The Growth Pole Approach to Islamic Boarding School Economic Development: Opportunities and Challenges of LKS in Islamic Boarding Schools

Abstract

Community economic development can be done through various financial institutions. Establishing Islamic boarding schools as basis for spreading religious values is great potential for growth to Islamic finance. Micro Waqf Banks (BWM) and Islamic Boarding School Cooperatives (Kopontren) are Islamic financial institutions established in Islamic boarding schools. The existence of these two financial institutions will certainly lead to sustainable economic growth (growth pole). This research examines the growth pillar approach to economic development of Islamic boarding schools. This research method is qualitative research using descriptive analysis. This analysis provides an overview or description of the research subject based on variable data from certain subject groups. The results of this study explain that the growth pole that occurs in Islamic boarding schools' economic development can create a spread effect and backwash effect to utilize quality human resources in economic development activities through LKS at Islamic Boarding Schools. Opportunities faced by LKS in Islamic Boarding Schools are related to the projected number of customers in all Micro Waqf Banks and Kopontren and the challenge of the projection related to the risk of problematic customers.