'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.