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The purpose of this research was to formulate strategies and models of institutional strengthening through local farmer groups and capital strengthening through the intermediation of Sharia Financial Institution (SFI) with linkage program. | Institutional development of farmer group through structural analysis farmer group networks and agricultural sharia financing International Journal of Management IJM Volume 9 Issue 3 May June 2018 pp. 42 54 Article ID IJM_09_03_005 Available online at http www.iaeme.com ijm issues.asp JType IJM amp VType 9 amp IType 3 Journal Impact Factor 2016 8.1920 Calculated by GISI www.jifactor.com ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication INSTITUTIONAL DEVELOPMENT OF FARMER GROUP THROUGH STRUCTURAL ANALYSIS FARMER GROUP NETWORKS AND AGRICULTURAL SHARIA FINANCING Purbayu Budi Santosa Faculty of Economics and Business University of Diponegoro Jl. Prof. Soedarto SH Tembalang Semarang Jawa Tengah Indonesia Wiludjeng Roessali Faculty of Animal and Agricultural Sciences University of Diponegoro Jl. Prof. Soedarto SH Tembalang Semarang Jawa Tengah Indonesia Ariza Fuadi Faculty of Economics and Business University of Diponegoro Jl. Prof. Soedarto SH Tembalang Semarang Jawa Tengah Indonesia Darwanto Faculty of Economics and Business University of Diponegoro Jl. Prof. Soedarto SH Tembalang Semarang Jawa Tengah Indonesia ABSTRACT Agricultural is a very strategic sector in economic development in Indonesia however several problems still need to be resolved such as farmers welfare access to capital and production marketing. The existence of farmer groups and Sharia Micro Finance Institutions SMFI have not been able to optimize the potential of the agricultural sector. The purpose of this research was to formulate strategies and models of institutional strengthening through local farmer groups and capital strengthening through the intermediation of Sharia Financial Institution SFI with linkage program. The models of institutional strengthening of farmer groups and SFI financing capital might become one of the foundations of national economic development. This research applied qualitative approach using data collected by in- depth interview focus group discussion .