The Determinants of Creative Economy in Developing the Independence of Pesantren

This study aims to analyse the determinants that significantly correlate to the development of the entrepreneur model of pesantren (Islamic boarding school) in Indonesia and to examine the contribution of the pesantren entrepreneur model to the independence of pesantren. This research is a quantitative study using panel data of pesantren in DKI Jakarta, West Java, Central Java, East Java, East Kalimantan, South Sumatra, West Sumatra and North Sumatra. The number of pesantren businesses is the independent variable. Meanwhile, the land area, labour, number of santri (students), number of ustadz/ustadzah (teachers) and the existence of government subsidies are the dependent variables. As result, the area of land, labour and the number of teachers have positive impacts on the number of pesantren businesses. Whereas the variables of student numbers and the existence of subsidies have negative impacts on the number of pesantren businesses. The novelty of this research is to give the appropriate innovation model in the development of pesantren entrepreneurs. This model is expected to be a solution to improve the capacity of pesantren, so they can contribute to national economic development. In terms of practical implications, the leaders of pesantren can manage land resources, labour and teachers in increasing the productivity of pesantren entrepreneurs and evade subsidies due to the risk of the decreasing independence of pesantren. Keywords: Creative Economy, Independence of Pesantren, Pesantren Entrepreneur