Leveraging Waqf and Endowment for Sustainable Pesantren Development in Sumatra: Evidence from Pondok Modern Cahaya Al-Qur'an (PMCA) and the Emerging Productive Pesantren Ecosystem in Dumai, Indonesia

Abstract

Many pesantren in Indonesia remain financially dependent on tuition fees and charitable donations, which limits their capacity for long-term development. This study examines how waqf and endowment can be leveraged as strategic instruments for sustainable pesantren development in Sumatra. Using a qualitative descriptive design that combines library research with a case study, the study analyzes literature on waqf, endowment, sustainability, and Islamic social finance alongside the institutional records of Pondok Modern Cahaya Al-Qur'an (PMCA) in Dumai, Riau Province. The findings show that Indonesia's waqf potential remains largely underutilized: less than two percent of the estimated annual cash waqf potential has been mobilized. PMCA, established in 2020, has developed diversified productive units (a palm oil plantation, cattle and duck farming, VCO production, herbal products, a student canteen, and Umrah services) that generate approximately 53.9 percent of its annual revenue of Rp2 billion. PMCA also operates within an emerging productive pesantren cluster in Dumai together with Al-Harokah, Alam Qur'an, and Baitul Qur'an. Building on these findings, the study proposes a four-stage Sustainable Pesantren Waqf Framework and shows that productive waqf supports SDGs 4, 8, 9, and 17. Policy recommendations are offered for pesantren, waqf institutions, and government.