This article explores the role of Kiai leadership and management strategies in fostering character education at Islamic boarding schools, with a focus on the integration of Sufism as a spiritual approach to shaping students’ Islamic character (akhlak). Conducted at the At-Tamur Islamic Boarding School in Bandung, the study employs a qualitative method using interviews with the school’s director, a teacher, and alumni, alongside observations and documentation. Secondary data were drawn from scholarly articles, books, and other relevant literature. The findings reveal that the Kiai’s character education strategy is deeply rooted in Sufistic principles, emphasizing both hablu minallah (relationship with God) through weekly Friday night religious recitations, and hablu minannas (relationship with others) through active community service. The study contributes to the discourse on Islamic education by showcasing the practical application of Sufism in contemporary pesantren leadership.

Purpose– This study investigates how financially literate Indonesian students are, and how Indonesian students’ attitudes toward financial matters are, based on the data of the Program for International Student Assessment (PISA) 2018.
Design/methodology/approach–Analyzing responses from3,15815-year-old students across 43 items for the Financial Literacy Cognitive Assessment and 7,001 respondents across 85 items for the Financial Literacy Survey, the study employs the Rasch Partial Credit Model in WINSTEPS 3.73 for analysis.
Findings– Results indicate a varied performance among students, with scores ranging from 4.20 logit to 2.26 logit and an average score of 0.82 logit. Approximately 48.5% of students scored above this average, highlighting a need for targeted financial education, particularly in complex areas like company profit and repayment scores. Despite familiarity with concepts like “wage” and aspirations for entrepreneurship, concerns arise about insufficient financial education from parents and teachers, indicating a necessity for enhanced financial management skills and awareness among students, regardless of gender.
Research limitations/implications– This study advances research by using the Rasch model to reveal gaps between student confidence and actual financial skills. It highlights the need for progressive financial education basedonability levels. Future studies shouldtrack changes over timeandcompareresultsbyregion, schooltype or socioeconomic background. The small gender gap in attitudes also invites qualitative research to explore underlying factors influencing students’ financial behaviors.
Practical implications– Findings call for stronger integration of financial literacy in schools. Students’ low performance indicates a need for age-appropriate, skill-building instruction. Teachers should receive targeted training, and lessons should link financial concepts to real-life applications like budgeting or entrepreneurship. This approach helps students apply knowledge practically and develop responsible financial attitudes.
Social implications– Students receive limited financial guidance outside school, showing the importance of broader community involvement. Parent education, local workshops and partnerships with religious or civic groups can support financial learning. These efforts ensure students gain financial knowledge not only just in classrooms but also in everyday life settings.
Originality/value– This study is the first to examine Indonesian students’ financial literacy using a large-scale, psychometrically rigorous approach. Unlike previous research that focuses on cross-country comparisons or gender disparities, it provides a nationally focused analysis combining cognitive and attitudinal measures through Rasch modeling. By offering detailed insights into students’strengths and weaknesses, the study fills a significant gap in the literature and lays the groundwork for context-specific educational reforms in financial literacy.