Agricultural Financing and Food Security in Sumatra: The Role of Islamic and Conventional Banks in a Dual Banking System
DOI:
https://doi.org/10.24235/jiesbi.v3i2.585Keywords:
Agricultural Financing, Conventional Banks, Food Security, Sumatra IslandAbstract
Food security is a key target of the Sustainable Development Goals (SDGs), aiming to end hunger and promote sustainable agriculture by 2030. This study examines the role of agricultural financing under a dual banking system comprising Islamic and conventional banks in enhancing food security across 10 provinces in Sumatra from 2019 to 2023. Using panel regression analysis, the results indicated that agricultural financing from both Islamic and conventional banks has a significant, positive impact on food security in the region, highlighting the importance of bank-based financing in supporting agricultural productivity and food availability. In addition, agricultural labor, the Human Development Index (HDI), and the Farmer Exchange Rate (FER significantly contribute to improving food security across Sumatra. These findings suggest that expanding and strengthening agricultural financing portfolios within both Islamic and conventional banking systems can effectively support government efforts to enhance national food security and promote sustainable agricultural development. Overall, this study provides policy-relevant evidence on the importance of an inclusive agricultural financing framework in strengthening food security across Sumatra.
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Copyright (c) 2026 Sulaeman, Husnul Mirzal, Rodame Monitorir Napitupulu, Novy Anggraini Sudibyo (Author)
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