Capital Cooperation and Profit-Sharing Practices among Salt Farmers: An Islamic Economic Contract Perspective at UD. Setia Kawan, Bali

Abstract

This study examines capital cooperation between salt farmers and business actors at UD. Setia Kawan, Pejarakan Village, Buleleng Regency, Bali, from the perspective of Islamic economic contract principles. The study aims to analyze the cooperation structure, capital provision, production transactions, price determination, profit sharing, and production risks. A qualitative field approach was employed through observation, interviews, and documentation involving four informants consisting of business actors and salt farmers. Data were analyzed through data condensation, data display, and conclusion drawing and verification, with validity strengthened through source, technique, and time triangulation. The findings show that cooperation is based on oral agreements and mutual trust. Business actors provide capital, production equipment, pond maintenance, and operational costs, while farmers manage salt production. Harvested salt is generally sold to the capital provider, with prices determined by market conditions, quality, and quantity. Profit-sharing arrangements are agreed upon at the beginning, although detailed quantitative data are unavailable. Weather is the main production risk. The practice highlights mutual consent, clarity, justice, transparency, trust, and balanced rights and obligations.