The role of pesantren in developing Indonesian women-led small businesses’ Halal industry

• Main Authors: Molasy, H. D., Ernada, S. E. Z., Eriyanti, L. D., Sova, R. Y. E., Hanif, M. R.
• Format: Conference Proceeding
• Language: English
• Subjects: Boarding schools; Certification; Economic development; Industrial development; Position indicators
• ISSN: 0094-243X; 1551-7616
• DOI: 10.1063/5.0241840

Amidst the economic crisis caused by the Covid-19 pandemic, there is a projected growth and advancement anticipated in the global halal business. The economic growth potential of the halal industry has prompted numerous countries to engage in competitive efforts to develop and expand this sector. According to the 2022 Global Islamic Economic Indicator (GIE) report, Malaysia has attained the top position in the global halal business, but Indonesia, being home to the biggest Muslim population, has secured the fourth spot. Indonesian Vice President Ma’ruf Amin has set a goal for Indonesia to become as the leading global producer of halal products by the year 2024. In order to attain this objective, it is necessary for Indonesia to enhance its halal initiatives targeting female micro, small, and medium enterprises (MSMEs), particularly those operating within Islamic boarding schools. The objective of this study is to investigate the significance of kyai (Islamic religious leaders) and Islamic boarding schools in the development of the halal business specifically for female micro, small, and medium enterprises (MSMEs) in Indonesia. The selection of Paciran-Lamongan as a research site was based on the fact that its population resides in urban regions in close proximity to industrial zones. In contrast, Kangean Island was deemed less suitable due to its low infrastructure and restricted accessibility. The present study was carried out at two different locations: the Sunan Drajat Islamic Boarding School, situated in Banjarwati Village, Paciran Regency, and the Al-Hidayah Islamic Boarding School, located in Arjasa District, Kangean Island. The gathering of data in this study was conducted through a combination of several methods, including observation, focus group discussions (FGDs), and in-depth interviews. The findings of this study indicate that there are differences in the functions performed by kyai (Islamic religious leaders) and Islamic boarding schools in the regions of Paciran Regency and Kangean Island. Islamic boarding schools and kyai in Paciran play a crucial role in providing strong assistance for the halal certification process of women’s micro, small, and medium enterprises (MSMEs). In contrast, the level of emphasis placed on halal certification attempts by kyai and Islamic boarding schools on Kangean Island tends to be limited. The level of coordination between women’s micro, small, and medium enterprises (MSMEs) and the Government is currently in