Student Spending in Islamic Boarding Schools Could Reach Rp68 Trillion Annually
The expenditure of approximately 4.3 million students in Indonesia’s Islamic boarding schools (pesantren) has the potential to create an economic turnover of up to Rp68 trillion per year. This potential stems from student consumption needs, which are estimated to range from Rp750,000 to Rp1.5 million per month.
Prof. Fasli Jalal, Secretary of the IAEI Advisory Board, stated that the Islamic education ecosystem plays a role not only in education and human resource development but also possesses significant economic activity.
“Imagine millions of students with needs for food, clothing, health, education, and daily necessities. If this spending can be linked to the production of surrounding communities and the pesantren network, then this money will not merely be consumption, but can create a value chain,” Fasli said during the National Discussion and Expert Forum of the IAEI in Jakarta on Tuesday (29/09/2026).
He estimates that with approximately 4.3 million students and monthly spending needs of Rp750,000 to Rp1.5 million, the potential spending turnover reaches about Rp34 trillion to Rp68 trillion per year.
According to Fasli, this potential can be strengthened by connecting the needs of pesantren with the production of nearby communities. Pesantren can also be developed into hubs for the halal value chain by specialising in production according to regional potential.
“Each pesantren or group of pesantren can have a production speciality based on regional potential, such as rice, eggs, fish, livestock, or other food products,” he added.
Fasli noted that this opportunity could also be linked to the Free Nutritious Meal (MBG) programme, which requires large-scale food procurement.
He encouraged the IAEI to take a role as a bridge between the Islamic education ecosystem, the government, business actors, Sharia financial institutions, and the community. In doing so, the needs of Islamic educational institutions can be aligned with community production potential, Sharia financing, and the market.