Bank Indonesia Plans To Create A Holding Business For Islamic Boarding Schools, Called Hebitren

BI Senior Deputy Governor Destry Damayanti. (Photo: By courtesy)

JAKARTA - Bank Indonesia (BI) plans to establish a holding for Islamic Boarding Schools or Hebitren Business Economics Association in the near future.

BI Senior Deputy Governor Destry Damayanti said the initiation was based on the uniqueness of the Islamic boarding schools as well as Indonesia's competitive advantage in developing the Islamic economy in the existing ecosystem.

"This potential is reflected in the size of the Islamic boarding school community with more than 27.700 locations throughout Indonesia and 4 million students involved in it", she said at the National Seminar on Sharia Economics and Finance which was broadcasted virtually, Wednesday, April 21.

According to Destry, these potential causes Islamic boarding school to become a strategic force and a key player in the halal industry that supports the national economy.

"The economic activity in the pesantren has actually been started for a long time but has not been optimal. Therefore, Bank Indonesia will empower Islamic boarding school through the establishment of the Islamic Boarding School (Pesantren) Business Economic Association holding company. This will be one of our priorities to be developed", she said.

Destry added that the dreamed Islamic boarding school business holding will later embrace business units in the form of cooperatives and many Islamic boarding schools in nearby areas.

"The effort to establish a holding company is in line with Bank Indonesia's steps to strengthen policy implementation in order to increase the role of MSMEs, including sharia business units in Islamic boarding schools through the concept of corporatization", she explained.

Through the formation of this holding, continued Destry, not only will the Islamic boarding school's economic activity get bigger, but also have strong bargaining power, especially in determining prices.

"In the end, this will increase the independence of the pesantren in carrying out their main activities", she added.

The senior economist also predicts that the formation of pesantren holding companies will expand financial inclusion even more than before.

"The holding of this holding will increase access to finance, and market access, including improving the management of pesantren in a more professional manner", she said.

"Hebitren is expected to be able to actively contribute to the development of sharia businesses in supporting national economic recovery in the midst of a pandemic. Various business sectors are developed, such as integrated agriculture, food processing industry, clothing industry, renewable energy and other sharia businesses which will be integrated into larger business units", Destry concluded.