The integration of religious and economic education is crucial for fostering holistic development in Indonesia's pesantren (Islamic boarding schools), especially in alignment with the Sustainable Development Goals (SDGs). This approach aims to bridge traditional Islamic teachings with modern economic practices, emphasizing ethical entrepreneurship. By analyzing various entrepreneurial models within pesantren, this study explores how religious values can guide economic decisions and contribute to the achievement of SDGs, such as poverty reduction, decent work, and economic growth. This integration not only enriches students' spiritual and moral development but also equips them with practical skills for sustainable community development. And Pondok Pesantren, as Indonesia's oldest Islamic educational institution, has played a crucial role in shaping the character, morality, and knowledge of its students (santri). Historically, pesantren have served as more than just centers of religious learning [1] .

They have upheld strong ethical values, fostering faith and integrity while functioning as vital pillars of Indonesian society. However, rapid globalization and economic modernization present pressing challenges for pesantren, requiring them to adapt in ways that remain relevant to contemporary societal needs [2] . This challenge is further compounded by shifts in cultural and social dynamics, where materialism and consumer culture, propagated by media and technology, often conflict with the core values pesantren uphold [3] .

Economically, pesantren face the urgent task of preparing their students to meet the demands of a competitive labor market, characterized by low formal employment absorption [4] . This situation highlights the critical need for educational innovations that can address economic realities without compromising pesantren's core religious mission [5] . One promising approach is the integration of entrepreneurship education into the pesantren curriculum [6] . By equipping santri with entrepreneurial skills, pesantren can foster a generation capable of navigating modern economic landscapes while preserving the moral and religious teachings foundational to their mission [7] .

Entrepreneurship education in Pesantren begins with equipping Santri with essential business skills such as financial management, marketing, and leadership [8] . Beyond theoretical instruction, pesantren can establish in-house businesses that serve as practical laboratories, offering hands-on experience in managing real-world enterprises [9] . Such initiatives not only impart critical business skills but also generate income to support pesantren operations, creating a self-sustaining educational model [10] .

To enhance the effectiveness of these efforts, partnerships with the business sector offer immense potential. Collaborations could include internships, skill-specific training, and mentorship opportunities that expose Santri to modern, technology-driven business practices [11] . These partnerships can bridge the gap between traditional pesantren education and contemporary economic demands, particularly as the digital age reshapes the business landscape [12] .

Integrating entrepreneurship education with Islamic values allows pesantren to create a generation of spiritually grounded yet economically innovative santri [13] . These students are not only prepared to face global economic challenges but also empowered to become job creators, driving economic growth and community development. Consequently, pesantren have the potential to evolve from centers of religious study into dynamic hubs of economic empowerment, contributing significantly to Indonesia's broader sustainable development goals [14] .

This research aims to explore how pesantren integrate entrepreneurship education into their curricula and assess its impact on both the students and the institutions themselves [15] . Focusing on three established pesantren-Islamic Boarding School 'A' in Ngawi, Islamic Boarding School 'B' in Sukoharjo, and Islamic Boarding School 'C' in Surakarta-the study examines how these institutions have developed unique approaches tailored to local needs. By analyzing these diverse models, the research seeks to uncover effective strategies for incorporating entrepreneurship into pesantren education in ways that balance traditional values with modern demands.

Despite their historical significance and contribution to Islamic education, pesantren face increasing pressure to adapt to Indonesia's evolving socio-economic landscape [16] . While some pesantren have embraced entrepreneurship as part of their educational mission, others lag, resulting in inconsistent implementation of entrepreneurial programs. The lack of a cohesive framework or best practices for integrating entrepreneurship with Islamic teachings underscores the need for research that bridges this gap [17] .

This study also addresses the limited focus in prior research on pesantren as drivers of economic empowerment [18]. Previous studies have concentrated primarily on their role in religious and moral education, with minimal exploration of how entrepreneurship education can transform their economic potential. While some research highlights pesantren's capacity to contribute to sustainable community development, empirical evidence on the integration of entrepreneurial education remains scarce.

This research aims to analyze the practices of entrepreneurship education in pesantren, evaluating their effectiveness in equipping santri with business skills and fostering self-sufficiency, leadership, and innovation [19]. It also identifies challenges in integrating entrepreneurship, such as resource constraints and curriculum development, while assessing pesantren's potential to contribute to the economy through student-led businesses. Finally, the study provides recommendations for balancing religious values with modern business practices to enhance entrepreneurship education [20].

This study seeks to contribute to a deeper understanding of how pesantren can evolve to address the economic challenges of the 21st century while preserving their religious and moral mission [21] . Through the examination of diverse entrepreneurial education models, this research aims to provide valuable insights for policymakers, educators, and practitioners interested in promoting sustainable development within Islamic educational institutions.

The integration of religious and economic education within pesantren has garnered growing attention as a strategy to address modern socio-economic challenges while maintaining adherence to Islamic principles. Pesantren, as traditional Islamic educational institutions, are recognized for their role in fostering character development and moral education. Recent studies emphasize the importance of embedding entrepreneurship education into the pesantren curriculum to prepare students for the demands of the contemporary economic landscape [20] .

Entrepreneurship education in Islamic settings is often framed within the principles of Maqashid Shariah, which aim to preserve religion, life, intellect, progeny, and wealth. Scholars have highlighted various models, such as in-house businesses, partnership models like maklon, and contract-based systems, as effective frameworks for integrating practical economic skills with religious values. These models emphasize hands-on experience, financial literacy, and ethical business practices, enabling students to contribute to sustainable economic development [20] .

Research also explores the alignment of these initiatives with the Sustainable Development Goals (SDGs), particularly SDG 4 (quality education) and SDG 8 (decent work and economic growth). The literature underscores the transformative potential of pesantren in creating ethical entrepreneurs who balance religious values with economic empowerment. However, challenges such as resource limitations, curriculum development, and faculty training remain critical areas for improvement [21] .

This body of research provides a foundation for further exploration into the dynamic role of pesantren in shaping future-ready, ethical leaders within an Islamic framework.

This study employs a descriptive qualitative approach to analyze the implementation of entrepreneurial education models in three Islamic boarding schools (pesantren) in Indonesia: Pesantren A in Ngawi, Pesantren B in Sukoharjo, and Pesantren C in Surakarta [22] . Data were collected through structured observations, semi-structured interviews, and an analysis of relevant documents. The observations focused on entrepreneurial activities, student participation, and the integration of religious values [23] . Meanwhile, interviews with administrators, educators, and students explored program objectives, teaching methods, challenges, and outcomes. Approximately 15 documents per pesantren, including activity reports and student evaluations, were analyzed to understand the program's structure and results. Data analysis was conducted thematically using coding, categorization, and triangulation methods to ensure data consistency and reliability. Validation techniques, such as memberchecking and peer reviews, were employed to enhance the accuracy of the findings [24] .

Previous research supports this approach, demonstrating that descriptive qualitative methods are effective in understanding entrepreneurial education strategies in pesantren [25] . A study by Saerozi et al, at Pesantren Jawahirul Hikmah employed observation, interviews, and documentation to analyze the strategies and implications of entrepreneurial education. The study found that these methods effectively identify students' roles in entrepreneurial activities [26] . Additionally, Arifah examined modern pesantren and demonstrated that qualitative approaches reveal the strategic impact of entrepreneurial education on financial management in pesantren [27] .

This study also applies semi-structured interviews, as utilized in Winarno and Nadia's, research, which highlighted the importance of interviews in exploring the goals and challenges of entrepreneurial education in pesantren with a double-track approach [28] . The triangulation technique used in this study is supported by Sulistyowati's research, which demonstrated that triangulation enhances data validity in studies on Sharia-based entrepreneurship in pesantren [29] .

By adopting this approach, the research aims to provide a comprehensive overview of the implementation of entrepreneurial education models. It also examines their impact on students' skill development and the operational sustainability of pesantren.

The study explores various models of integrating entrepreneurship education within pesantren (Islamic boarding schools) in Indonesia, highlighting the impact of these educational approaches on the development of santri (students) and their preparedness for the evolving socio-economic landscape [30] . The models discussed involve practical applications of business concepts such as in-house business, maklon partnerships, and contract-based partnerships, which aim to blend religious education with economic empowerment. These models seek to prepare Santri not only with knowledge of Islamic teachings but also with entrepreneurial skills that enable them to adapt to the challenges of globalization and modern economies [31] .

Table 1. Comparison of Entrepreneurship Education Models in Pesantren provides an overview of how three pesantren (Islamic boarding schools) in Indonesia implement different models of entrepreneurship education. Each pesantren adopts a unique approach to integrate entrepreneurship into their religious education, designed to equip students with practical business skills. Here is a descriptive explanation of the table:

a. Model Type: In-House Business Model

Islamic Boarding School ‘A’ Ngawi implements the In-House Business Model, where the pesantren is directly involved in running and managing the business. In this model, the pesantren not only teaches entrepreneurship theory but also operates businesses within the pesantren environment itself.

b. Key Focus: Involvement in Business Operations

The primary focus of this model is to provide students with hands-on experience in all areas of business operations run by the pesantren, from management to marketing and production.

c. Skills Developed: Business Management, Marketing, Finance

Students at Gontor Putri Mantingan develop skills in managing a business, designing marketing strategies, and understanding basic financial management for business sustainability.

d. Product Involvement: Herbal Drinks, Snacks

The products produced by this pesantren include consumables such as herbal drinks and snacks, which also involve students in the production and distribution processes.

e. Student Involvement: Hands-On Experience in All Business Areas

Students are directly involved in all aspects of the business, including operational management, marketing, and financial planning, providing them with comprehensive entrepreneurial experience.

f. Partnership Involvement: Direct Management of Business

No external parties are involved in this model as the pesantren manages the business entirely within its environment.

g. Financial Management: Budgeting, Financial Planning

Students learn how to create budgets and plan finances for the sustainability of the businesses they manage.

h. Social Impact: Economic Independence, Leadership

The expected social impact is the development of economic independence for students through entrepreneurship, as well as the development of strong leadership skills.

a. Model Type: Maklon Partnership Model

Islamic Boarding School ‘C’ Surakarta adopts the Maklon Partnership Model, where the pesantren collaborates with external manufacturers to produce goods, with the pesantren focusing on marketing and distribution.

b. Key Focus: Partnership with External Manufacturers

The primary focus of this model is to establish partnerships with third-party manufacturers to produce goods, with the pesantren involved in marketing and distributing these products.

c. Skills Developed: Production, Branding, Risk Management

Students develop skills in product production, building a brand, and managing the risks associated with business partnerships.

d. Product Involvement: Personal Care Products (Soap, Shampoo)

The products produced in this model include personal care items such as soap and shampoo, which are manufactured in collaboration with external factories.

e. Student Involvement: Understanding Business Partnerships, Production

Students focus on understanding business partnerships, managing production processes, and handling aspects of branding and marketing.

f. Partnership Involvement: Profit-Sharing with External Partners

In this model, the pesantren engages in profit-sharing with external partners, benefiting both parties economically.

g. Financial Management: Profit-Sharing, Cost Management

Students learn how to manage profit-sharing agreements with external partners, as well as how to control production costs.

h. Social Impact: Ethical Business Practices, Product Branding

This model emphasizes the development of ethical business practices and the importance of creating a strong brand for the products.

a. Model Type: Contract-Based Partnership Model

Islamic Boarding School ‘B’ Sukoharjo adopts the Contract-Based Partnership Model, where the pesantren collaborates with business partners through short-term contracts, focusing on specific projects.

b. Key Focus: Short-Term, Project-Based Contracts

The main focus of this model is on establishing short-term partnerships for specific projects, providing more flexibility in business engagements.

c. Skills Developed: Procurement, Contract Management

Students learn skills in managing procurement processes and handling contract negotiations and management for specific business projects.

d. Product Involvement: Everyday Products (Food, Clothing)

The products involved in this model include everyday consumer goods such as food and clothing, which are produced as part of various short-term business projects.

e. Student Involvement: Contract Negotiation, Project Management

Students are taught how to negotiate contracts with business partners and manage projects from start to finish, providing them with specialized skills in business operations.

f. Partnership Involvement: Specific, Short-Term Contract-Based Engagements

Partnerships in this model are based on short-term contracts that focus on specific business projects, providing flexibility and a clear structure.

g. Financial Management: Transaction-Based Financial Agreements

The financial management system in this model is based on clear transactional agreements within each contract, including revenue-sharing and cost allocation.

h. Social Impact: Flexibility in Business Relationships

The social impact of this model is the creation of more flexible business relationships, allowing students to engage in a variety of business projects without being tied to long-term contracts.

Overall, Table 1 illustrates that the three pesantren implement different approaches to integrating entrepreneurship into their education. Islamic Boarding School ‘A’ Ngawi focuses on the In-House Business Model, where students gain direct experience in managing businesses. Islamic Boarding School ‘C’ Surakarta adopts the Maklon Partnership Model, focusing on partnerships with external manufacturers for production, while Islamic Boarding School ‘B’ Sukoharjo implements a Contract-Based Partnership Model, focusing on short-term, project-based contracts.

Table 2. Key Components of the In-House Business Model at Islamic Boarding School ‘A’ Ngawi outlines the various elements involved in the In-House Business Model at this particular pesantren (Islamic boarding school). The table describes the main components of the business operations within the pesantren, along with the impact these components have on the santri (students) involved in the model. Below is a detailed explanation of each component:

The In-House Business Model at Islamic Boarding School ‘A’ Ngawi provides hands-on experience for students in all aspects of running a business, including production, marketing, and sales. This means that students actively engage in the day-to-day operations of the business within the pesantren, managing each part of the business cycle [32].

This exposure allows students to gain practical experience in business management, teaching them how to run a business efficiently. They learn how to handle the operational challenges that come with producing and selling products, fostering critical thinking and problem-solving skills in real-world business contexts.

The products involved in this business model are herbal drinks and snacks. Students take part in the entire process, including production, quality control, and packaging. This component emphasizes the need to ensure that the products meet certain quality standards and are properly packaged for the market.

By participating in product development, students gain valuable experience in product quality management, consumer relations, and attention to detail. They learn how to ensure that the products are both high-quality and appealing to the target market, while also understanding the importance of customer satisfaction and feedback [33] .

Marketing in this model involves using social media and other marketing channels to promote the products. The focus is on building a brand, segmenting the market, and managing customer relations. Students are taught how to leverage different tools to advertise and promote their products effectively.

Through the marketing component, students learn how to build a brand identity, apply market segmentation strategies, and interact with customers. These experiences help students develop strong marketing skills, such as advertising, brand management, and consumer engagement, which are crucial in the modern business environment [34] .

Financial management is a key component of the In-House Business Model, which includes tasks such as budgeting, cost management, and financial planning. Students are actively involved in learning how to manage business finances effectively to ensure sustainability and profitability [35] .

Students develop financial literacy, understanding how to handle business costs, plan budgets, and track financial performance. This exposure teaches them the importance of financial sustainability and how effective financial management contributes to the long-term success of a business [36] .

In the In-House Business Model, students work in teams to manage various tasks and responsibilities. They are involved in decision-making processes, time management, and collaborative efforts to ensure that business operations run smoothly. Leadership skills are fostered as students take on roles that require them to manage teams or lead projects [37].

This component emphasizes the development of leadership skills and the ability to work in teams effectively. By working on group projects and managing business tasks together, students improve their teamwork, communication, and problem-solving skills, which are essential for success in both business and personal development [38].

The In-House Business Model at Islamic Boarding School ‘A’ Ngawi is designed to provide students with comprehensive, hands-on experience in running a business [39]. The key components—business operations, product development, marketing, financial management, and leadership—combine to help students develop a range of skills that are essential for becoming successful entrepreneurs. The model not only teaches students the technical skills required to manage a business but also fosters soft skills such as leadership, teamwork, and financial literacy, preparing them for success in the modern economy [40].

Table 3. Key Benefits of Contract-Based Partnership Model at Islamic Boarding School ‘B’ Sukoharjo outlines the advantages of implementing a Contract-Based Partnership Model in this pesantren (Islamic boarding school). The table highlights the various benefits of the model, along with how these benefits contribute to the santri's (students') development. Below is a detailed explanation of each benefit:

The Contract-Based Partnership Model at Islamic Boarding School 'B' Sukoharjo allows for short-term contracts, which provide the opportunity for varied partnerships. This model involves collaborating with external parties on a project-by-project basis, which reduces the long-term commitment typically seen in other business models. The flexibility allows the pesantren to experiment with different types of partners without being locked into a single, prolonged relationship.

For the Santri, this flexibility offers the chance to explore a wide range of business fields and industries. It exposes them to different types of ventures and challenges, giving them a broader perspective on business operations. This flexibility nurtures their ability to adapt and innovate in diverse business contexts, enhancing their entrepreneurial skills and versatility.

The Contract-Based Partnership Model is cost-efficient because it does not require long-term financial commitments. The pesantren is not bound by fixed, long-term expenses associated with maintaining ongoing business operations. Instead, costs are incurred on a project basis, allowing for better resource allocation and cost management.

The model teaches Santri how to balance resources and manage costs effectively, as they must plan for specific, short-term projects rather than long-term investments. This provides practical experience in financial management, including understanding costs, profit margins, and the importance of efficient resource utilization.

This model provides students with exposure to various business aspects, including procurement, contract negotiation, and legal considerations. Santri is involved in negotiating terms with business partners, drafting contracts, and ensuring the smooth execution of these agreements, gaining valuable insights into the legal side of business operations.

Through this exposure, students acquire practical legal knowledge and develop skills in contract negotiation, which are crucial for understanding business law. They also learn to assess business risks, helping them become better decision-makers and more informed entrepreneurs. This knowledge prepares them for potential future business ventures where such expertise is essential.

One of the key benefits of the Contract-Based Partnership Model is the ability to switch partners based on the outcomes of each project and the current needs of the pesantren. If a particular partnership does not yield the desired results or if there is a better opportunity elsewhere, the pesantren can easily terminate or adjust the partnership, allowing for increased business flexibility.

The ability to switch partners and adjust strategies as needed fosters a high level of adaptability in students. This teaches them how to make quick, effective decisions based on business performance and market conditions. As a result, they develop problem-solving and decision-making skills that are critical in fast-paced, everchanging business environments. This adaptability also makes them more resilient and prepared for the uncertainties of entrepreneurship.

The Contract-Based Partnership Model at Islamic Boarding School 'B' Sukoharjo offers significant advantages, particularly in terms of flexibility, cost efficiency, business learning, and adaptability. Through short-term contracts, students are exposed to a wide range of business experiences that allow them to learn practical skills in procurement, contract negotiation, and financial management. They also gain the ability to navigate and adapt to dynamic business environments. These benefits contribute to the development of well-rounded, agile entrepreneurs who are prepared to face the challenges of the modern economy.

Explanation of the Maklon Partnership Model Components

Islamic Boarding School 'C' Surakarta collaborates with external manufacturers to produce goods such as soap and shampoo. This model involves a shared responsibility between the pesantren and manufacturing partners. Santri is directly involved in business partnership management, understanding profit-sharing mechanisms, and learning about the dynamics of mutually beneficial partnerships.

Santri is involved in product development, including the design, quality control, and packaging of products. They learn how to ensure the products meet the specified quality standards. Santri gained practical experience in quality management and consumer relations, as they are responsible for ensuring the products are safe and meet customer expectations.

Products are marketed through various channels, including social media, to build brand identity and reach a larger audience. This helps create brand awareness among consumers. Santri learn about marketing strategies, the importance of market segmentation, and how to build and maintain customer relationships through effective branding.

In the maklon partnership, the pesantren and manufacturing partners share the profits. Santri learned about financial management, including profit-sharing agreements, cost structures, and the importance of financial planning within business partnerships. Santri develops skills in cost management, financial planning, and understanding the importance of transparency and preparation in a business relationship.

The model also involves managing risks related to manufacturing processes, external partners, and market demand fluctuations. Santri learns how to assess and mitigate these risks. Santri acquires skills in risk assessment, contingency planning, and how to address challenges and uncertainties in the business world, enhancing their problem-solving abilities.

The Maklon Partnership Model emphasizes ethical business practices, including fair trade and product safety standards, as well as ensuring workers' rights. Santri is taught to be entrepreneurs who not only care about profits but also consider the social impact and ethics in their business practices, promoting sustainable and responsible entrepreneurship.

The Maklon Partnership Model implemented at Islamic Boarding School 'C' Surakarta provides valuable practical experience for Santri in managing essential business aspects, from product development to risk management and marketing. Through this model, santri learn not only the necessary business techniques to become an entrepreneurs but also the importance of ethics and social responsibility in business.

This study underscores the significant role of pesantren in integrating religious and economic education to achieve Sustainable Development Goals (SDGs), particularly SDG 4 (quality education), SDG 8 (decent work and economic growth), and SDG 12 (responsible consumption and production). By examining the In-House Business Model, Maklon Partnership Model, and Contract-Based Partnership Model, the research highlights the effectiveness of entrepreneurship education in fostering economic empowerment, leadership, and ethical business practices among Santri. The findings reveal that entrepreneurial education in pesantren equips students with practical skills, including business management, financial literacy, and marketing expertise, while maintaining a strong foundation in Islamic values. The Maklon Partnership Model, in particular, stands out for its substantial impact on both institutional revenue and the professional readiness of students. These models demonstrate pesantren's adaptability to modern socio-economic demands, bridging the gap between traditional religious education and contemporary economic challenges. The study contributes to educational and entrepreneurship research by providing a replicable framework for integrating ethics and entrepreneurship into educational curricula, making pesantren a transformative force in fostering sustainable economic development. It also highlights the importance of addressing resource constraints, enhancing hands-on learning experiences, and refining curricula to align with both religious principles and global economic standards. These insights provide actionable recommendations for policymakers, educators, and practitioners to empower pesantren as dynamic hubs of education and economic growth. By nurturing ethical leaders and skilled entrepreneurs, pesantren can continue to contribute meaningfully to Indonesia's economic development and global efforts toward sustainable development.

This research was funded by the Directorate of Research, Technology, and Community Service (DRTPM), Ministry of Education, Culture, Research, and Technology (Kemdikbud), through the 2024 Master's Thesis Research (PTM) scheme under Contract Number 108/E5/PG.02.00.PL/2024 and 007 /LL6/PB/AL.04/2024. We express our gratitude for their support in facilitating this study. The authors also extend their gratitude to Lembaga Riset dan Inovasi Universitas Muhammadiyah Surakarta (LRI UMS) under contract number:196.81/A.3-III/LRI/VI/2024, and all informants whose support and contributions made this study possible.

All authors contributed equally to the main contributor to this paper, some are as chairman, member, financier, article translator, and final editor. All authors read and approved the final paper.

The author declares no conflict of interest.