, Total cost of Production (TC) is Rp. 7801717.3 so that the average revenue per person growing season amounted to Rp. 10,566,382.7. Meanwhile, net income for the farmers at a season of Rp. 5,283,191.35. Analysis of factors affecting production output Multiple Regression Analysis Based on the results of data processing using the software SPSS 15.0 Statistics obtained by the coefficient of determination, a constant value, the value keofisien regression, F test and t test values. These data can be seen in the table contained in Appendix SPSS output. Based on regression analysis output, can be explained as follows: 1) The output 1 (Variables Entered / Removed) which describes the variables included and the excluded. In this case all the variables included and the method used is the Enter key. 2) At the output 2 (Model Summary) which describes the multiple correlation R value, the value of R2 (R Square) or the coefficient of determination, adjusted R Square is the adjusted coefficient of determination, and Std. Error of the Estimate is a measure of eror prediction. 3) The output 3 (ANOVA) which describes the testing together / simultaneously (F test), while the significance of <0.05 then there is the influence of jointly between the independent variable on the dependent variable. 4) At output 4 (coefficients) which describes t test/ partial test, the significance of measuring the level of significance of t test. The size if the significance of <0.05 then there is a partial influence of the independent variable on the dependent variable. Analysis of coefficient of determination (R2) Analysis of R2 (R Square) or the coefficient of determination is used to find out how big the influence of independent variables prosenstase contribute jointly to the dependent variable.

Based on the SPSS output (Model Summary) can be determined the value of R2 (Adjusted R Square) is 0.331. So that the contribution of the influence of independent variables on the dependent variable is equal to 33.1% while the remaining amount of 66.9% influenced by other factors not examined in this study. Simultaneous Significance Testing (Test F) The test statistic F (F-test) was used to test the effect of independent variables together on the dependent variable. Testing procedures or tests of significance F test simultaneously as follows: 1. Determine the null hypothesis and alternative hypothesis. Ho: 1 = 2 = 3 = 4 = 4 = 0 means the land, fertilizer, seeds, pesticides, and HOK together had no effect on production. Ho: 1 2 3 4 0 means that the land, fertilizer, seeds, pesticides, and HOK jointly influence on production. 2. Determine the significance level: The level of significance using 0.05. 3. Determine F and F tables count. F-count value is equal to 12.013 (the value of F in the ANOVA table) F-table value obtained in the statistical tables at the 0.05 df1 = k-1 or 6-1 = 5, and df2 = nk or 30-6 = 24 (the number of variables). Then obtained the F table is 2.62. 4. Decision-making. F-F-table count H0 accepted then F-count F-table then H0 is rejected

H0 is accepted 2,62 12,013 Determination of H0 region for F test

5. The Result It is known that the F-count 12.013> F table 2.62 then H0 is rejected. So it can be concluded that simultaneous land, fertilizer, seeds, pesticides, HOK jointly affect production. Decision making based on significance: A. Determine the null hypothesis and alternative hypothesis. Ho: 1 = 2 = 3 = 4 = 0 means the land, fertilizer, seeds, pesticides, and HOK together had no effect on production. Ho: 1 2 3 4 0 means that the land, fertilizer, seeds, pesticides, and HOK jointly influence on production. 2. Determine the significance Based on the ANOVA output tables obtained significance value of 0.000 3. Decision-making Significance> 0.05 H0 accepted then Significance of 0.05 then H0 is rejected 4. The Result It is known that the significance value of 0.000 <0.05 then H0 is rejected. So it can be concluded that the land, fertilizer, seeds, pesticides, HOK together significantly affect production.

Partial Significance test (t test) T test (t-test) was used to test the effect of independent variables on the dependent variable partially. Based on the SPSS output (Coefficients) obtained the following values: 1. Land variable is significant because its significance value is 0.002 below 0.05. 2. Fertilizer variable is significant because of its significance value is 0.001 below 0.05. 3. Pesticide variable is significant because its significance value is 0.038 below 0.05.

Analysis of the productivity effect on net income of farmers In terms of the extent to which researchers will analyze the influence of the production of net income tenant Farmers with SPSS 15.00. The dependent variable is net income tenants and the independent variable is the result of production. The analysis function is derived income koefisien value determination (R2) of 0.936. This indicates that 93.6% variation in farmers' income is affected by variations in rice production, while the remaining 6.4% of the variation of income is affected by variations in other factors outside the model. Analsis results also indicate that the variable production of t test has a value of 20.176 is greater when compared with the t-table at 95% significance level ( = 0.05) df = 29 production of 1.699 means that the variable (Y) have a significant effect on farmers' income . The relationship between production (Y) with net income of farmers has a positive regression coefficient, The meaning that if production increased by 1 percent, then the farmer's income would increase by 1270.336 per cent. The Result Based on the results obtained by analysis and discussion of research on the factors that affect income rice farmers in Mantingan, it can be concluded as follows: 1. With the contract muzara'ah average grain yield of 6123 kg / ha, at a price of Rp. 3000/kg, gained an average of TR / ha amounting to Rp. 18.369 million. Average total cost / ha of Rp.7.801.716, 63, then from the total revenue minus total costs and then divided by 2 to get a net income of farmers planting permusim Rp.5.283.641, 685. If the division results performed in general, tenants bear all costs so that a smaller net income tenants. 2. The use of production factors of land, fertilizer and pesticides showed positive and significant effect on rice production, while the use of production factors and HOK seedlings showed no significant effect. 3. Production shows a significant and positive effect on net income of farmers.

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