ABSTRACT
Islamic boarding schools (Pesantren) have historically been integral to Indonesian society, primarily offering Islamic education and religious instruction. Over time, their influence has expanded into social, cultural, and economic spheres. Traditionally, Pesantren operated as self-sufficient communities, sustained by agricultural activities and small-scale enterprises managed by students, laying the foundation for economic independence. Today, Pesantren have evolved by integrating vocational training into their curricula, providing students with practical skills in agriculture, craftsmanship, and entrepreneurship. This dual approach equips graduates to contribute economically to their communities, reduce unemployment, and strengthen economic resilience, aligning with Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth. This study aims to identify strategies implemented by Pesantren to enhance community economic development, analyse factors influencing their success, and offer policy recommendations to address existing challenges. Using a literature review, the study collects, evaluates, and interprets data from various sources, including journals, books, documentation, online platforms, and libraries. The findings underscore the importance of empowering small and medium-sized enterprises (SMEs) within Pesantren through initiatives such as establishing microfinance institutions, offering business training programmes, and forming cooperatives to support local SMEs and create employment opportunities.
