Three other Islamic boarding schools are participating in the business unit management program by the central bank's representative office in Jambi -- Sarolagun Almanar Islamic Boarding School, Jambi As'ad Islamic Boarding School, and Al Muttaqin Islamic Boarding School.
Head of Batanghari Ummul Masakin Islamic Boarding School Foundation Nizomuddin said on Monday (August 9) that the business unit in the school has served as a medium for students, alumni, and the school management to gain entrepreneurship skills.
The central bank has been guiding Ummul Masakin Islamic Boarding School on the development of horticulture and fishery businesses since 2020.
The school's horticulture business is currently at the third stage. The school harvested 6 tons of long beans in the first stage and 7 tons of cucumbers in the second stage.
The school is also cultivating catfish, an endeavor that has been as fruitful as the horticulture business, he added.
In the first stage, the school and Bank of Indonesia, Jambi had planted 10 thousand catfish seeds. In the next stage, another 21 thousand catfish seeds were added.
The harvests from both the fishery and farm units are sold in nearby markets, namely in Muaro Bulian area and Jambi Talang Gulo Market. Merchants from Bungo, Tebo, and Sarolangun come directly to the school to buy catfish.
According to Nizomuddin, the students and alumni have benefited from the business units, which have served as mediums of learning for them and have allowed them to gain knowledge and apply it outside the school environment.
Another benefit has been extra funding for the school's operation. Alumni who have participated in the development of the business unit have also benefited from the program.
At least 10 alumni gained extra income assisting in the businesses' growth, which in turn eased their tuition fee, Nizomuddin said.
The school's business units have also led to the emergence of new entrepreneurs and farmers in Jambi. BI has also assisted in the development of a water depot business.
Head of BI's Jambi representative office Suti Masniari Nasution, the program is aimed at several Islamic boarding schools and is a part of sharia economy development.
Nasution stressed that the business unit development in Islamic boarding schools has benefited the economy as well as students, who have obtained vital entrepreneurship training. BI has offered guidance and analysis of their facilities in order to let the Islamic boarding school's potential to develop.
BI expects the program to help Islamic boarding schools become economically independent, so they can be centers of economy for their surrounding communities.
The central bank has carried out efforts to develop business units in Islamic boarding schools for the past few years. The schools participating in their program have received assistance and guidance in business development in several sectors.
The economic independence of schools could be a new source of economic growth in Jambi, which would push the region's economy, Nasution said.
Currently, BI has noticed the potential for the development of water depots at Islamic boarding schools. An analysis showed that access to clean water was a common problem in Islamic boarding schools, notably water for general use or drinking water for the students, she said.
The central bank allocated drinking water processors to the schools so students could consume clean water.
Amid a national and regional economic recovery, economic transformation is needed in order to strengthen the national economic structure. The transformation can be brought about by strengthening leading sectors, including economic development and Islamic finance as a source of new economic growth, she suggested.
At the opening of the Serambi 2021, Jambi Provincial Secretary Sudirman said that the Islamic boarding school economic development program had been carried out by Bank Indonesia's Jambi representative office since 2017.
Currently, four Islamic boarding schools are receiving guidance from BI in terms of achieving economic independence through business units, he noted.
"For 2021, the targets of Islamic boarding schools economic development program from BI Jambi are two existing Islamic boarding schools and two new Islamic boarding schools," Sudirman added.
The push for economic independence of the Islamic boarding schools is also a part of efforts to encourage the progress of the sharia economy, which prioritizes the principles of justice, equality, and mutual benefit.
Sharia economic development can be applied to various business sectors such as trade, agriculture, and financial services, he added.
Economic growth can be stimulated by Islamic boarding school's economic independence, which can be developed through their business units, he remarked.
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Translator: Syarif A, Tuyani, Mecca Yumna
Editor: Sri Haryati
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