Rethinking Contemporary Pesantren Law and Economic Independence: A Legal Economic Approach to Institutional Sustainability
DOI:
https://doi.org/10.32332/milrev.v5i1.12977Keywords:
Economic Independence; Institutional Sustainability; Legal-Economic Incentives; Islamic Entrepreneurship.Abstract
This study critically examines the relationship between Law No. 18 of 2019 concerning Pesantren and the realization of economic independence within Islamic boarding schools in Indonesia through the perspective of law and economics. Although the law formally recognizes pesantren as institutions of community empowerment, this article questions whether normative legal recognition is sufficient to create sustainable economic autonomy. The research employs a doctrinal legal method combined with an institutional economics approach, emphasizing incentive structures, transaction costs, institutional governance, and economic sustainability. Data were analyzed through statutory interpretation, conceptual analysis, and institutional evaluation of pesantren economic practices in contemporary Indonesia. The findings demonstrate a significant gap between normative legal expectations and practical implementation. Many pesantren continue to experience structural limitations in access to capital, managerial professionalism, market integration, and institutional competitiveness, resulting in continued dependence on state assistance and donor-based programs. The study further reveals that the effectiveness of pesantren law is strongly influenced by the design of legal-economic incentives, institutional differentiation between resource-rich and resource-poor pesantren, and the integration of pesantren enterprises into the broader Islamic financial ecosystem. This article argues that economic independence should not be understood as an automatic consequence of legal recognition, but rather as a dynamic and negotiated process involving the interaction of state regulation, market mechanisms, and religious authority. The study contributes to contemporary Islamic legal scholarship by offering an institutional economics framework for pesantren development and proposing policy recommendations focused on incentive-based regulation, tiered Sharia-compliant financing, and sustainable institutional capacity building for pesantren economic transformation.
References
Ahmed, Shabbir, Mansoor Mushtaq, Mochammad Fahlevi, Mohammed Aljuaid, and Sebastian Saniuk. “Decomposed and Composed Effects of Economic Freedom on Economic Growth in South Asia.” Heliyon 9, no. 2 (February 2023). https://doi.org/10.1016/j.heliyon.2023.e13478. DOI: https://doi.org/10.1016/j.heliyon.2023.e13478
Ahwarumi, Biyati, Anas Alhifni, Martin Roestamy, and Radif Khotamir Rusli. “Distributive Justice and Ethical Challenges in Digitizing Pesantren Land Certificates.” JURNAL ILMIAH GEMA PERENCANA 4, no. 2 (December 2025): 1705–1722. https://doi.org/10.61860/jigp.v4i2.329. DOI: https://doi.org/10.61860/jigp.v4i2.329
Alhifni, Anas, Biyati Ahwarumi, Martin Roestamy, Radif Khotamir Rusli, and Warizal. “The Cultural Embeddedness of Economic Action: Islamic Values, Entrepreneurship, and FinTech Innovation.” Journal of Cultural Analysis and Social Change, December 4, 2025, 95–104. https://doi.org/10.64753/jcasc.v10i4.2782. DOI: https://doi.org/10.64753/jcasc.v10i4.2782
Alhifni, Anas, Martin Roestamy, Warizal, Biyati Ahwarumi, and Asep Thobibudin Qolyubi. “The Awqaf-Driven Venture Capital: A Policy Innovation in Financing for the Pesantren Entrepreneurial Ecosystem.” JURNAL ILMIAH GEMA PERENCANA 4, no. 2 (December 2025): 1667–1688. https://doi.org/10.61860/jigp.v4i2.322. DOI: https://doi.org/10.61860/jigp.v4i2.322
Anderson, Sarah Elizabeth. “Transformative Pedagogy for Contemporary Education to Strengthen Competencies and Global Learning Readiness.” Nusantara Education 4, no. 2 (December 2025): 26–44. https://doi.org/10.66325/nusantaraeducation.v4i2.250. DOI: https://doi.org/10.66325/nusantaraeducation.v4i2.250
Asrori, Saifudin, Yazid Hady, Muhammad Isma’il, Ahmad B. Jalhani, and Nurdin Likia. “Integrating Waqf into Pesantren Curriculum: Strengthening Ethical Values and Economic Empowerment.” In Towards Resilient Societies: The Synergy of Religion, Education, Health, Science, and Technology, 1st ed., by Maila D. H. Rahiem, 323–28. London: CRC Press, 2025. https://doi.org/10.1201/9781003645542-52. DOI: https://doi.org/10.1201/9781003645542-52
Auliyah, Robiatul, Mohammad Nasih, and Dian Agustia. “Determinants of Business Success at Sunan Drajat Islamic Boarding School, East Java Indonesia.” Cogent Business & Management 12, no. 1 (December 2025): 2492828. https://doi.org/10.1080/23311975.2025.2492828. DOI: https://doi.org/10.1080/23311975.2025.2492828
Baharuddin, Gunawan, Dian Riskarini, Sri Widyastuti, and Fatima Azzahra. “Effect of Maqasid Al-Shariah towards Youth Motivation to Become Entrepreneur in Indonesia.” International Journal of Financial, Accounting, and Management 6, no. 4 (April 2025): 525–537. https://doi.org/10.35912/ijfam.v6i4.2598. DOI: https://doi.org/10.35912/ijfam.v6i4.2598
Bashith, Abdul, Ramadhani Lausi Mkumbachi, Muh. Yunus, Saiful Amin, Dwi Sulistiani, and Abdul Malik Karim Amrullah. “Nexus of Economic Teaching in Religious Education: A Case Study of Islamic Boarding Schools in Indonesia.” Cogent Education 12, no. 1 (December 2025): 2486633. https://doi.org/10.1080/2331186X.2025.2486633. DOI: https://doi.org/10.1080/2331186X.2025.2486633
Billah, Mohd Ma’Sum, Rusni Hassan, Razali Haron, Romzie Rosman, and Akhtarun Naba’ Billah, eds. Islamic Green Finance: A Research Companion. London: Routledge, 2024. https://doi.org/10.4324/9781032672946. DOI: https://doi.org/10.4324/9781032672946
Fajarwati, Saktika Rohmah, Jajat Sudrajat Ardiwinata, Asep Saepudin, and Yanti Shantini. “Model of Entrepreneurship Education in Islamic Boarding Schools in The Entrepreneurship Program at Al-Ittifaq Islamic Boarding School in Bandung Regency.” December 31, 2025, 24–34. https://doi.org/10.2991/978-2-38476-525-6_4. DOI: https://doi.org/10.2991/978-2-38476-525-6_4
Farida, Umma, and Abdurrohman Kasdi. “Women’s Roles in Iḥyā’ ‘Ulūm al-Dīn and Method of Teaching It at Pesantrens in Indonesia.” Al-Jami’ah: Journal of Islamic Studies 59, no. 1 (June 2021): 1. https://doi.org/10.14421/ajis.2021.591.163-190. DOI: https://doi.org/10.14421/ajis.2021.591.163-190
Fatarib, Husnul, Zezen Zainul Ali, Nur Aziz Arifin, Abdul Najib, and Muhammad Nur Fathoni. “Progressive Legal Reasoning in Contemporary Islamic Legal Reform: Negotiating the Maqāṣid and Hermeneutic Approaches.” JURIS (Jurnal Ilmiah Syariah) 24, no. 2 (December 2025): 277–294. https://doi.org/10.31958/juris.v24i2.16123. DOI: https://doi.org/10.31958/juris.v24i2.16123
Fauzan, Fauzan, Ismail Al Farooqi, Ana Pratiwi, and Nur Ika Mauliyah. “Integration of Islamic Social Finance for Sustainable Economic Development in the Rural Areas of Situbondo Regency, East Java, Indonesia.” Journal of Islamic Economics Perspectives 7, no. 1 (February 2025): 98–109. https://doi.org/10.35719/ahvk1x86. DOI: https://doi.org/10.35719/ahvk1x86
Fitri, Silvia, Neng Lilis, Lutfiani Azhar, Zulfa Nafisa, and Dita Fitria. “Pesantren Policy Management in Student Empowerment Functions.” MANAGERE : Indonesian Journal of Educational Management 3, no. 3 (December 2021): 152–159. https://doi.org/10.52627/ijeam.v3i3.160. DOI: https://doi.org/10.52627/managere.v3i3.98
Hadi, Widad Ulfatul Mawaddah, Umrotul Khasanah, and Khusnudin Khusnudin. “The Strategy of Islamic Boarding School-Owned Enterprises in Supporting Economic and Educational Sustainability at the Nurul Jadid Paiton Probolinggo Islamic Boarding School.” Al-Afkar, Journal For Islamic Studies 9, no. 1 (January 2026): 329–353. https://doi.org/10.31943/afkarjournal.v9i1.2805.
Hakim, Sofian Al, Mohamad Sar’an, Ah Fathonih, and Agi Attaubah Hidayat. “Contextualising Sharīʿah Economic Law: The Role of Pesantren in Indonesia’s Socio-Legal Landscape.” Jurnal Ilmiah Mizani: Wacana Hukum, Ekonomi Dan Keagamaan 12, no. 2 (September 2025): 479–496. https://doi.org/10.29300/mzn.v12i2.7926. DOI: https://doi.org/10.29300/mzn.v12i2.7926
Harjawati, Tri, Sumiati, Siti Aisjah, and Kusuma Ratnawati. “Integrated Business Strategies in Islamic Boarding School-Based Businesses: A Qualitative Phenomenological Study on Human Resource Management, Cooperation, Marketing, Production, and Finance.” Cogent Business & Management 13, no. 1 (January 2026): 2607801. https://doi.org/10.1080/23311975.2025.2607801. DOI: https://doi.org/10.1080/23311975.2025.2607801
Hermanto, Doki. “Curriculum Management for Strengthening Religious Moderation in Islamic Boarding Schools Al Mukmin.” Nusantara Education 2, no. 2 (December 2023): 92–103. https://doi.org/10.66325/nusantaraeducation.v2i2.84. DOI: https://doi.org/10.66325/nusantaraeducation.v2i2.84
Hidayah, Nur Putri, Quincy R. Cloet, and David Pradhan. “The Implementation of Labor Development Principles According to Job Creation Law as a Reason to Protect Wages Rights.” BESTUUR 9, no. 1 (August 2021): 68–76. https://doi.org/10.20961/bestuur.v9i1.49252. DOI: https://doi.org/10.20961/bestuur.v9i1.49252
Husna, Faiqatul, Umlina Mukhlas, and Nur Rohim Yunus. “Muadalah Policy as a Formal Recognition Solution for Non-Formal Pesantren Education under Law Number 18 of 2019.” MIZAN JOURNAL OF ISLAMIC LAW 13, no. 2 (December 2025): 288–306. https://doi.org/10.32832/mizan.v13i2.22616.
Hutchinson, Terry. “Doctrinal Research: Researching the Jury.” In Research Methods in Law, 3rd ed. Routledge, 2025. DOI: https://doi.org/10.4324/9781032710372-2
Jaiyeoba, Haruna Babatunde, Mohammad Aizat Jamaludin, Saheed Abdullahi Busari, and Yusuff Jelili Amuda. “The Implications of Maqasid Al-Shari’ah for Integrated Sustainability Practices among Businesses: A Qualitative Inquiry.” Qualitative Research in Financial Markets 17, no. 3 (August 2024): 511–531. https://doi.org/10.1108/QRFM-09-2023-0222. DOI: https://doi.org/10.1108/QRFM-09-2023-0222
Jannah, Lu’luatul, and Ainol Yaqin. “Building Islamic Boarding School Economic Independence through Cooperatives: The Role of Edupreneurship.” Journal of Educational Management Research 4, no. 4 (July 2025): 1429–1444. https://doi.org/10.61987/jemr.v4i4.1006. DOI: https://doi.org/10.61987/jemr.v4i4.1006
Jufri, Muwaffiq, Safi Safi, Paul Atagamen Aidonojie, Zaini Zaini, and Yusuf Ibrahim Arowosaiye. “Religion and State in Islamic Constitutional Law: The Role of Pesantren in Strengthening Symbiotic Islam and the State in Madura.” Justicia Islamica 21, no. 2 (November 2024): 221–246. https://doi.org/10.21154/justicia.v21i2.9283. DOI: https://doi.org/10.21154/justicia.v21i2.9283
Karim, Abdul, Oman Fathurohman, Sulaiman, Lina Marliani, Fakhri Fajrin Kurniawan, Firman Nugraha, Muaripin, Fitri Meliani, Mohammad Ridwan, and Risbon Sianturi. “Islamic Spiritual Leadership of Kyai in Fostering Santris’ Entrepreneurial Spirit and Independence in Boarding School.” Social Sciences & Humanities Open 12 (January 2025): 101817. https://doi.org/10.1016/j.ssaho.2025.101817. DOI: https://doi.org/10.1016/j.ssaho.2025.101817
Krismiyarsi, Krismiyarsi, and Rayno Dwi Adityo. “The Urgency of Community Service Imposed as Punishment on Juvenile Delinquents: A Study of al- Shatibi’s Maqhasid al-Syariah Concept.” De Jure: Jurnal Hukum Dan Syar’iah 17, no. 1 (April 2025): 132–148. https://doi.org/10.18860/j-fsh.v17i1.31246. DOI: https://doi.org/10.18860/j-fsh.v17i1.31246
Moslimany, Raqib, Anzar Otaibi, and Frugo Shaikh. “Designing a Holistic Curriculum: Challenges and Opportunities in Islamic Education.” Journal on Islamic Studies 1, no. 1 (June 2024): 52–73. https://doi.org/10.35335/beztg009. DOI: https://doi.org/10.35335/beztg009
Mufid, Mohammad, Eka Puspa Dewi, and Sebastiana Viphindrartin. “A Business Ecosystem Model of Pesantren’s Economic Self-Reliance: A Lesson Learn of Sidogiri for Pesantren in Jember.” December 26, 2025, 115–129. https://doi.org/10.2991/978-94-6463-956-8_10. DOI: https://doi.org/10.2991/978-94-6463-956-8_10
Muhyiddin, Dandy Sobron, Nurwadjah Ahmad, Andewi Suhartini, Hisam Ahyani, and Naeli Mutmainah. “Community Economic Empowerment Through the ‘One Pesantren One Product’ Program at Pagelaran III Islamic Boarding School, Subang, Indonesia.” Journal of Islamic Economics Lariba, August 12, 2022, 101–122. https://doi.org/10.20885/jielariba.vol8.iss1.art7. DOI: https://doi.org/10.20885/jielariba.vol8.iss1.art7
Muiz, Abdul, Siti Qurratul Aini, and Mohd Shahid Bin Mohd Noh. “Advancing Sustainable Economic Empowerment in Pesantren by Community-Based Development Theory.” IQTISHODUNA: Jurnal Ekonomi Islam 14, no. 1 (2025). https://doi.org/https://doi.org/10.54471/iqtishoduna.v14i1.1803. DOI: https://doi.org/10.54471/iqtishoduna.v14i1.1803
Mukri, Syarifah Gustiawati, and Gilang Rizki Aji Putra. “Legalitas Pesantren Sebagai Lembaga Pendidikan Keagamaan Masyarakat Indonesia.” BULETIN ADALAH 6, no. 5 (July 2022): 1–10. https://doi.org/10.15408/adalah.v6i5.27007. DOI: https://doi.org/10.15408/adalah.v6i5.27007
Mustaqim, Muhamad, and Ahmad Atabik. “Challenges in Implementing the Pesantren Endowment Fund: A Study of Presidential Regulation Number 82 Of 2021 On Operational Funding of Pesantren.” Jurnal Hukum 40, no. 1 (June 2024): 129–140. https://doi.org/10.26532/jh.v40i1.39042. DOI: https://doi.org/10.26532/jh.v40i1.39042
Mustofa, Imam, Wahyu Setiawan, Ibnu Akbar Maliki, and Umar Chamdan. “The Authority of Texts in the Dynamics of Ijtihad on Fiqh Mu’amalah Among Santri in Indonesia.” El-Mashlahah 14, no. 2 (December 2024): 381–408. https://doi.org/10.23971/el-mashlahah.v14i2.8074. DOI: https://doi.org/10.23971/el-mashlahah.v14i2.8074
Muttaqin, Ahmad Ihwanul. “Institutional Adaptation of Islamic Boarding Schools in Indonesia: Balancing Tradition and Modern Education.” Al-Tanzim: Jurnal Manajemen Pendidikan Islam 9, no. 3 (October 2025): 1016–1029. https://doi.org/10.33650/al-tanzim.v9i3.11585. DOI: https://doi.org/10.33650/al-tanzim.v9i3.11585
Nagib, Muhammad, Eliana Wulandari, and Hepi Hapsari. “Implementation of The Chili Commodity Agricultural Financing Program at Islamic Boarding Schools: Case in The Al-Ittifaq Islamic Boarding School Network, Bandung Regency.” Jurnal Agrinika: Jurnal Agroteknologi Dan Agribisnis 7, no. 2 (September 2023): 79–89. https://doi.org/10.30737/agrinika.v7i2.2665. DOI: https://doi.org/10.30737/agrinika.v7i2.2665
Oktarina, Amimah, Jaka Sriyana, Akhsyim Afandi, and Abdul Hakim. “The Ethical Identity Index Based on Contemporary Maqaṣid Al-Sharīʿah in Islamic Banking in Indonesia.” MILRev: Metro Islamic Law Review 5, no. 1 (2026): 379–402. https://doi.org/10.32332/milrev.v5i1.12778. DOI: https://doi.org/10.32332/milrev.v5i1.12778
Palguna, I. Dewa Gede, Ita Nurjanah, Ni Komang Tari Padmawati, I. Komang Dananjaya, and I. Made Halmadiningrat. “Indonesia’s Constitutional Court Decisions on Outsourcing Scheme: Balancing Protection and Efficiency?” Journal of Indonesian Legal Studies 8, no. 2 (November 2023): 405–452. https://doi.org/10.15294/jils.v8i2.66507. DOI: https://doi.org/10.15294/jils.v8i2.66507
Qizam, Ibnu, Izra Berakon, and Herni Ali. “The Role of Halal Value Chain, Sharia Financial Inclusion, and Digital Economy in Socio-Economic Transformation: A Study of Islamic Boarding Schools in Indonesia.” Journal of Islamic Marketing 16, no. 3 (November 2024): 810–840. https://doi.org/10.1108/JIMA-03-2024-0108. DOI: https://doi.org/10.1108/JIMA-03-2024-0108
Rahman, Tunis Abu Bakr, Widad Mahdi Jasim, and Nooruldeen Mustafa Al-Gburi. “Legal and Sharia Analysis of Commercial Paper Discounting and Islamic Banking Finance Alternatives.” Nusantara: Journal of Law Studies 5, no. 1 (February 2026): 84–101. https://doi.org/10.5281/zenodo.18676735.
Raimi, Lukman, and Nurudeen Babatunde Bamiro. “Role of Islamic Sustainable Finance in Promoting Green Entrepreneurship and Sustainable Development Goals in Emerging Muslim Economies.” International Journal of Social Economics 53, no. 2 (January 2026): 181–196. https://doi.org/10.1108/IJSE-05-2024-0408. DOI: https://doi.org/10.1108/IJSE-05-2024-0408
Ramadhita, Ramadhita, Sudirman Sudirman, and Syabbul Bachri. “Model of Zakat Utilization in the Covid-19 Pandemic Era: Perspective of Maqashid Sharia.” Al-Istinbath : Jurnal Hukum Islam 7, no. 1 (May 2022): 245. https://doi.org/10.29240/jhi.v7i1.4462. DOI: https://doi.org/10.29240/jhi.v7i1.4462
Rasidin, Mhd, Doli Witro, Darti Busni, Andri Nurjaman, and Marjai Afan. “Analysing the Pesantren Tradition of Arranged Marriages from the “Kupi Fatwa Trilogy†Perspective.” Al-Istinbath: Jurnal Hukum Islam 9, no. 1 (May 2024): 285–308. https://doi.org/10.29240/jhi.v9i1.8436. DOI: https://doi.org/10.29240/jhi.v9i1.8436
Robani, Anidah, Amiruddin Ahamat, Syed Najmuddin Syed Hassan, Hilman Latief, and Amelia Pratiwi. “Islamic Solidarity Economy: The Case Study of Social Entrepreneurship in Pesantren, Indonesia.” Middle East J. of Management 9, no. 6 (2022): 665. https://doi.org/10.1504/MEJM.2022.126316. DOI: https://doi.org/10.1504/MEJM.2022.126316
Rouf, Abdur, Fatah Syukur, and Samsul Maarif. “Entrepreneurship in Islamic Education Institutions: Pesantren Strategy in Responding to the Industrial Revolution 4.0.” Tafkir: Interdisciplinary Journal of Islamic Education 5, no. 2 (April 2024): 250–265. https://doi.org/10.31538/tijie.v5i2.1115. DOI: https://doi.org/10.31538/tijie.v5i2.1115
Sahputri, Rindi Ardika Melsalasa, Mukhammad Kholid Mawardi, Tri Yumarni, and Sujarwoto. “Entrepreneurship Education, Family Entrepreneurial Orientation and Entrepreneurial Intention among Students in Indonesia.” Journal of International Education in Business 16, no. 3 (June 2023): 295–311. https://doi.org/10.1108/JIEB-02-2022-0010. DOI: https://doi.org/10.1108/JIEB-02-2022-0010
Sulaeman, Sulaeman, Sri Herianingrum, Muhamad Nafik Hadi Ryandono, Rodame Monitorir Napitupulu, Meri Indri Hapsari, Hafas Furqani, and Zakaria Bahari. “Islamic Business Ethics in the Framework of Higher Ethical Objective (Maqasid al-Shariah): A Comprehensive Analysis and Future Research Directions.” International Journal of Ethics and Systems, December 2, 2025, 1–29. https://doi.org/10.1108/IJOES-12-2024-0398. DOI: https://doi.org/10.1108/IJOES-12-2024-0398
Suliswanto, Muhammad Sri Wahyudi, Mohd Mahyudi, and Mohd Nizam Barom. “A Maqasid-Based Welfare Index in Indonesia: An Empirical Investigation.” Journal of Islamic Monetary Economics and Finance 11, no. 1 (February 2025): 119–146. https://doi.org/10.21098/jimf.v11i1.2098. DOI: https://doi.org/10.21098/jimf.v11i1.2098
Syadzily, Tb Ace Hasan. “An Examination of Pesantren Regulatory Policy within the Framework of National Resilience.” Jurnal Lemhannas RI 13, no. 2 (June 2025): 169–182. https://doi.org/10.55960/jlri.v13i2.1099. DOI: https://doi.org/10.55960/jlri.v13i2.1099
Wibowo, Agus, Sri Umi Mintarti Widjaja, Sugeng Hadi Utomo, Djoko Dwi Kusumojanto, Cipto Wardoyo, Ludi Wishnu Wardana, and Bagus Shandy Narmaditya. “Does Islamic Values Matter for Indonesian Students’ Entrepreneurial Intention? The Mediating Role of Entrepreneurial Inspiration and Attitude.” Journal of Islamic Accounting and Business Research 13, no. 2 (February 2022): 242–263. https://doi.org/10.1108/JIABR-03-2021-0090. DOI: https://doi.org/10.1108/JIABR-03-2021-0090
Zakaria, Abd Razak, Karwadi -, Ali Mumin Budiman, Mubarok Fatahillah, and Abd. Rasyid M. Akib. “Strategic Management Practices in Pesantren: Innovations for Enhancing Educational Quality and Organizational Sustainability.” Malaysian Online Journal of Educational Management 13, no. 2 (April 2025): 86–97. https://doi.org/10.22452/mojem.vol13no2.5. DOI: https://doi.org/10.22452/mojem.vol13no2.5
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Anas Alhifni, Biyati Ahwarumi, Radif Khotamir Rusli, Ramadhita, Firdaus Arifin, Naim Demirel
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
