63 IJIBEC Economic Recovery Program Post-Covid-19 At Modern Islamic Boarding Schools (Pesantren) Sih Darmi Astuti1*, Herry Subagyo2, Risanda A. Budiantoro3 , Mubashir Ahmad4 1 Human resources Management, Faculty of Economics and Business, Universitas Dian Nuswantoro, Jl. Nakula I number 5-11 Semarang, 50131, astuti_sda@dsn.dinus.ac.id 2 Finance Management, Faculty of Economics and Business, Universitas Dian Nuswantoro, Jl. Nakula I number 5-11 Semarang, 50131, herry.subagyo@dsn.dinus.ac.id 3 Islamic Finance, Accounting Department, Faculty of Economics, Universitas Negeri Semarang, Jl. Kampus Timur, Sekaran, Gunungpati, Semarang,50229. risanda.abe@mail.unnes.ac.id 4 Bussiness Administration Department, Northern University Pakistan, Wattar Walai Ziarat Kaka Sahib Road, Nowshera, Pakistan mubashir@northern.edu.pk Abstract The thing which needs to be considered in a pandemic is the economic sector recovery mechanism as a result of the Pembatasan Sosial Skala Besar policy, this research aims to build and develop an economic recovery program which is ideal for micro-businesses adopt especially pesantren in Semarang City, namely Smart Tren Program. This research uses an exploratory qualitative approach. Data sources were obtained through observation, interviews and literature studies. The implementation of the Smart Tren Program is expected to: (1) increase the trust of existing customers and gain new potential customers; (2) renew the application of sophisticated technology in marketing; (3) expand the market share of its superior products; (4) increasing the competitiveness of Islamic boarding schools in empowering the economy of the people. The success of this program will be determined by the seriousness of each stakeholder in carrying out this program in five stages, including: (1) data collection on the membership of Islamic boarding schools in Semarang City; (2) registering an account on the Smart Trends Program as a buyer and a seller; (3) the product curation to ensuring that the products to be displayed in the Smart Trends Program have good quality and clear and complete product information; (4) Searching, ordering, paying, and shipping products from the required pesantren business unit. International Journal of Islamic Business and Economics Available at http://e-journal.iainpekalongan.ac.id/index.php/IJIBEC ISSN 2599-3216 E-ISSN 2615-420X Vol 6 No 1 2022 Keywords: People's Economy; Adoption of Digital marketing; Modern Islamic Boarding School DOI: 10.28918/ijibec.v6i1.3692 JEL: O14, Z12 Article Info Article History: Received : 21 April 2021 Accepted : 23 March 2022 Published : 1 June 2022 mailto:astuti_sda@dsn.dinus.ac.id mailto:herry.subagyo@dsn.dinus.ac.id mailto:risanda.abe@mail.unnes.ac.id mailto:mubashir@northern.edu.pk 64 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 1. Introduction The spread of virus due to Covid-19 pandemic which has been taking place since December 2019 has continued to expand, including in Indonesia. Things that need to be considered when a pandemic case occurs is an effective recovery mechanism, especially in economic sector which was shaken by the Large-Scale Social Restriction movement or PSBB (Pembatasan Sosial Berskala Besar) which was implemented in several areas including in Central Java Province. Central Java Province was ranked third after DKI Jakarta Province and East Java inactive cases reaching up to 60.514 cases or 10,5 per cent. This PSBB policy is an anticipatory step from the government to break the chain of the spread of Covid-19 in Indonesia, but the consequences will directly affect macroeconomics performance (Pakpahan, 2020). In this case, pesantren empowerment sector is the focus of attention of the government considering the potential possessed by pesantren in socio-economic sector, especially in empowering people (umat) (Fatoki & Asah, 2011). The large number of pesantren and santri shows potential of the pesantren to play its role (Ryandono, 2020; Zaki et al., 2019). This is confirmed by data from the Kementerian Agama Republik Indonesia (2020), the number of Islamic boarding schools in Indonesia has reached 28.961 boarding schools, with a total of 2.645.344 santri, where the number of students who live at boarding schools is 1.442.283 santri and who do not live at boarding schools as 1.203.061 santri. In terms of the distribution per province, Central Java Province is in fourth place under West Java; Banten and East Java with the highest number of Islamic boarding schools as 3.787 Islamic boarding schools with 298.874 students, while Semarang City is in sixth position in Central Java Province with 183 Islamic boarding schools and 8.977 students (see Figure 1). Figure 1. Distribution of Islamic Boarding Schools in Indonesia, 2020 Source: (Kementerian Agama Republik Indonesia, 2020) In practice, even in normal conditions, the business units carried out by Islamic boarding schools often experience various obstacles and difficulties in running their businesses, especially in post-pandemic conditions. So, the impact of Covid-19 pandemic in this pesantren business unit has potential to reduce purchasing power, a quiet market segment, and other constraints in the production and distribution process (Shafi, Liu & Ren, 2020; Mawani, et al., 2021). Furthermore, various adjustments are required by this business unit in running its business in order to survive macroeconomic uncertainties, prevent International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 65 bankruptcy and increase its competitiveness (Hardilawati, 2020). One of them is an alternative solution that can be utilized by pesantren business units by implementing a technology-based marketing system to maximize existing marketing strategies. Semarang City Government can initiate the adoption of a digital marketing program with the term Smart Tren, in order to increase digital marketing on superior products produced by Islamic boarding schools’ business units in Semarang City. Mapping the benefits and costs of both social and economic in the process of adopting digitalization in managing business units is a strategic step for strengthening the community-based economy especially for pesantren business units (see Table 1). Table 1. Mapping the Benefits and Costs of Digital Adoption in Pesantren Business Units Benefits Cost Economy Social Economy Social Development of the entrepreneurial skills of students Maintain the trust of the community and partners in the ability of the pesantren business unit Increase the cost of education due to the addition of a digital entrepreneurship curriculum Generating social jealousy for other pesantren business units that have not adopted digital Operational support for pesantren business units Increasing the independence of students to prepare for the future Increasing the burden of digitalization investment Reducing the authority or spirit of pesantren as an Islamic religion- based education Increased purchasing power Improve literacy understanding in digitization Increase the brand image of the pesantren business unit Source: (Effendi et al., 2020; Hasanatina et al., 2020) Starting from existing problems background, it encourages the exploration of Smart Tren Program as a digital marketing process that will be adopted by business units as an effort to survive post Covid-19 pandemic. So hopefully, it can be a foundation in a competitive, superior and creative business sustainability. The application of digital marketing at this strategic level as a complement to traditional marketing and business strategies is becoming more comprehensive (Qashou & Saleh, 2018). Necessary things to be prepared is program integration with government in preparing this program in an ideal way, considering technology is also one of the biggest obstacles for business people (Budiantoro et al., 2018) . So the purpose of this study is to develop and compile an ideal Smart Tren Program in digital marketing programs adoption in business units at Semarang City. In accordance with problems, the objectives of this study are: 1) Obtain problems from people in micro and small business sector in Semarang City; 2) Obtain modeling concepts from the ideal Smart Tren adoption; 3) Gain benefits that pesantren business unit gets when it adopts this Smart Tren Program. This study has two benefits, academic benefits and practical benefits. First, this study can contribute to development and understanding management knowledge, especially 66 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 in empowerment management, henceforth it can be developed into economics knowledge related to the linkage program planned by Semarang City Government in pesantren economic empowerment through pesantren business units so that in the future it will be able to be competitive, independent, prosperous, and cultured based on the values of religiosity. Through this proposal, it is hoped that it will be able to provide a comprehensive overview so that the output will get an optimal model and a description of the empowerment concept scope that will be carried out by Semarang City Government to the pesantren business unit. The second, this study are important considerations and input for Semarang City Government, especially Badan Perencanaan Pembangunan Daerah Kota Semarang, Bidang Penelitian, dan Pengembangan Ekonomi (Semarang City Regional Development Planning Agency, Research and Economic Development Sector), to be able to take various implementation steps in making policies and making regulations that can become foundation for sustainable development management of pesantren business units through integrated economic empowerment of pesantren with multiplier effects that can improve the economy of the people, so people become more prosperous, independent and cultured based on religious values. 2. Method Research Approach This study used a explorative qualitative approach method with basic consideration of being able to comprehensively identify the adoption process related to digital marketing for pesantren business units in Semarang city as a form of economic recovery during Covid- 19 pandemic. The type of data used is a combination of primary and secondary data that will support this study in formulating Smart Tren Program modeling as digital marketing adoption as well as conducting business development through various kinds of training in pesantren business unit in Semarang City. Sources of data in this case study, data obtained through observation (field research), interviews and other literature studies. Research Flow and Conceptual Framework In the research flow scheme, it starts from pesantren business unit potential in Semarang city. So that Semarang City Government provides strategic solutions in Smart Tren Program model as a form of digital marketing adoption for pesantren business unit actors in Semarang City who are potentially affected by Covid-19 pandemic (see Picture 1). International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 67 Picture 1. Conceptual Framework for Smart Tren Program in the Adoption of Digital Marketing Programs to Pesantren Business Units Actors Source: (Santoso et al., 2020), modified The modeling of Smart Tren Program as digital marketing adoption was initiated by Semarang City Government so that hopefully the pesantren business unit can spearhead the operational management and development of pesantren infrastructure independently. In this case, objects selection from pesantren is due to the vision and intention of running a strong business, which is supported by human resources, land, raw materials, and broad market potential. Through the adoption of this program, hopefully that the marketing system and digital-based business strategy run by business unit actors in Semarang city will be effective. So that in the end there was a strengthening of the business of pesantren in fighting upon Covid-19 pandemic which made it easier to access data and expand market reach. The hope is that it can build pesantren independence through economic empowerment by selecting commodities that are salable in the market, providing training, mentoring and digital marketing. Research focus The focus of this research is the adoption of digital marketing in pesantren business units in the city of Semarang which is carried out by the Semarang City Government through the Semarang City Regional Development Planning Agency, Research and Economic Development Sector in collaboration with several other agencies involved in the empowerment of pesantren. This program is part of a solution initiated by the Semarang City Government in empowering pesantren business units to survive the Covid-19 pandemic and keep up with technological developments to support the creation of technology-based smart cities. This is a factor of renewal and can serve as an example for other city or district governments in Central Java Province and in other provinces in empowering the pesantren economy. So it is hoped that the pesantren's business unit will be able to be competitive, independent, prosperous, cultured and based on religious values. 68 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 Analysis Tools The analytical tool used is a business canvas model that is considered appropriate in designing business models, including compiling a sharia-based financing model initiated by the Semarang City Government for pesantren business units who have the potential to create superior products (Tjitradi, 2015). This is confirmed by Osterwalder & Pigneur (2010), where the business canvas model will show a logical picture of a business model and how an agency creates, delivers and captures a value. The way of thinking from this canvas is by dividing the business model into nine main components, where the components are on the right side (showing creativity) and on the left side (showing logic), among others (see Table 2): (1) customer segment; (2) customer relationship; (3) customer channel; (4) revenue structure; (5) value proposition; (6) key activities; (7) key resource; (8) cost structure, and (9) key partners. Table 2. The Nine Main Components of the Business Model Canvas No Component Definition 1 Customer segments This component plays a role in determining the segmentation of the target customers who want to be served or ignored from the developed model. Customer segmentation can also be determined from behavior, profession, age, gender, income, and geographic location. Because essentially without customers, the organization will not be able to survive long. 2 Value Proposition Components that can predict the needs of customers that have been previously identified through the customer segment. The thing that needs to be underlined is the value or value that is the core of business activities that can solve and meet customer needs (this is what determines why business products deserve to be chosen). 3 Channel The component describes how to reach its customers using all communication channels, distribution from sales. So the main thing is how the organization communicates with its customers and conveys its value proposition well. 4 Customer Relationship Components describe the relationship between the organization and its customers either personally, benefiting a particular organization or community, or automatically or "self-service." Conducting relationship building with customers helps get new customers or retain old customers. 5 Revenue Streams Components that represent the path of receipt of money received from each customer segment. So that the inflow of funds will show how the organization earns income, with the aim that the organization can survive in running its business unit. 6 Key resources Components indicate the primary resources related to the most critical assets in determining the successful operation of the business model. This enables organizations to create and exceed value propositions, streamline revenue streams and maintain customer segments. 7 Key Activities Components that describe the organization's main activities to support the success of the business model, especially sending value propositions to customers. Each organization has different main activities depending on the type of business model. 8 Key partners The component that determines the key to the partnership is to explain the network of suppliers and partners in the business model. The importance of making critical partnerships in order to optimize the business model, reduce risk and obtain optimal resources compared to its competitors. 9 Cost structure The component that contains a cost structure that can describe all costs incurred by the company in carrying out its business model operations. International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 69 Sumber: Osterwalder dan Pigneur (2009); Dewobroto (2012); Wardhanie dan Kumalawati (2018); Herawati, Lindriati, dan Suryaningrat, (2019) 3. Result and Discussion The multiplier effect caused by the Covid-19 pandemic has affected the development of Islamic economy in Indonesia, such as the halal product industry, the Islamic financial industry and the expansion of sharia businesses through pesantren business unit (Prusty, Anubha, & Gupta, 2021). Therefore, the management of the pesantren business unit is highly dependent on the existence of santri or voluntary social donations. The various operational needs of the pesantren business unit require information technology support in order to be more effective and efficient in carrying out every transaction. In order to respond to this, an appropriate strategy is needed in facing the era of digitalization by the pesantren business unit, such as (1) commitment to increasing investment in the development of digital skills carried out by the pesantren business unit; (2) it is necessary to implement a prototype of new technology, so learn by doing is needed; (3) explore forms of collaboration with industry, academia, and the public in the adoption of digital marketing programs for pesantren business units actors; (4) compiling an educational curriculum that begins to be included in human digital skills. The dominant Muslim population in Indonesia is 209,12 million or 87 percent of the total population, which is one of the opportunities that can be used to make the adoption of digitalization successful in pesantren business units (BPS, 2020). However, there are still various kinds of obstacles that must be faced by pesantren business units, such as (Fajri, 2020): (1) Mindset to develop of the pesantren business unit has not been optimal, although the entrepreneurial movement is increasing, this is still the last option; (2) the cultivation of expertise in doing digital-based entrepreneurship is still weak; and (3) Lack of ability to do business, including the ability to make decisions that can support the economy of the people. Looking from the perspective of the problems faced by pesantren business units in Semarang city, so they can be classified into internal and external problems (see Table 3). The internal problems that exist in this pesantren business unit stem from limitations in terms of the pesantren's own business unit, which is closely related to existing capabilities, competencies and resources (information and knowledge), so that it has an impact on the process of compiling and implementing its business strategy. Meanwhile, external problems arise from various problems faced from outside the business unit that have the potential to sustain the business. Table 3. Internal and External Problems of Pesantren Business Units Internal Aspects External Aspects Weakness in doing business innovation Threats from similar imported products Diseconomies of scale which are influenced by limited production capacity so that the selling price is relatively high The low contribution of external parties in supporting the development of the pesantren business unit Limited capital owned Difficulty in expanding the market Limited availability of raw materials needed in the production process Policy in business unit development has not been responsive The low ability of human resources which affects the low quality of products that are Limited process of financing formal financial institutions, due to low financial 70 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 not yet optimal literacy Low literacy and technology implementation The low condition of infrastructure has resulted in high distribution costs and selling prices Source: Primary data, 2021 (processed) At present, the main problems faced by pesantren business units are (see Picture 2): (1) pesantren business units in a region not yet integrated; (2) funding sources that only focus on santri (student); and (3) the low contribution to the economic independence of the people and the nation. Picture 2. Problems Mapping in Pesantren Business Units Sumber: (Bank Indonesia dan Universitas Airlangga, 2019), modified Overview of Smart Tren Program in Semarang City The Smart Tren Program is a digital marketing adoption program for pesantren business units initiated by the Semarang City Government and has full authority over the Semarang City Cooperative and Micro Business Office (Dinas Koperasi dan Usaha Mikro). This program is carried out in an integrated manner with an online single submission which is useful for minimizing errors in the implementation of the established modeling system. The Semarang City Government will collect data on pesantren business units routinely who become business partners, so that their development can be monitored comprehensively and can provide input also direction for the policy-making process related to the strategic plan of the pesantren business unit. This program is expected to become a role model based on ta'awun mutual relations International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 71 so that the empowerment process of the people can be optimal by utilizing the extensive network of pesantren business units supported by the use of appropriate technology. The Smart Tren Program mechanism is carried out comprehensively starting from registration, training, mentoring, product exhibition, financing and digital marketing as a medium of promotion for superior products from the pesantren business unit (see Picture 3 and Table 4). Picture 3. Smart Tren Program Flow Source: (Jasmadi, 2020), modified Table 4. Overview of the Smart Tren Program Adoption Scheme Stages Function Mechanism Data collection Data collection on the membership of Islamic boarding schools in Semarang City • The pesantren business unit applies to a member of the Smart Trend Program at the nearest sub-district office by bringing the registration requirements. • The sub-district office verifies data and inputs data into the Smart Trends Program system. • The sub-district office prints the membership card and submits it to the pesantren business unit, and explains the rights and obligations as a member. Responsible party: District Office Smart Trends Program account registration Registering an account on the Smart Trends Program as a buyer • The buyer (regional organization or individual) registers a Smart Trends Program account as an administrator and enters the requested identity • Data verification by the Semarang City Cooperatives and Micro Business Office • The buyer logs in by entering the registered username and password to make a purchase transaction • To make it easier, you can download the Smart Trends Program application on the Playstore or Appstore so that it can be used anytime and anywhere. Responsible parties: regional organizations and individuals Registering an account in the Smart Trends Program as a seller • The seller (Islamic boarding school business unit that has been registered as a member) registers a Smart Trend Program account as a seller • Data verification by the Semarang City Cooperatives and Micro Business Office • The seller logs in by entering the registered username and password to make a purchase transaction • Uploading superior products from the pesantren business unit that will be sold (name, description or details and product images) • To make it easier, you can download the Smart Trends Program application on the Playstore or Appstore so that it can be used anytime and anywhere • The Semarang City Cooperatives and Micro Business Office will provide information related to the curation of the superior products of the pesantren business unit in the Smart Trend Program Responsible party: pesantren business unit that has been registered as a member 72 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 Product Curation Ensuring that the products to be displayed in the Smart Trends Program have good quality and clear and complete product information • After the pesantren business unit uploads its superior product, it will be verified by the Semarang City Cooperative and Micro Business Office. • The pesantren business unit that passes the verification will bring a sample of its product to the Semarang City Cooperative and Micro Business Office for curation. • The curator will take product photos, inspect, present packaged products, and even taste the taste for evaluation and suggestions if needed, so that product quality is guaranteed. • The curator declares that he has passed or is rejected from the product of the pesantren business unit and returns the assessed product to his pesantren business unit. Responsible party: Semarang City Cooperatives and Micro Business Office Ordering, shipping and paying for products Searching, ordering, and shipping products from the required pesantren business unit • Buyers log in using their username and password into the Smart Trends Program and search for the products they need • After getting the product, the buyer places an order for the required product. • The invoice received by the pesantren business unit and verify that the product order is capable or available for the buying and selling process. • The Semarang City Cooperatives and Micro Business Office change the status of "message" to "accepted" and will be sent to the buyer's account. • The buyer makes an advance payment, and the product order will be carried out. • The pesantren business unit works on the order and is ready to send it to the buyer according to the invoice received • The buyer receives the product he has ordered from the system and signs the receipt of the goods on the invoice. • Buyers make payments to the pesantren business unit • The Semarang City Cooperatives and Micro Business Office changes the status of "accepted" to "completed" and will be sent to the buyer's account. Responsible parties: buyers, sellers, and the Semarang City Cooperatives and Micro Business Office Sumber: Jasmadi, (2020), dimodifikasi Synergy in managing business units is one of the keys to success, so maximizing the adoption of the Smart Tren Program can enable business units to work effectively and efficiently based on the socio-economic strength of pesantren (see Picture 4). The multiplier effect of this program is contributing to solving economic problems and the independence of the people and the nation. International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 73 Picture 4. Management of Pesantren Business Units Souce: (Dardak, 2019; Zaki et al., 2019) modified Business units that will become business partners of the Smart Tren Program are required to register once a year per June each year. It should be done based on consideration as a new academic year for education in Islamic boarding schools. The registration mechanism that must be carried out by pesantren business unit is relatively easy by preparing and submitting all the required documents to online selection system for Smart Tren Program that has been prepared by the Semarang City Government. To maximize the benefits of this program, pesantren business units that have difficulty accessing the Smart Tren Program system can apply for convenience in the online registration process by coming to the sub-district office closest to the pesantren business unit location with complete requirements (see Table 5). Table 5. Criteria and Administrative Requirements for Pesantren Business Units to Join the Smart Tren Program No Criteria No Requirement 1 Semarang City Residents (proven by Semarang City KTP) 1 Photocopy of NSPP (Nomor Statistik Pondok Pesantren - Islamic Boarding School Statistics Number). 2 17 to 55 years old 2a Financial reports of pesantren business units for the last three months (for operating business units). 3 Minimum education is SD or MI or equivalent 2b Submission of business idea proposals that will be produced by the pesantren business unit (for business units that will operate) 4 Must register at least one representative from santri of 3 Photocopy of IUMK or SKU from the pesantren business unit 74 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 the pesantren 5 Compile and submit a proposal for the development of a pesantren business unit 4 Latest photo of the pesantren and its business units (front view or the pesantren logo). 5 Photocopy of assignment letter from the head of the boarding school 6 Photocopy of valid certificate of good behavior 7 Photos of superior product units produced from the pesantren business unit 8 Health certificate from a doctor or public health center 9 Application letter to the Semarang City Government to apply for a business partner in the Smart Tren Program 10 Application letter to the BPRS to apply for financing Source: (Dinas Koperasi dan Usaha Kecil Provinsi Jawa Barat, 2021), modified. Every pesantren that has various fields carried out by pesantren business unit, such as services, fashion, food, beverages, agriculture, crafts, animal husbandry, fisheries, trade have the right to submit their superior products to participate in this Smart Tren Program. The flow of registration starts from completing the required document and administrative requirements, followed by an interview test as a way to confirmation of the submitted data. Those pesantren business units that pass the selection will be contacted by the Smart Tren Program admissions committee via e-mail, telephone, or stated on the website. Make sure the e-mail address or telephone number is active so that participants can view information on the Smart Tren Program online selection system. There are two categories in the Smart Tren Program, including (Dhofier, 2011): (1) startup training, which is intended for pesantren business units that have not had a business for three days; (2) scale-up training, which is needed for business units that have been running for seven days. This program is not only aimed at existing business units, but pesantren business units that are not yet running but have ideas or ideas related to superior products that will be produced can apply for this program registration. The training location is carried out in one of the selected pesantren business units. Furthermore, business assistance programs will be carried out, superior product exhibitions both online and offline until financial assistance. The Adoption Scheme is compiled by the Semarang City Government in a systematic and comprehensive manner so that the Smart Tren Program can run optimally. In addition, the implementation can make easier way for buyers and sellers to make transactions and create a sense of security and comfort in conducting transactions (see Picture 5). International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 75 Picture 5. Schematic of Smart Tren Program Adoption Source: Bank Indonesia dan Universitas Airlangga (2019), modified The process of adopting the Smart Tren Program has go through a long journey so this becomes a challenge for the Semarang City Government through the Semarang City Cooperative and Micro Business Office (Dinas Koperasi dan Usaha Mikro) so that hopefully its benefits can be enjoyed by the pesantren business unit optimally. Step by step is prepared comprehensively so that the modeling of the Smart Tren Program can be ideal. Islamic Boarding School Empowerment Concept Empowerment concept is based on etymology which comes from basic word "power" means strength and ability. In this case, it means trying to facilitate socially and economically weak groups of people in various ways, such as providing education related to their potential development, making training programs so that these groups are able to get out of the previously experienced state of powerlessness (Arfah & Samiha, 2020; Effendi et al., 2020). The success of empowerment program can be seen from fulfillment of the principles that must be met, including (Purnomo et al., 2020): (1) Trying to position with an equal relationship on the basis of the knowledge, expertise and experience a person has with institutions that carry out community empowerment programs; (2) Trying to stimulate the self-reliance of the community as the basis for participatory empowerment that is planned, implemented, monitored and evaluated so the goal will be optimal; (3) Trying to respect and prioritize someone's potential related to independence so there is no need to depend on other parties; and (4) Trying to plan empowerment programs in a sustainable manner, until eventually someone can be independent and more empowered. The context of empowerment for micro and small business actors must be in accordance with their needs, both in ideals terms of technical or institutional so they are expected to be able to contribute optimally to the economy (Bhaat & Kim, 2017). Pemberdayaan (in English, “Empowerment”), as giving authority or power to people from weak categories or in this case not and / or disadvantaged. In addition, the context of empowerment is a strategic tool for updating and improving performance, raising awareness, encouraging, motivating the potential of organizational, government and business actors including in the pesantren business unit (Astuti et al., 2020). The important thing, in determining the ideal empowerment concept to increase the competitiveness of the pesantren business unit, starts from defining what it is and how the criteria for pesantren business unit that are generally accepted. However, the obstacle is the absence of standard definitions and divisions related to the boundaries of pesantren in Indonesia (Astuti et al., 2020). Empowerment in industrial revolution 4.0 era or disruptive 76 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 innovation era which emphasizes the concept of digitalization because in this period the digital economy, artificial intelligence, big data and robots began to emerge (Morris et al., 2005). The form of implementation is carried out comprehensively in various industrial fields, including in product marketing. As one of the leading sectors in Semarang City, business units run by Islamic boarding schools have begun to take advantage of digitalization in the marketing sector of their products through the adoption of the Smart Tren Program. Efforts to succeed in this program need to involve all stakeholders both internally (students, alumni, branch madrasah, and assignment teacher affairs) and externally (regulators, academics and practitioners). The success of this program is determined by the synergy of three aspects, namely (Dardak, 2019): (1) santripreneur (student human resource development in entrepreneurship); (2) pesantrenpreneur (strengthening pesantren institution as an economic power to produce quality halal products); (3) sociopreneur (synergy between pesantren alumni and the community around pesantren as a socio- economic empowerment effort). The Semarang City Government is seriously preparing well so that empowerment through this pesantren business unit can be optimal. Hopefully, each pesantren business unit can produce a product that create socio-economic independence, capacity development, production and distribution technology, marketing based on an innovative and strategic technological. All pesantren in Semarang City that will participate in this program are selected through a selection which will be given an integrated coaching program later to increase their competitiveness, business development and also synergize to build potential business network to become an independent pesantren. The process of adopting this program is also being renewal in smart cities development in Semarang City by economic empowerment of pesantren, so that it can contribute to build an ideal program adoption model. In line with this, the Smart Tren Program has become a forum for 183 boarding schools and 8,977 students in Semarang City. The technical aspects in adopting this program, in addition to entrepreneurship training, capital, packaging design and marketing on various online platforms, this program is also in the form of an electronic catalog that presents various sources of information related to superior economic products or activities from each pesantren that offer comprehensively ranging from lists, types, technical specifications and product prices. The management of this program is carried out by Dinas Koperasi dan Usaha Mikro (Office of Cooperatives and Micro Enterprises) in Semarang City so that it’s non-commercial in nature, means that the transaction manager for incoming orders is directly forwarded to the pesantren business unit without being charged a penny. There are five stages that must be followed systematically as a medium in the process of adopting the Smart Tren Program, including (see Picture 6): International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 77 Picture 6. Roadmap of Smart Tren Program Adoption Source: Barua (2020) modified Information: 1. Comprehension Education Phase This phase is a process of renewing the knowledge possessed by SDI in the pesantren business unit. The pesantren business unit indirectly carries out reforms in internal and external aspects so that it becomes a solution to the problems faced by the pesantren business unit. There are two emphases at this stage that is seeking and processing the information required in the process of adopting the Smart Tren Program. Mastery of these two aspects can minimize uncertainty in the decision-making process in adopting them. 2. Understanding Initiation Phase This phase is the initial preparation for the adoption process in the Smart Tren Program. Internal factors are based on the environment of the pesantren business unit so it shows self-awareness in the process of adopting the pesantren business unit. All information that will be used in the adoption process comes from the pesantren business unit itself, such as: (1) readiness of information technology; (2) quality and quantity of SDI; (3) ability in financial management. While the external factors referred to the environment outside the pesantren business unit that supports the adoption process of the Smart Tren Program, including: (1) availability of government policies; (2) market potential (market share); (3) industrial competitiveness. The selection of appropriate information can provide input on how this adoption process can be carried out in order to facilitate the activities of pesantren business units, especially in conducting digital marketing based on electronic catalog media. So that the collaboration of internal and external factors can optimize the adoption process of the pesantren business unit. 3. Adoption Decision Making Phase This phase is a decision-making process for the pesantren business unit, with various basic considerations, among others: (1) ease of product marketing; (2) easy access to data; (3) expanding market share. Hopefully that the greater the benefits obtained from the adoption of the Smart Tren Program, there will be more business units that can implement it. This program is useful for conducting digital exposure to survive in a sluggish economic condition due to the Covid-19 pandemic. 4. Adoption Result Phase This phase is the result that can be obtained if the pesantren business unit adopts the Smart Tren program. One of the advantages offered by the Smart Tren Program is the transformation from conventional management to digital management so it can 78 International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 overcome management constraints with high adoption costs. The ease of searching for the desired product through the internet network is an added value of the Smart Tren Program, so that consumers only need to enter the keywords for their business products or the name of the pesantren business unit including the origin of the pesantren on the search page. This is influenced by the expansion of market share, increasing market share, increasing customer trust. 5. Follow-up Phase This phase contains a form of evaluating the adoption of the Smart Tren program as well as adjusting the design for optimizing the adoption of programs carried out by pesantren business unit that can run their operations with digital technology updates in order to increase the number of orders, effective promotional media, ease in getting consumers even outside Semarang city. Therefore, the pesantren business unit was able to survive in a sluggish economic condition due to the Covid-19 pandemic. Business Canvas Model Smart Tren Program Given the importance of managing a digital-based pesantren business unit, the adoption of the Smart Tren Program is considered appropriate. So that in the future, an in- depth study and analysis will be carried out, one of which is by using the business canvas model so that it can maximize the benefits of the Smart Tren Program service (see Picture 7). KEY PARTNERSHIP • Semarang City Regional Development Planning Agency (Badan Perencanaan Pembangunan Daerah Kota Semarang) • Semarang City Office of Cooperatives and Micro Enterprises (Dinas Koperasi dan Usaha Mikro Kota Semarang) • Pesantren business unit KEY ACTIVITIES • Development or maintenance of the Smart Tren Program platform • Strengthening the role of stakeholders involved in managing the Smart Tren program. VALUE PROPOSITION • Providing digital marketing services through the Smart Tren Program platform to pesantren business units that are already business partners • Development of Islamic boarding school business units in the form of startup and scale-up training • Providing business assistance programs, online and offline superior product exhibitions to financing assistance CUSTOMER RELATIONSHIP • Local government officials • IT (platform) • Socializing the benefits of the Smart Tren Program to pesantren in Semarang City CUSTOMER SEGMENTS Pesantren business unit: • Located in Semarang City • In accordance with the terms and Smart Tren Program • Business sector that is lawful and in accordance with Islamic law • Does not conflict with the concept of sustainable development • Follow all the stages in the adoption of the Smart Tren Program KEY RESOURCES • Computer and website infrastructure • Offline managerial skills (utilization and development of operational management of pesantren business unit) CHANNELS • External parties in the pesantren business unit • Internal parties in the pesantren business unit REVENUE STREAMS • Services to pesantren business units in digital marketing in order to expand market share and a people-based economy COST STRUCTURE • Development and maintenance costs for platforms and infrastructure International Journal of Islamic Business and Economics (IJIBEC), 6(1) June 2022, 63-81 79 Picture 7. Business Model Canvas in the Smart Tren Program Source: (Dewobroto, 2012; Herawati et al., 2019; Wardhanie & Kumalawati, 2018) 4. Conclusion The Smart Tren Program, which was initiated by the Semarang City Government and under the authority of the Semarang City Cooperative and Micro Business Office (Dinas Koperasi dan Usaha Mikro), is being an alternative solution in overcoming ongoing problems faced by pesantren, especially in the current Covid-19 pandemic conditions. The involvement of various stakeholders is a determinant of the success of the program, this is due to changes in stigma that occur among the community, where pesantren is a religion-based education program that expands its activities in the economic sector. In addition, this program also initiates an increase in the competitiveness of pesantren in the Islamic education industry by utilizing the sophistication of digital technology, this will have a significant positive impact because through times pesantren in Semarang City also expand their education sector towards the economy of the Ummah (society). The significant progress made by these pesantren has also had a positive impact on the image of the Semarang City Government as a manager at the national level, so that this can make Semarang City being the main reference for another district / city governments in Indonesia for developing pesantren- based education programs. This program is expected to become a role model based on ta'awun (mutual relations) so that the empowerment process of the people can be optimal by utilizing the extensive network of pesantren business units supported by the use of appropriate technology. There are two categories in the Smart Tren Program, including: (1) startup training, which is intended for pesantren business units that have not had a business for three days; (2) scale- up training, which is needed for business units that have been running for seven days. The Semarang City Government can carry out the management of this program by online single submission so it can minimize misapplication made by the parties involved, besides this online system provides an opportunity for the Semarang City Government to monitor the progress of program partners and show transparently the process of empowering pesantren as a new basis for sharia-based economic development of the society which has potential to improve Indonesian economy. The limitation of this research is that not all pesantren in Semarang City can be well organized due to incomplete government data and also limited infrastructure to support the implementation of the Smart Tren program in these pesantren. 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