Exploring social capital in pesantren communities: a pathway to poverty alleviation in the Tapal Kuda region of Indonesia

Social capital is widely believed to mitigate poverty, yet its role in poverty alleviation within Islamic boarding schools ( pesantren ) remains understudied. This article investigates the relationship between economic vulnerability and social capital within pesantren communities in East Java, Indonesia, with a focus on the Tapal Kuda region. The methodology is retrospective and integrative, qualitative-dominant in its synthesis of longitudinal data, researcher reflexivity, and a systematic literature review. The findings reveal that social capital substantially contributes to poverty alleviation by reducing transaction costs within these communities. However, relational capital rooted in classical Sufism, as reflected in concepts such as qanā ʿ ah (contentment), tawakkul and zuhd – presents challenges to poverty eradication. Structural factors, including demographic constraints and economic conditions, further exacerbate economic deprivation in the region. These factors shape community perceptions and behaviours, often aligning with classical Sufi principles. The present article thus highlights the paradoxical nature of social capital – its capacity to both facilitate and impede poverty reduction – and underscores the critical need to transform the interpretation of Sufi values from passive acceptance into a driver of proactive economic empowerment.