Educational autonomy is one of the consequences of the decentralisation policy in Indonesia. The implementation of autonomy provides space for educational institutions, including Islamic educational institutions, to develop curricula, management, and learning methods according to the needs and characteristics of learners. This article discusses the opportunities and challenges of educational autonomy for Islamic educational institutions. The method used is a literature review by examining various relevant sources. The results show that educational autonomy offers opportunities for strengthening Islamic identity, managerial independence, learning innovation, and knowledge integration. However, there are also challenges such as limited human resources, unequal facilities, the risk of radicalism, and weak quality standards. Therefore, synergy between the government, society, and Islamic educational institutions is needed so that educational autonomy can run as intended and produce Muslim generations with strong character and global competitiveness
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