'Pesantren' struggles to survive financial crux

'Pesantren' struggles to survive financial crux

Damar Harsanto and Sri Wahyuni, The Jakarta Post, Gresik, East Java

Pesantren (Islamic boarding schools) have from the very
beginning primarily performed a religious mission, which is to
disseminate Islam through education, with little thought of
financial gain.

Most schools rely on local residents for their daily needs. In
some cases, people also donate land and buildings to the schools.

Nowadays, however, pesantren must be more realistic as they
have to manage financial matters to ensure their survival or
bolster their development amid the country's protracted economic
crisis.

Every pesantren leader seems to have his own policy in coping
with money matters, mostly noting that money is a sensitive issue
which must be handled carefully.

Some remain conservative by relying mostly on tuition fees
from students or donations from benevolent parents. Others have
adopted relatively modern measures like submitting proposals to
get assistance from foreign donors or the government.

"We have never requested help from others, including the
government ... it spells more trouble than good," said Kyai
(cleric) Masbuhin Faqih, the leader of Mamba'us Solihin in
Manyar, Gresik, East Java.

Faqih said his pesantren relied on students' fees which are
around Rp 100,000 a month. The amount covers the monthly tuition
fee, development of the pesantren's facilities, and two meals a
day.

"We are planning to increase the fee to Rp 120,000 due to the
rising cost of basic commodities," Faqih said.

Faqih added that the fee was sufficient to cover operational
costs, thanks to additional money from generous parents.

"We continue to receive financial support," he said proudly,
showing The Jakarta Post two envelopes containing money from
visiting parents who interrupted the interview.

Faqih said he was also planning to secure a larger income from
several small cooperatives run by his family as commercial
ventures to support the pesantren.

He owns two cooperatives, one supplying basic commodities to
small kiosks in the neighborhood, and another selling
construction supplies. The monthly net income is Rp 2 million and
Rp 500,000 respectively. In addition, he has a farm with 14 cows.

The presence of a pesantren, as in the case of Faqih's, also
helps make business in the pesantren's neighborhood thrive. Food
stalls and stationery shops owned by locals are seen mushrooming
around the pesantren to cater to student needs.

Unlike Faqih's conservative approach to finance, the Al Amien
Prenduan Islamic boarding School in Madura and Darul Ulum Islamic
boarding School in Jombang, East Java, have a more liberal
approach towards donations.

"We have been receiving money from foreign donors, mostly
individual donors from the United Arab Emirates and Middle
Eastern countries, to build facilities and infrastructure here.
But, none of the donations are binding nor are there conditions
attached which may affect the pesantren's policies and
activities," said Kyai Maktum Jauhari, one of the leaders of Al
Amien Prenduan.

Maktum said pesantren leaders were not allowed to handle money
directly but "we always hire professionals to handle our
financial reports. Those reports are subject to annual audit."

Kyai As'ad Umar, the leader of the Darul Ulum Islamic boarding
school in Jombang, East Java, was even more liberal and took
advantage of his affiliation to Golkar Party, notorious for its
corruption and collusion during the tenure of President Soeharto,
although taking the risk of tainting the school's image.

"My affiliation with Golkar is a personal tactic to help
finance my school, and I take responsibility for any blame,"
As'ad argued.

Thanks to Golkar's support, As'ad now has a huge fund, the
interest on which is "sufficient to cover the hefty operational
costs of Rp 265 million a month," in addition to 14 school
buildings -- from elementary school to university level -- on
over 32 hectares of land.

As'ad is even planning to construct a hospital in cooperation
with a university in Perth, Australia. The planned hospital is
expected to compete with an upscale Christian hospital in
Jombang. The hospital, which is now under construction, is
expected to start operation in 2006.

As'ad argued that he never dragged his students into politics
although he disclosed that the school voted for Golkar in the
1998 ballot.

Some pesantren, like the Islamic Institute for Fiqh and Dakwah
studies in Bangil, Pasuruan, East Java are facing financial
difficulties.

The small school, which was established in 1984, is suffering
from a significant drop in the number of students, from over 100
students to less than 20 students now.

"The school began having financial problems when Kyai Muhammad
Baidullah, one of the school leaders whose relatives in Mecca
always sent money to help cover expenses, died in 1995," said the
school leader, Muamal Hamidy.

Muamal said the school did not have plans to invest money to
look for financing alternatives.

"We are hoping for help from our successful graduates," he
said.