The Optimization of Financial Management Rooted in Local Wisdom to Improve the Quality of Islamic Educational Institutions in Madrasahs

Ridwan Idris; Caroline Teresa Linse; Lisa Nursita

doi:10.47766/idarah.v9i2.6107

Authors

Ridwan Idris Universitas Islam Negeri Alauddin Makassar https://orcid.org/0000-0003-4347-7194
Caroline Teresa Linse Queen's University Belfast, Northern Ireland https://orcid.org/0000-0002-5379-2641
Lisa Nursita Universitas Islam Negeri Alauddin Makassar https://orcid.org/0000-0001-5902-3053

DOI:

https://doi.org/10.47766/idarah.v9i2.6107

Keywords:

BOS Funding, Collaborative Governance, Digital Financial Transparency, E-RKAM, Financial Management, Islamic Educational Institutions, Local Wisdom, Sustainable Financial Practices

Abstract

Financial management plays a strategic role in ensuring the effectiveness and quality of Islamic educational institutions, especially private madrasahs that depend heavily on School Operational Assistance (BOS) funds. This study explores the financial management practices at MTs Ash-Shalihin Gowa, focusing on how strategies grounded in local wisdom and Islamic values help address funding limitations without compromising educational quality or sustainability. Using a qualitative case study approach, data were collected through in-depth interviews, participatory observation, and document analysis. Key informants included the head of the foundation, the principal, and the treasurer, who provided insights into the planning, budgeting, control, and evaluation processes. Thematic analysis was used, and findings were validated through triangulation. Results show that effective financial management in the madrasah is built on collaborative governance that incorporates local wisdom, such as gotong royong (mutual cooperation), musyawarah (deliberation), and religious values like amanah (trust) and barakah (spiritual benefit). Budgeting was based on needs and priorities, supported by inclusive decision-making involving all stakeholders. The use of the digital E-RKAM system improved transparency and accountability yet was applied in a way that respected the madrasah’s ethical and religious culture. Regular internal and external evaluations supported a reflective and adaptive financial cycle. These evaluations extended beyond regulatory compliance and included community feedback, reinforcing the institution’s legitimacy and responsiveness. Financial efficiency was thus viewed not merely as cost-saving but as a form of ethical stewardship (khalifah) over communal resources. This study contributes to the theory of Islamic educational financial management by showing how local wisdom can enhance digital governance. It offers a practical model for other madrasahs to replicate, emphasizing the importance of aligning religious values, digital tools, and cultural practices in improving educational quality sustainably.

References

Awaliya, T. P., & Utami, R. D. (2024). Strengthening the gotong royong character of elementary school students through cooperative learning. Inovasi Kurikulum, 21(3), 1763-1780. https://ejournal.upi.edu/index.php/JIK/article/view/73624

Braun, V., & Clarke, V. (2012). Thematic analysis. In H. Cooper, P. M. Camic, D. L. Long, A. T. Panter, D. Rindskopf, & K. J. Sher (Eds.), APA handbook of research methods in psychology, Vol. 2. Research designs: Quantitative, qualitative, neuropsychological, and biological (pp. 57– 71). American Psychological Association. https://doi.org/10.1037/13620-004

Chankseliani, M., & McCowan, T. (2021). Higher education and the sustainable development goals. Higher education, 81(1), 1-8. https://doi.org/10.1007/s10734-020-00652-w

Cloth, A. H., Trach, J., & Cannon, J. E. (2025). Needs-Based Mentoring in Schools: A Holistic Approach for Working with Youth at-Risk. Child & Youth Services, 46(1), 46–69. https://doi.org/10.1080/0145935X.2023.2261370

Cumming, D., & Dai, N. (2011). Fund size, limited attention and valuation of venture capital backed firms. Journal of Empirical Finance, 18(1), 2-15. https://doi.org/10.1016/j.jempfin.2010.09.002

da Silva, T. M. H. R. (2025). Navigating Healthcare Complexity: Integrating Business Fundamentals Into Nursing Leadership. In Resiliency Strategies for Long-Term Business Success (pp. 145-168). IGI Global. https://www.igi-global.com/chapter/navigating-healthcare-complexity/356726

Darma, H. (2024, November 30). Wawancara langsung. Bendahara MTs Ash-Shalihin.

de Villiers, C., Dimes, R., & Molinari, M. (2025). Determinants, mechanisms and consequences of UN SDGs reporting by universities: conceptual framework and avenues for future research. Journal of Public Budgeting, Accounting & Financial Management, 37(2), 329-349. https://www.emerald.com/insight/content/doi/10.1108/jpbafm-07-2023-0125/full/html

Fatah, N. (2012). Standar pembiayaan pendidikan. Bandung: PT Remaja Rosdakarya.

Fauziyyah, N. A., Mulyani, H., & Purnamasari, I. (2018). Analisis efektivitas dana bantuan operasional sekolah (BOS) di Indonesia atas tanggung jawab pemerintah. Jurnal Pendidikan Akuntansi dan Keuangan, 5(1), 21–28. https://ejournal.upi.edu/index.php/jpak/article/view/15828

Haddade, H., Nur, A., Achruh, A., Rasyid, M. N. A., & Ibrahim, A. (2024). Madrasah management strategies through Madrasah Reform program: An evidence from Indonesia. International Journal of Educational Management, 38(5), 1289-1304. https://www.emerald.com/insight/content/doi/10.1108/ijem-05-2023-0236/full/html

Handoko, C., & Tukiran. (2022). Manajemen kepala sekolah/madrasah dalam sistem pengelolaan keuangan. Jurnal An-Nur: Kajian Pendidikan dan Ilmu Keislaman, 8(1), 1–14. http://journal.an-nur.ac.id/index.php/annur/article/view/164

Hikmawati, S. I., Khaudli, M. I., Aimah, S., & Fakhrudin, F. M. (2024). Building a Culture of Quality in Madrasas: The Strategic Role of School Committees. Jurnal At-Tarbiyat: Jurnal Pendidikan Islam, 7(2). http://psasir.upm.edu.my/id/eprint/115396/1/115396.pdf

Hoque, K. E. (2025). Personal Mastery of an Educational Manager. In The Changing Roles of Educational Managers: Essential Skills in an Era of Rapid Change (pp. 225-236). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-96-1086-0_12

Hunziker, S., & Blankenagel, M. (2024). Multiple case research design. In Research design in business and management: A practical guide for students and researchers (pp. 171-186). Wiesbaden: Springer Fachmedien Wiesbaden. https://doi.org/10.1007/978-3-658-42739-9_9

Irmamutiah. (2024, November 30). Wawancara langsung. Kepala Madrasah MTs Ash-Shalihin.

Juhro, S. M., Syarifuddin, F., & Sakti, A. (2025a). Islamic Economic and Financial System. In Inclusive Welfare: On the Role of Islamic Social-Public Finance and Monetary Economics(pp. 27-82). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-96-0051-9_2

Juhro, S. M., Syarifuddin, F., & Sakti, A. (2025b). Islamic Social-Public Finance Practices in Various Countries. In Inclusive Welfare: On the Role of Islamic Social-Public Finance and Monetary Economics (pp. 219-250). Singapore: Springer Nature Singapore. https://doi.org/10.1007/978-981-96-0051-9_7

Kafrawy, M. (2024, November 30). Wawancara langsung. Ketua Yayasan MTs Ash-Shalihin.

Karim, A., Fathurohman, O., Sulaiman, S., Marliani, L., Muhammadun, M., & Firmansyah, B. (2025). How do principals act as leaders and managers in boarding and public schools in Indonesia? Cogent Education, 12(1). https://doi.org/10.1080/2331186X.2024.2445354

Kuah, K.E., & Tan, J.E.T. (Eds.). (2016). Educating Marginalized Communities in East and Southeast Asia: State, civil society and NGO partnerships (1st ed.). Routledge. https://doi.org/10.4324/9781315561998

Lee, Y. C. (2025). Changes in learning outcomes of students participating in Problem-Based Learning for the first time: A case study of a financial management course. The Asia-Pacific Education Researcher, 34(1), 511-530. https://doi.org/10.1007/s40299-024-00873-y

Leheza, Y., Kolomoiets, Y., Chalyk, V., Kovalchuk, Y., & Sakhno, A. (2024). Foreign experience of financial-legal and administrative-legal regulation of the activities of public administration bodies. Revista do Curso de Direito do UNIFOR, 15(1), 51-60. https://doi.org/10.24862/rcdu.v15i1.1832

Muhadi, A., Syahputra, D., Amalia, E., & DS, T. T. (2023). The Management of Transformative Islamic Cultural Education in Elementary Schools from its Conception to Actualization Study. AT-TADIB, 7(1). https://doi.org/10.32832/at-tadib.v7i1.19527

Na’im, Z., Yulistiono, A., Arifudin, O., Irwanto, E., Latifah, E., & Indra. (2021). Manajemen pendidikan Islam. Bandung: Widina Bhakti Persada.

Nisfiyanti, Y. (2010). Tradisi Gotong-royong di Desa Juntikebon Kecamatan Juntinyuat, Kabupaten Indramayu. Patanjala, 2(1), 95-110. https://web.archive.org/web/20180422191535id_/http://ejurnalpatanjala.kemdikbud.go.id/patanjala/index.php/patanjala/article/viewFile/209/159

Nor, M. I., & Raheem, M. M. (2025). A multivariate examination of critical success factors for education finance in Somalia. Cogent Social Sciences, 11(1). https://doi.org/10.1080/23311886.2025.2455232

Nurhayati, Y., & Deonardo, D. E. (2021). Evaluasi pengelolaan dana bantuan operasional sekolah (BOS) SD Negeri Harapan Makmur Kabupaten Musi Rawas Kecamatan Muara Lakitan. Jurnal Akuntansi STIE (JAS), 7(1), 21–30. http://jurnal.univbinainsan.ac.id/index.php/jas/article/view/1392

Octavia, E. D. N., & Susanti, E. (2024). Pengawasan pengelolaan dana bantuan operasional sekolah (BOS) oleh Inspektorat Kota Bandung. Jurnal Administrasi Negara, 16(1), 18–27. https://jurnal.unpad.ac.id/jane/article/view/49953

Robinson, R. S. (2024). Purposive sampling. In Encyclopedia of quality of life and well-being research (pp. 5645-5647). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-17299-1_2337

Saunders, M. N., & Darabi, F. (2024). Using multi-and mixed methods research designs. In Field Guide to Researching Employment and Industrial Relations (pp. 71-87). Edward Elgar Publishing. https://doi.org/10.4337/9781035313891.00018

Septiani, S., Purnamasari, Y. T. P., & Hariyono, H. (2025, April). Business ethics in Islamic economics based on the Qur’anic perspective. In Muhajirin International Conference (Vol. 1, No. 1). https://ejournal.taqaddum.co.id/index.php/mic/article/view/17

Sukirman, & Kabilan, M. K. (2023). Indonesian researchers’ scholarly publishing: an activity theory perspective. Higher Education Research & Development, 42(8), 2030–2047. https://doi.org/10.1080/07294360.2023.2209522

Sukriono, D., Sudirman, S., Rapita, D. D., Al Atok, A. R., & Bramantya, A. (2025). Local wisdom as legal dispute settlement: how Indonesia’s communities acknowledge Alternative Dispute Resolution?. Legality: Jurnal Ilmiah Hukum, 33(1), 261-285. https://doi.org/10.22219/ljih.v33i1.39958

Syamsuddin. (2017). Penerapan fungsi-fungsi manajemen dalam meningkatkan mutu pendidikan. Idaarah: Jurnal Manajemen Pendidikan, 1(1), 60–73. https://www.neliti.com/publications/338000/penerapan-fungsi-fungsi-manajemen-dalam-meningkatkan-mutu-pendidikan

Taufiq, M., Hidayat, R., & Sauki, M. (2024). The Dynamic of Actors' Relation to the Susceptible Condition of the Village Participatory Democracy. Journal of Governance and Local Politics (JGLP), 6(2), 128-140. https://doi.org/10.47650/jglp.v6i2.1387

Vanatta, S. H., Hotori, E., & Yago, K. (2025). Introduction to special issue on human capital in financial regulation and supervision. Management & Organizational History, 20(1), 1–10. https://doi.org/10.1080/17449359.2024.2446244

Vettriselvan, R., Rajesh, D., Swadhi, R., Velmurugan, P. R., & Arunkumar, S. (2025). Enhancing Efficiency and Accountability: Innovative Approaches to Public Financial Management in Higher Education. In Challenges of Public Administration Management for Higher Education (pp. 81-112). IGI Global. https://www.igi-global.com/chapter/enhancing-efficiency-and-accountability/358140

Wijoyanto, D., Adipitoyo, S., & Pairin, U. (2025, February). Phonetical Relations of Reference-Inference in Wangsalan Sindhenan. In Proceeding of International Joint Conference on UNESA (Vol. 2, No. 2). https://proceeding.unesa.ac.id/index.php/pijcu/article/view/4455

Younas, A., & Inayat, S. (2025). Choosing an analytical approach in case study research. Creative Nursing, 31(1), 90-92. https://doi.org/10.1177/10784535241306773