Islamic Boarding School Cooperatives as an Instrument for Empowering the Community\u27s Economy: Analysis of Islamic Economic Law

Abstract

This study seeks to examine the role of Islamic boarding school cooperatives in fostering community economic empowerment and to assess their alignment with the principles of Islamic economic law. This study is a field study, especially at the Musthafawiyah and Al Abrar Islamic Boarding Schools. Data from Islamic boarding school cooperatives were observed, interviews were conducted with cooperative leaders and members, and relevant documentary data related to cooperatives were collected. The data obtained were then analyzed to identify relevant information. Furthermore, related data were classified and synthesized to obtain a comprehensive picture before being presented in a structured form. The novelty of this study lies in its emphasis on enhancing the economic independence of Islamic boarding schools through the development of cooperatives with diverse business units. This approach enables Islamic boarding schools to move beyond dependence on government funding and actively contribute to community economic empowerment. This study also analyzes Islamic boarding school cooperatives from the conceptual and applied perspective of Islamic economic law in Islamic boarding schools that combine Salafiyah values ​​with community economic development. Based on the analysis of Islamic economic law, practices in Islamic boarding school cooperative business units utilize the principle of murabahah, namely the principle of buying and selling that is free from usury and uncertainty, so that Islamic legal theories in transactions can be directly applied both in Islamic boarding school environments and in the surrounding community. The findings suggest that integrating cooperatives within Islamic boarding schools (pesantren) holds significant potential to enhance inclusive community economic resilience while cultivating an entrepreneurial spirit rooted in contextual and grounded Islamic values