The Role of Retail Green Sukuk in Advancing Green Economy Development in Indonesia: An Islamic Economic Perspective

Abstrak

Introduction/Main Objectives: This study examines the role of Retail Green Sukuk as a Sharia-compliant financing instrument in supporting Indonesia’s Green Economy and sustainable development. Research Methods: A qualitative descriptive library research approach was used, drawing on government reports, regulations, academic literature, and official publications. Data were analyzed using the Miles and Huberman model. Finding/Results: Retail Green Sukuk supports financing for renewable energy, water conservation, green transportation, waste management, and biodiversity projects. Its implementation reflects Maqashid Sharia, Khalifah, Amanah, and Maslahah. Major opportunities include Indonesia’s large Muslim population, growing Sharia investment participation, and government support, while challenges involve limited financial literacy, regulatory complexity, infrastructure constraints, high costs, and greenwashing risks. Conclusion: Retail Green Sukuk can accelerate Indonesia’s low-carbon transition and strengthen sustainable Islamic finance through stronger regulation, collaboration, and public education.