Sustainable working capital management in education: Concept, policy, efficiency, and measurement from an Islamic perspective

Ari Eka Setyaningrum; Ikeu Haerunnisa; Ali Muhdi

doi:10.61511/jekop.v2i2.2025.2632

Authors

Ari Eka Setyaningrum Department of Islamic Education Management, Postgraduate Program, Universitas Islam Negeri Prof. K. H. Saifuddin Zuhri Purwokerto, Banyumas, Central Java 53124, Indonesia
Ikeu Haerunnisa Department of Islamic Education Management, Postgraduate Program, Universitas Islam Negeri Prof. K. H. Saifuddin Zuhri Purwokerto, Banyumas, Central Java 53124, Indonesia
Ali Muhdi Department of Arabic Language Education, Faculty of Tarbiyah and Teacher Training, Universitas Islam Negeri Prof. K. H. Saifuddin Zuhri Purwokerto, Banyumas, Central Java 53124, Indonesia

DOI:

https://doi.org/10.61511/jekop.v2i2.2025.2632

Keywords:

efficiency finance , financing education , management Islamic education, working capital costs

Abstract

Background: Sustainable working capital management is crucial for ensuring the operational sustainability, financial stability, and long-term resource resilience of educational institutions, which in turn underpins their contribution to inclusive and sustainable human capital development. In Islamic education, management must also reflect principles of accountability, justice, and maqāṣid al-sharī‘ah, reinforcing responsible, sustainable resource stewardship at the institutional level. Methods: This study used a qualitative approach based on library research. Data were drawn from relevant scientific literature, government regulations, and previous studies concerning educational working capital management, institutional financial sustainability, and Islamic financial principles. Findings: The findings indicate that educational working capital consists primarily of short-term operational funds that must be managed effectively, efficiently, transparently, and accountably to sustain institutional operations over time. Effective and sustainable management contributes to institutional financial stability, improved learning quality, and greater institutional independence, supporting the long-term viability of educational service delivery. From an Islamic perspective, working capital is an amanah that should be managed in accordance with maqāṣid al-sharī‘ah while avoiding riba, waste, and injustice — principles that align closely with sustainable and responsible resource management. Its efficiency can be assessed through quantitative and qualitative indicators, including working capital ratios, cost per learner, financial reporting transparency, and its contribution to sustainable educational service quality. Conclusion: Professional and Islamic-oriented working capital management provides a strong foundation for educational institutions' financial sustainability, resource efficiency, and long-term competitiveness. Novelty/Originality of this article: This article integrates conventional working capital management principles with Islamic education and maqāṣid al-sharī‘ah and proposes a multidimensional framework to assess sustainable working capital efficiency in educational institutions.

References

Abuzayed, B. (2012). Working capital management and firms’ performance in emerging markets: The case of Jordan. International Journal of Managerial Finance, 8, 155-179.https://doi.org/10.1108/17439131211216620

Aktaş, E. E. (2023). Green budgeting and long-term fiscal sustainability. IJOPEC Publishing, 12.https://www.researchgate.net/publication/378805328_Green_Budgeting_and_Long-Term_Fiscal_Sustainability

Andonoska, L., & Alda, E. (2025). Exploring budget surpluses: Budget absorption problems in recently decentralized macedonian municipalities. International Journal of Public Administration, 48. https://doi.org/10.1080/01900692.2024.2421204

Arbo, P. & P. Benneworth. (2007). Understanding the regional contribution of higher education institutions: A literature review. OECD Education Working Papers, No. 9, OECD Publishing, Paris, https://doi.org/10.1787/161208155312.

Arora, M. (2025). Making green schools a reality through economically sustainable strategies. Journal of Education for Sustainable Development Studies, 2(2), 146–155. https://doi.org/10.70232/jesds.v2i2.51

Aulia, R. P., Suhardi, M., Sulistiawati, N., Angrani, J., Aprilian, I. D., & Solihin, M. (2025). Strategi perencanaan dan penganggaran pendidikan berbasis kinerja: Kajian literatur tentang efektivitas dan efisiensi penggunaan dana pendidikan. Manajerial Jurnal Inovasi Manajemen Dan Supervisi Pendidikan, 5(2), 497–507. https://doi.org/10.51878/manajerial.v5i2.6394

Babalola, A., & Olawuyi, D. S. (2021). Advancing environmental education for sustainable development in higher education in Nigeria: Current challenges and future directions. Sustainability, 13(19), 10808. https://doi.org/10.3390/su131910808

D’Orazio, P. (2025). Addressing climate risks through fiscal policy in emerging and developing economies : What do we know and what lies ahead ? Energy Research & Social Science, 119(July), 103852. https://doi.org/10.1016/j.erss.2024.103852

Debataraja, B. L. (2024). Manajemen keuangan sekolah dalam meningkatkan mutu pendidikan. Jurilma: Jurnal Ilmu Manajemen Indonesia, 1(1), 57–62. https://ejournal.rizaniamedia.com/index.php/jurilma/article/view/13/11

Denhardt, J. V., & Denhardt, R. B. (2015). The new public service: Serving, not steering.

Fauzan, A., Utami, D. R., Noviarita, H., & Romlah. (2025). Rekonstruksi konsep manajemen biaya dalam pendidikan islam: Analisis efisiensi, transparansi, dan nilai syariah. Kartika: Jurnal Studi Keislaman, 5(2), 845–860. https://doi.org/10.59240/kjsk.v5i2.173

Huda, N., Imron, M., & Maryoni, H. S. (2024). Increasing green economic growth through education and income levels. Bisman (Bisnis Dan Manajemen) The Journal of Business and Management, 7, 213–222. https://doi.org/10.36815/bisman.v7i1.3188

Lee, C. C., Wang, F., & Lee, C. C. (2025). How does education promote green digital finance ? Evidence from China. Financial Innovation. https://doi.org/10.1186/s40854-024-00688-2

Lyu, J.-Y., Lin, W.-B., & Wang, P.-S. (2025). Integrating green finance into vocational education: Curriculum design and implementation strategies for sustainable development. American Journal of STEM Education, 15, 23-44. https://doi.org/10.32674/42dfnt47

Maharani, N. A., Hidayah, F., Darmawan, D., & Trihantoyo, S. (2024). Analisis sumber dan jenis pembiayaan pendidikan di Indonesia. Jurnal Bintang Pendidikan Indonesia (JUBPI), 2(3). https://doi.org/10.55606/jubpi.v2i3.3004

Mulyasa, E., & Dyah, W. (2022). Implementasi sistem penjaminan mutu internal di era merdeka belajar. Aksara: Jurnal Ilmu Pendidikan Nonformal, 08(May), 933–944. http://dx.doi.org/10.37905/aksara.8.2.933-944.2022

Munir, M., & Kun Sholikhah, I. (2023). Jenis-jenis pembiayaan pendidikan. CERMIN: Jurnal Manajemen dan Pendidikan Berbasis Islam Nusantara, 2(2), 65–71. Retrieved from https://ejournal.staidapondokkrempyang.ac.id/index.php/cjmp/article/view/331

Nsiah, J., Agyemang, A. O., & Bawuah, B. (2025). Advancing environmental performance in emerging economies: The roles of working capital management and capital expenditure. Cogent Business & Management, 12(1). https://doi.org/10.1080/23311975.2025.2566902

Organisation for Economic Co-operation and Development. (2022). Value for money in school education.

Saleh Presiden, A. V., Fitriani, N. I., Arianti, E., Wahyudi, M. A., & Nurkolis. (2026). Analysis of educational financing management based on management functions: Planning, budgeting, accounting, auditing, and reporting in primary schools. Jurnal Ragam Pengabdian, 3(2), 3717-3733. https://doi.org/10.62710/ba7p6e60

Rizka, A. F., Ahmad, M., & Rochimah, H. (2025). Accountability and transparency of boss funds: An overview of financial management in public schools. Journal of English Language and Education, 10(4), 377-382. https://doi.org/10.31004/jele.v10i4.1051

Rukmana, A., Amirullah., Hasan, I., & Aprilliantoni. (2025). Biaya-biaya dan pendanaan pendidikan: Kecenderungan dan dampak kebijakan. Didaktik : Jurnal Ilmiah PGSD FKIP Universitas Mandiri, 11, 217–227. https://journal.stkipsubang.ac.id/index.php/didaktik/article/view/9436/5666

Sa’diyah, K., Pulungan, T. N., Siswanto, D. H., & Pisriwati, S. A. (2026). Strategic school financial management and its impact on educational quality: A participatory, transparent, and accountable approach. Jurnal Ilmiah Manajemen dan Akuntansi, 3(3), 01-09. https://doi.org/10.69714/y4bsnf24

Safitri, S., & Ramadan, Z. H. (2022). Implementasi literasi budaya dan kewarganegaraan di sekolah dasar. Jurnal Mimbar Ilmu, 27(1), 109–116. https://doi.org/10.23887/mi.v27i1.45034

Samsuri, S. (2022). Relasi manajemen keuangan dan kualitas lembaga pendidikan Islam. Amorti: Jurnal Studi Islam Interdisipliner, 1(2), 111–121. https://doi.org/10.59944/amorti.v1i2.17

Rahayu, H. S., Amri, F., Maneges, G. A., & Nurdina, S. (2025). Literature review: Peran dana BOS dalam meningkatkan kualitas dan akses pendidikan. CARONG: Jurnal Pendidikan, Sosial dan Humaniora, 2(2), 790–798. https://doi.org/10.62710/v1p4yc97

Singh, P. H., & Kumar, S. (2014). Working capital management: a literature review and research agenda. Qualitative Research in Financial Markets, 6(2), 173-197. https://doi.org/10.1108/QRFM-04-2013-0010

Suwarni, Siska, J., Perdima, F.E., & Aurelio, S.G. (2026). Educational financing management strategy in improving the quality of school services. International Journal of Learning Reformation in Elementary Education. https://doi.org/10.56741/iistr.ijlree.001507

Sugiartini, P., & Jannah, K. I. B. (2025). Implementing sustainable practices in educational management: Challenges and opportunities. Journal of Institutional Educational Management, 1(1), 11-20. https://jiemjournal.com/index.php/jiemjournal/article/view/2

Neha, P. G., Ihtiram, R. K,, Gülsün, K. (2024). Virtual lifelong learning: Educating society with modern communication technologies. Bentham Science Publishers. https://doi.org/10.2174/97898151965661240101

Wilkinson, S. B., Phillips, S. M., Atherton, P. J., Patel, R., Yarasheski, K. E., Tarnopolsky, M. A., & Rennie, M. J. (2008). Differential effects of resistance and endurance exercise in the fed state on signalling molecule phosphorylation and protein synthesis in human muscle. The Journal of Physiology, 586(15), 3701–3717. https://doi.org/10.1113/jphysiol.2008.153916

Yolanda, M., & Karim, H. A. (2025). Conceptual analysis of working capital management in education: An educational financial management perspective. ICMIE Proceedings, July, 264–270. https://doi.org/10.30983/icmie.v2i1.57

Zahirah, S. Y., & Suhaedi, W. (2025). Optimizing financial management and reporting to increase accountability and transparency in Islamic boarding schools‎. Journal of Islamic Economics Lariba, 11(1), 25-44. https://doi.org/10.20885/jielariba.vol11.iss1.art2