Pesantren are the oldest Islamic educational institutions in Indonesia and play a strategic role in education, da'wah (Islamic propagation), and community empowerment. The development of Islamic education policies has strengthened the position of pesantren through the enactment of Law Number 18 of 2019 on Pesantren and its implementing regulations. This study aims to analyze Islamic education policies related to pesantren institutions, examine their implications for institutional development, and identify challenges in their implementation. The study employs a library research method with a descriptive-analytical approach. Data were collected from laws and regulations, books, scholarly journals, and official documents issued by the Ministry of Religious Affairs. The findings indicate that government policies have provided recognition, affirmation, and facilitation for pesantren, thereby strengthening their legal legitimacy, institutional governance, access to funding, and quality development. However, policy implementation continues to face several challenges, including bureaucratization, limited human resources, disparities in facilities among pesantren, and the potential reduction of institutional autonomy due to the application of uniform administrative standards. Therefore, adaptive and contextual policies are needed to ensure that the strengthening of pesantren institutions remains aligned with their characteristics, traditions, and independence as community-based Islamic educational institutions.
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