A Parallel Ba’I As-Salam Financing Mechanism for Banana Farmers, Micro Enterprises, and Medium Enterprises Title: A Parallel Ba’I As-Salam Financing Mechanism for Banana Farmers, Micro Enterprises, and Medium Enterprises Authors: Deddy Kurniawansyah and Dian Agustia Affiliations: Department of Accounting, Airlangga University Surabaya, Indonesia Publisher: American Scientific Publishers Abstract This study aims to identify and analyze (1) problems faced by banana farmers, Islamic financial institutions, micro enterprises and medium enterprises in conducting the ba’i as-salam financing mechanism (2) factors trigger the failure and success of implementing the ba’i as-salam financing mechanism to the banana farmers, islamic financial institutions, and micro enterprises and medium enterprises (3) formulate the right ba’i as-salam parallel financing mechanism on banana farmers, islamic financial institutions, micro enterprises, and medium enterprises. The type of research which was conducted in Banyuwangi regency was qualitative exploratory. The data was primary and secondary which were analyzed by using the triangulation method. The results show that banana farmers have not received any salam financing either from the micro enterprises and medium enterprises nor the islamic financial institutions. The problems faced by banana farmers are lack of capital, difficult market, low quality of bananas during the rainy season, pest attacks, time supply, price fluctuations and the duration of production period from planting to harvesting. Mean while the problems in implementing the salam financing mechanism are no capital used as down payment in up front cash, the risk of capital loss, the bad character of selling bananas to other parties due to an increasing price. Furthermore, the parallel ba’i as-salam financing mechanism is appropriate, applicable, bankable, and marketable. As it has become an integrated partnership the problems are resolved. Indeed this mechanism contributes to stimulate the agricultural sector micro enterprises and medium enterprises so that it has a positive impact on economic growth in Banyuwangi. Keywords: Ba’i as-salam, Ba’i as-salam Parallel, Transaction Mechanism, Islamic Finance Sources: https://www.ingentaconnect.com/content/asp/asl/2017/00000023/00000009/art00097%3bjsessionid=1vl3x858i38dg.x-ic-live-01