No Longer an Alternative: It's Time for the Islamic Economy to Lead from Pesantren

The world today is not in good shape. Food crises, surging inflation, geopolitical conflicts, and uncertainty in the global financial system serve as loud alarms that the economic foundation we have relied on is crumbling. A system built on debt, speculation, and accumulation by a few has proven to breed sharp inequality and injustice.

Amid this global turbulence, Indonesia possesses a frequently overlooked strength: the Islamic economic ecosystem based on pesantren (Islamic boarding schools). I see this not as a theory, but as a living reality. In many regions, when the formal economy stalls, pesantren continue to function. Their kitchens remain active, educational activities persist, and economic interactions stay alive. Students farm, trade, produce goods, and manage their lives with values of self-reliance. Pesantren are miniatures of a community-based economy that is resilient to crises.

The Islamic economy must no longer be positioned as an alternative, let alone merely a normative discourse. It must be elevated to become a mainstream system driven collectively. For this, we need a strong, tested locomotive with a vast network. Pesantren are the answer.

With more than 30,000 pesantren and millions of students and alumni, we possess the largest social infrastructure in this country. If this entire network is consolidated, we are not just talking about educational strength, but the enormous economic power of the ummah. Imagine an ecosystem where every pesantren becomes an economic hub: Pesantren A produces organic rice, Pesantren B processes it into food products, Pesantren C becomes a distribution centre, and alumni in cities form a digital marketing network. All are connected in a mutually reinforcing halal value chain. Money circulates within the ummah’s ecosystem, rather than flowing out to unsupportive systems.

This is where the role of strategic instruments like the Pesantren Endowment Fund becomes crucial. This fund is not merely aid, but a foundation for long-term self-reliance. When managed productively and combined with sharia economic instruments such as cash waqf, productive zakat, and halal investment, we are building an economic engine that not only survives but grows.

However, we must be honest: this vast potential has not yet been optimally managed. Challenges in governance, financial literacy, digitalisation, and fragmentation among pesantren remain collective homework. Therefore, we cannot walk alone. It is time to move together. There are several technical stages we must immediately undertake collectively: First, data consolidation and strength mapping. We must have a large map of the pesantren ecosystem: who produces what, where they are located, and what their needs are. Without data, we cannot build an integrated network. Each region needs to form an economic coordination centre for pesantren. Second, standardisation and governance strengthening. Pesantren need assistance to develop transparent, accountable, and professional financial systems without losing their local wisdom values. This is important so that access to financing, including the Pesantren Endowment Fund, can be optimally utilised.

Third, the development of pesantren-based economic clusters. Not all pesantren should do the same thing. We need to build clusters: some pesantren focus on agriculture, the halal industry, digital services, or other services. These clusters are then connected in a mutually supportive supply chain. Fourth, ecosystem digitalisation. We need a shared platform—a super platform for the pesantren economy—that connects production, distribution, and financing. From a marketplace for pesantren products, a sharia payment system, to a dashboard for waqf investment and endowment funds.