Environmental and Social Safeguards in Indonesia's Green Ṣukūk: Integrating Maqāṣid al-Sharī’a for Sustainable Governance
DOI:
https://doi.org/10.21580/ahkam.2026.36.2.31801Keywords:
environmental and social safeguards, green ṣukūk, maqāṣid al-sharī'a, Sharia compliance, sovereign ṣukūk regulationAbstract
Indonesia has issued sovereign green ṣukūk since 2018, yet project financing regulations do not link environmental and social safeguards to eligibility. This article examines the legal force of the safeguards and whether maqāṣid obliges the state to address this gap. Using normative legal research with statutory, conceptual, and comparative approaches, it maps Government Regulation Number 16 of 2023 against the World Bank’s ten environmental and social standards. It interprets findings through classical and contemporary maqāṣid theory and the Indonesian Ulema Council’s climate change fatwa, comparing Indonesia’s regime with Malaysia’s sustainable and responsible investment ṣukūk framework. The regulation addresses environmental and social feasibility generally but provides no risk classification, exclusion list, grievance mechanism, or sanctions for safeguard breaches. Safeguards remain dispersed across nonbinding issuer frameworks and sectoral statutes, creating a norm-linkage gap. The article recommends dual assurance that incorporates safeguards into binding project eligibility criteria through regulatory provisions and the Sharia compliance channel, making environmental and social protection enforceable obligations within sovereign green ṣukūk financing.Downloads
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