Productive Waqf and SME Empowerment in Pesantren: A Literature Review on Economic Impacts

Abstract

Pesantren occupy a strategic position in Indonesia's sharia economic ecosystem, owning sizeable waqf assets while serving large rural populations underserved by formal financial institutions. This article examines how productive waqf contributes to small and medium enterprise (SME) empowerment within pesantren environments, drawing together findings reported across the recent academic literature. A systematic literature review was conducted following the PRISMA 2020 protocol, screening publications indexed in Scopus, DOAJ, Sinta-accredited journals, and Google Scholar for the period 2015 to 2025. After applying inclusion and exclusion criteria, 38 peer-reviewed articles were retained for thematic synthesis. The review identifies three dominant institutional models: Bank Wakaf Mikro under OJK supervision, pesantren business units financed through land and cash waqf, and Cash Waqf Linked Sukuk channelled to pesantren-based development projects. Documented economic impacts include expanded access to non-collateral sharia financing, higher household income among santri families and surrounding micro-entrepreneurs, employment generation through pesantren-owned enterprises, and stronger asset productivity. Recurring constraints include weak nazir capacity, limited financial literacy, fragmented coordination among regulators, and slow digital adoption. The article concludes that productive waqf functions effectively as a catalyst for SME empowerment when pesantren operate as both nazir and enabling ecosystem, but only where governance capacity, regulatory clarity, and digital infrastructure progress in parallel.