Analysis of the Role of Sharia Economics in Supporting the Green Economy in Indonesia
DOI:
https://doi.org/10.35335/q95k8p21Keywords:
Sharia Economics, Green Economy, Sustainable Finance, Green Sukuk, Sustainable DevelopmentAbstract
This research aims to analyze the role of Sharia economics in supporting the green economy in Indonesia. The study is motivated by increasing environmental challenges such as climate change, pollution, and natural resource degradation, which require sustainable economic solutions. Sharia economics offers ethical and sustainable principles that align with the objectives of the green economy, including justice, balance, social welfare, and environmental responsibility. This research uses a qualitative descriptive approach with library research and document analysis methods. Data were collected from academic journals, government reports, sustainability reports, Islamic financial institution publications, and relevant literature related to Islamic economics and green economy development in Indonesia. The findings of this study indicate that Sharia economics contributes significantly to the green economy through various Islamic financial instruments such as green sukuk, Islamic banking, zakat, waqf, and sustainable halal industries. Green sukuk has become an important financing instrument for renewable energy projects, sustainable infrastructure, and climate resilience programs. Islamic banking institutions also support environmentally friendly investments and productive economic sectors through Sharia-based financing mechanisms. In addition, Islamic social finance instruments contribute to community empowerment, poverty reduction, and sustainable development initiatives. However, the research also finds several challenges, including limited sustainability literacy, weak institutional coordination, inadequate green financial product diversification, and gaps between theoretical principles and practical implementation. This study concludes that Sharia economics has strong potential to support sustainable and inclusive economic development in Indonesia. Therefore, stronger policy integration, financial innovation, institutional commitment, and public awareness are necessary to optimize the contribution of Islamic economics toward the realization of a sustainable green economy.
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