Prosociality Maqasid al-shariah and Local Wisdom in Islamic Economic Practices among Pesantren Communities in Indonesia and Southern Thailand

Abstract

This study explores the intricate interplay between Maqasid al-shariah (the objectives of Islamic law) and local wisdom in shaping Islamic economic practices within pesantren (Islamic boarding schools) communities in Indonesia and pondok (their counterparts) communities in Southern Thailand. While conventional Islamic economic discourse often emphasizes formal financial structures, this research delves into the grassroots initiatives that integrate ethical Islamic principles with indigenous cultural values. Utilizing an ethnographic and comparative case study approach, the study examines how these socio-religious institutions operationalize Maqasid-based values, such as maslahah (public welfare) and distributive justice, through pragmatic, context-sensitive economic activities. Findings reveal that pesantren in Indonesia engage in maqasid-oriented entrepreneurship, leveraging communal values like gotong royong for sustainable development. Conversely, pondok communities in Southern Thailand demonstrate economic resilience through small-scale halal production and informal credit networks, often as a form of socio-religious identity affirmation. The research highlights that local wisdom serves as a crucial social capital, fostering trust and collective action essential for these community-driven economic models. This study advocates for a more inclusive understanding of Islamic economics that recognizes the vital role of culturally embedded, bottom-up initiatives and offers policy implications for supporting faith-based economic empowerment in Southeast Asia.