Green Sukuk and Maqasid al-Shariah: Evaluating Islamic Sustainable Finance in Indonesia

Abstract

In recent years, the rapid growth of sustainable finance has encouraged many countries, including Indonesia, to develop Islamic financial instruments that align with global environmental objectives. One of the most prominent instruments is Green Sukuk, which integrates financial returns with social and ecological responsibility. However, the extent to which Green Sukuk fulfillsthe principles of Maqasid al-Shariah, particularly in promoting social welfare, environmental protection, and economic justice, remains insufficiently explored. This study aims to evaluate the role of Green Sukuk in achieving Islamic sustainable finance
within the framework of Maqasid al-Shariah and to analyze its regulatory and
implementation aspects in Indonesia. Using a qualitative-descriptive approach supported by document analysis, this research examines data from official reports of the Indonesian Ministry of Finance, OJK, and existing academic literature. The findings reveal that Green Sukuk significantly contributes to financing environmentally friendly infrastructure projects while upholding Islamic ethical values. Nevertheless, challenges persist in the areas of transparency, project selection criteria, and public awareness. The study concludes that Green Sukuk represents a strategic instrument to realize a resilient and sustainable Islamic financial system, in line with both national development goals and Shariah principles. Strengthening regulatory frameworks and promoting cross-sector collaboration are essential to enhance its long-term impact