Strategic Efforts of Islamic Boarding Schools in Developing the Value Chain of the Halal Ecosystem in Dumai City

Abstract

This research is motivated by the rapid growth of the global halal industry, which continues to expand,
including in Indonesia. The Governor of Riau has designated Riau as one of the national halal
destinations due to its strategic location near Malay countries. The development of the halal industry
in Riau is supported by government policies that implement Islamic standards from upstream to
downstream sectors. Islamic boarding schools (pesantren) as socio-economic entities play an important
role in the value chain of the halal ecosystem. Dumai City, known as the “City of Dreams,” has been
declared a halal industrial zone. However, the city faces five major challenges: drug abuse, promiscuity,
HIV/AIDS, LGBT issues, and the spread of heretical teachings. These challenges contradict the vision
of establishing a halal city. This study aims to analyze the efforts and roles of pesantren business units
as drivers of the halal ecosystem capable of creating social change and influencing community
behavior. Using a descriptive qualitative method involving three pesantren in Dumai City, the findings
indicate that pesantren can serve as exemplary institutions in applying Islamic values to economic
practices through the principles of honesty, justice, balance, trustworthiness, and the avoidance of
riba(usury). Interviews also revealed that pesantren administrators instill four main principles in
managing economic activities—honesty, trustworthiness (amanah), public benefit (maslahah), and
freedom from riba. In conclusion, pesantren can serve as role models for the community in integrating
Islamic values into economic activities and implementing sharia principles in everyday life.