The Role of Islamic Finance in Supporting Sustainable Agriculture and the Green Economy in Indonesia-Malaysia

Nurwenda, Mochamad (2025) The Role of Islamic Finance in Supporting Sustainable Agriculture and the Green Economy in Indonesia-Malaysia. Thesis(S2) thesis, UNIVERSITAS PASUNDAN.

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Abstract

Islamic finance holds strategic potential in driving agricultural sector transformation toward sustainable practices and supporting green economy implementation in Indonesia and Malaysia. This research analyzes the role of Islamic finance in supporting sustainable agriculture and its contribution to the green economy in both countries, focusing on Sharia contract mechanisms that promote environmentally friendly practices and financial institutions' environmental responsibility. The study employs a mixed methods design combining qualitative and quantitative approaches. The research obtained secondary data through a literature review of regulations, financial reports, and policy documents. The study collected primary data through in-depth interviews with Islamic banking practitioners, regulators, farmers, and agricultural stakeholders, plus questionnaires distributed to 200 Islamic financing recipients in both countries. Results indicate different approaches in integrating sustainability principles within Islamic agricultural financing. Based on interviews with Bank Indonesia and Bank Negara Malaysia officials, plus questionnaire data, Indonesia shows a 68% adoption rate of sustainable practices through profit-sharing contracts like muzara'ah, mudharabah, and salam, supported by the Micro Credit Program. Malaysia demonstrates a 72% adoption rate through Agrobank's green financing products. Statistical analysis reveals a significant positive correlation (p<0.05) between Islamic financing implementation and sustainable agricultural technology adoption. This research provides an empirical contribution to developing Islamic financing models supporting the green economy transition in Southeast Asia. Keywords: Islamic; finance, sustainable; agriculture; green.

Item Type:	Thesis (Thesis(S2))
Subjects:	RESEARCH REPORT
Divisions:	Pascasarjana > S2-Magister Kenotariatan 2025
Depositing User:	Mr soeryana soeryana
Date Deposited:	25 Nov 2025 02:03
Last Modified:	25 Nov 2025 02:18
URI:	http://repository.unpas.ac.id/id/eprint/81860

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