Building a Green Future: The Contribution of Islamic Economics to Sustainable Development in Indonesia

By Dr Abdul Wadud Nafis, LC., MEI

Indonesia, the world’s largest archipelagic country, is blessed with abundant natural resources. However, climate crisis, deforestation, environmental pollution, and social inequality demand a new approach to development. This is where the concept of a green future becomes urgent, and Islamic economics emerges as a holistic system to promote just, sustainable, and spiritually rooted development.

  1. Understanding the Green Future

The green future is a long-term vision of development that emphasizes:

a. Environmental sustainability: Utilizing natural resources without damaging ecosystems.
b. Social justice: Fair distribution of resources and development outcomes.
c. Green innovation: Use of clean and renewable technologies.
d. Circular economy: A production-consumption system that minimizes waste.
e. Ecological ethics: Human behavior that maintains harmony with nature.

A green future is not merely an ecological dream, but a moral and strategic necessity to ensure the survival of humanity and all living beings.

  1. Islamic Economic Principles in Line with a Green Future

Islamic economics places spiritual and moral values at the foundation of economic life. Principles aligned with green development include:

a. Tawhid (Oneness of God): The unity of God and His creation demands that humans maintain balance.
b. Khilafah (Stewardship): Humans, as stewards of the Earth, are obliged to sustain the environment.
c. Maslahah (Public Interest): All economic activities must benefit the public, including environmental preservation.
d. Justice and Moderation (Adl and I’tidal): Encouraging balance and justice between human needs and environmental protection.

  1. Islamic Economic Instruments to Support a Green Future

Islamic economics offers various practical tools to support a green future:

a. Environmental Zakat: Zakat used for reforestation, waste management, clean water projects, and ecological education.
b. Green Waqf (Islamic Endowment): Waqf land and assets used for forest conservation, organic farming, and renewable energy.
c. Green Sharia Sukuk: Islamic bonds issued by the Indonesian government to fund green projects.
d. Green Qardhul Hasan: Interest-free loans for eco-friendly farmers, fishermen, and SMEs.

  1. Islamic Financial Institutions and Green Finance

a. Islamic banks can finance sustainable development projects: solar panels, sanitation, green transportation.
b. BMTs and Islamic cooperatives can fund pesticide-free agriculture, organic livestock, and eco-tourism.
c. Takaful (Islamic insurance) promotes protection for environmentally friendly businesses from climate-related risks.

  1. The Role of Pesantren, Mosques, and Islamic Institutions

Islamic institutions have great potential to build environmental awareness:

a. Green Pesantren: Encourage students to manage agriculture, livestock, and alternative energy.
b. Eco-friendly Mosques: Energy and water-efficient, actively involved in tree-planting movements.
c. Ecological Da’wah: Preachers promoting clean living, energy saving, and nature conservation.

  1. Ecopreneurs and Islamic Business Ethics

a. Muslim Ecopreneurs: Entrepreneurs running halal businesses with environmental orientation.
b. Islamic Business Ethics: Reject businesses that pollute, dump waste indiscriminately, or exploit natural resources.
c. Green Islamic SMEs: Supported by Islamic financial institutions and zakat to compete sustainably.

  1. Public Policy and Islamic Sustainable Development

Governments and financial authorities should:

a. Explore integration of Islamic economic principles into environmental regulations.
b. Provide tax and fiscal incentives for green Islamic businesses.
c. Develop a national roadmap for a sharia-based green economy.

  1. The Role of Academics and Muslim Scholars

a. Conduct research and development in green Islamic economics.
b. Design Islamic education curricula that teach ecological ethics and sustainable economics.

Conclusion

Amid environmental crises and global inequality, the world needs a new direction in building civilization—one that not only ensures human welfare but also honors nature. Here, Islamic economics shines as a guiding light toward a green future.

The green future is not merely an ecological vision, but a call of faith and a moral responsibility. Islam never separates worship from sustainability, spirituality from ecology, justice from conservation. By reviving zakat, waqf, Islamic finance, and ethical business practices, we not only build a just economy, but also bequeath a clean, fertile, and peaceful Earth to future generations.

Now is the time for Indonesia to rise and lead the world with an Islamic, green, and humane development model—because a blessed future is a sustainable one.

References

  1. The Holy Qur’an
  2. Authentic Hadith
  3. Chapra, M. Umer. The Future of Economics: An Islamic Perspective. Leicester: Islamic Foundation, 2000.
  4. Antonio, M. Syafii. Bank Syariah: Dari Teori ke Praktik. Jakarta: Gema Insani, 2001.
  5. Zaman, Arshad. Islamic Economics and Sustainable Development. Islamabad: IIIT Pakistan, 2010.
  6. Nasution, Adiwarman Karim. Ekonomi Mikro Islam. Jakarta: Rajagrafindo Persada, 2007.
  7. Harahap, Sofyan S. Etika Bisnis dalam Perspektif Islam. Jakarta: Bumi Aksara, 2002.
  8. Indonesia Ministry of Finance. Green Sukuk Report 2023. Jakarta: DJPPR – Kementerian Keuangan RI, 2023.
  9. Badan Wakaf Indonesia. Panduan Pengelolaan Wakaf Produktif. Jakarta: BWI, 2021.
  10. UNEP. Islamic Finance and the UN Sustainable Development Goals. Geneva: UNEP, 2016.
  11. Munir, Abdul Ghafar Ismail. Islamic Finance and Green Economy: Shariah and Policy Framework. Kuala Lumpur: ISRA Publications, 2020.
  12. Yusuf al-Qaradawi. Fiqh al-Zakah. Beirut: Muassasah al-Risalah, 2002.

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