Gontor Economic Protectionism and Social Changes

Syahruddin, M.Sc.FinFaculty Member, Faculty of Economics and Management Sciences

University of Darussalam (UNIDA) Gontor, Indonesia

ISEFID Friday DiscussionGombak, 17 January 2017

Presentation Outlines:

1. Protectionism and its types

2. Pesantren at a glance

3. Gontor as the role model of modern pondok

4. Gontor economic protectionism

5. Multiplier effects of the policy on society

Background of Study

Disoriented

Misbehavior

Lack of system

Great vision

Leadership

Systematic

Protectionism and Its Types

• There is no consensus as to what defines the term. However, all surveyed institutionshighlight two core elements: (1) the discrimination of foreign economic operators,and (2) trade-restrictiveness. (Kommerskollegium, 2016)

• Trade protectionism are measures that countries use to limit unfair competitionfrom foreign industries. It is a defensive measure that is politically motivated.(Amadeo, 2017)

• Its types are (1) Tariffs (2) Quotas (3) Embargoes (4) Subsidies (5) Administrativebarriers. (Pettinger, 2013)

Pesantren at a glance

• In Indonesia, pesantren roles as an Islamic educational institution that is

managing by both traditional and modern system.

• Values and religious norms run at its roles an important part in the

development of inside as well as outside communities.

• It is an independent community, they live as a family under the

leadership of Kiai (Islamic cleric) assisted by ustadz (religious teachers)

who living together among the santri (students).

• Pesantren is also supported by natural resources and also “human

potential to develop” including empowerment of leadership skill.

Gontor as the modern pesantren

• Gontor as Islamic educational institution which established on 1926 is modernprivate boarding school that funded by waqf (endowment) system.

• It developed by values and system which designed by its founding fathers.

• The five spirits of Gontor which are sincerity, simplicity self-reliance, Islamicbrotherhood and freedom always colored all living environment.

• This modern pesantren is designed to achieve four directions which are society,simple-life, independent from any practical form of political party and thegenuine one is performing worship in seeking knowledge.

Gontor development• Since 1926 educating people towards better life.

• Established by 3 sibling brothers namely Trimurti.

• Started with 40 students and

• Given approximately 2.5ha philanthropy land of founding fathers in 1958.

• Next to its century, it has 23.506 students and teachers which spread in 20campuses and owned over 1,000 hectare productive land around the country.

• It has also pesantren higher education, the University of Darussalam (UNIDA)Gontor with 20 departments of degree and 3 programs for master and doctoral.

Gontor Protectionism

• Few of pesantrens; both traditional and modern one that think in developingsociety inside as well as outside.

• It empowered by values and system which implanted and designed by thefounding fathers to develop and sustain its financial system especially.

• The policy is designed to educate people as well as elaborated more to preserveany potential income of organization.

• However, Gontor still gives a room for society outside to take strictly a part in theregulated system inside.

Leader (Kyai)

Student

Senior

Teacher

Family

Society

ED

UC

AT

ION

Designed V a l u e s

Sincerity

Simplicity

Self-sufficient

Islamic brotherhood

Freedom

Integrated S y s t e m

Centralization of Financial Policy• Structural advisory

• Discipline administration

Integration of Education and Economy• Educating supervisory

• Independency

Entrepreneurship • Business unit

• Skill empowerment

Protectionism T y p e

Type

Quota

Embargo

Subsidies

Adm. barrier

Multiplier effects on society• Impact of the policy on nearby social changes

• Economic livelihood

• Relationship treatment; direct and indirect

• The relationship between the policy and society revenues

• Fixed direct

• Floating direct

• Indirect

Conclusion

• Gontor economy protectionism means that every goods and services that neededby who live inside the boarding school should be fulfilled by the institution.

• The modern pesantren still gives a room for people around to start business thatdesigned to support the student needs which do not provide yet inside thecampus.

• Trader around is classified into two categories, which is direct and indirectrelationship with Gontor. They are divided into two; supplier of products andservices.

• This designed rules and regulations are aiming at educating people in Islamicbusiness and management.

Thank and see you soon in Gontor

www.unida.gontor.ac.id