Legal Frameworks for Green Sukuk: Bridging Sharia-Compliant Environmental Finance and Community Development
DOI:
https://doi.org/10.15575/ks.v8i1.51741Keywords:
Green Sukuk, Sharia Law, Sustainable Finance, ESG, Maqasid Al-ShariahAbstract
This study examines legal fragmentation in Indonesia’s Green Sukuk governance, particularly the separation between environmental verification, Sharia compliance, and community impact reporting. Using a normative juridical approach combined with content analysis of legislation, DSN-MUI fatwas, and official documents issued by the Ministry of Finance and the Financial Services Authority (OJK), this study analyzes the extent to which Indonesia’s Green Sukuk framework integrates environmental regulation and Islamic financial law. A comparative legal review of Malaysia and the United Arab Emirates is also conducted to assess alternative models of ESG-Sharia governance. The findings show that Indonesia’s Green Sukuk has a strong legal foundation through Law No. 19/2008 on State Sharia Securities, OJK Regulation No. 60/2017, and DSN-MUI Fatwa No. 117/2018. However, the existing framework still lacks an integrated mechanism for aligning green project verification, Sharia audit, and community development assessment. The analysis identifies institutional coordination gaps, normative separation between environmental and Sharia standards, and limited social impact indicators in Green Sukuk reporting. This study contributes to Islamic financial law by conceptualizing an integrated Sharia-environmental governance framework that links regulatory authority, maqasid al-shariah-based assessment, and community-oriented impact evaluation.
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