Al-Kharaj: Journal of Islamic Economic and Business
Vol. 7 No. 4 (2025): All articles in this issue include authors from 3 countries of origin (Indonesi

The Economic Impact of Pesantren Haul Traditions on Local MSME Income: Evidence from Gentur Cianjur, Indonesia

Diansyah Permana (Unknown)
Luqman Al-Hakim Musthafa (Unknown)
Ceceng Saepulmilah (Unknown)
Mamat Rahmat (Unknown)
Alfa Rohmatin (Unknown)
Andewi Suhartini (Unknown)



Article Info

Publish Date
13 Oct 2025

Abstract

This study aims to analyze the effect of pesantren haul traditions on the income growth of local micro, small, and medium enterprises (MSMEs), with a case focus on Pesantren Gentur in Cianjur Regency, Indonesia. The haul tradition is viewed not only as a religious activity but also as a socio-economic phenomenon that has a significant impact on the surrounding community. A quantitative approach with an explanatory design was employed. Primary data were collected through surveys and interviews with 111 MSME actors around Pesantren Gentur and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS software. The results reveal that the pesantren haul tradition has a positive and significant effect on MSME income growth, with a path coefficient of β = 0.843, T-statistic = 27.710, and p < 0.001. The structural model explains 71% of the variance in MSME income growth with a substantial effect size (f² = 2.451) and strong predictive relevance (Q² = 0.593). These findings confirm that pesantren haul functions not only as a spiritual event but also as a local economic driver. The implications suggest that better management of haul traditions is essential to optimize economic benefits for MSMEs without diminishing their religious values. Local governments and pesantren managers are expected to synergize in supporting infrastructure, event governance, and MSME empowerment. Future studies are recommended to expand the scope to pesantren in other regions and to integrate variables such as MSME digitalization to enrich the analysis of religious tradition-based economic development.

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Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...