The ‘Merdeka Belajar Kampus Merdeka’ (MBKM) policy represents a significant breakthrough in Indonesia’s higher education system, aimed at improving the quality and relevance of graduates. However, its implementation within the Islamic Religious Education Study Programmes (PAI Programmes) at various higher education institutions across Indonesia faces a series of complex challenges. This study aims to identify, analyse in depth, and discuss these various challenges. Using a literature review of national and international journals, as well as an analysis of relevant policies, this study examines the challenges in designing an Islamic Education curriculum that is adaptable to the MBKM, including the alignment of Graduate Learning Outcomes (GLOs) and the integration of distinctive features of Islamic Education such as religious moderation and noble character. Furthermore, this study analyses the readiness of resources (lecturers, students, facilities and infrastructure, funding), issues relating to governance and institutional policy, obstacles in establishing partnerships, and challenges in developing appropriate assessment and evaluation systems. Case studies from various Islamic Religious Higher Education Institutions (PTKI) and General Higher Education Institutions (PTU) were used to illustrate the variety of issues and efforts to resolve them. The main findings indicate that the challenges in implementing MBKM within the Islamic Education (PAI) study programme are multidimensional, encompassing conceptual, structural, operational and cultural aspects. Comprehensive strategic recommendations are required for stakeholders
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