Implementing hifz al-bi’ah in central bank environmental policies
DOI:
https://doi.org/10.61511/jembar.v4i2.2027.3663Keywords:
central banking, green finance, hifz al-bi’ah, macroprudential policy, maqashid al-shariah, sustainable financeAbstract
Background: Climate change has become increasingly relevant to financial-system stability because physical and transition risks can affect asset quality, repayment capacity, and the allocation of financial resources. Within Islamic economics, hifz al-bi’ah provides an ethical perspective on environmental preservation as a dimension of maqashid al-shariah. This study examines how hifz al-bi’ah can conceptually inform environmental and macroprudential policies in Indonesia. Methods: A qualitative literature-based approach was employed to analyze 46 sources, comprising 40 scholarly articles published between 2020 and 2025, three regulatory or official policy documents, and three primary Islamic sources. The analysis involved source screening, thematic coding, comparative synthesis, and conceptual mapping of hifz al-bi’ah, sustainable finance, and central-bank policy instruments. Findings: The analysis indicates that selected Bank Indonesia instruments, including environmentally oriented LTV/FTV and down-payment policies, the Macroprudential Inclusive Financing Ratio, and the Macroprudential Liquidity Incentive Policy, can be conceptually interpreted as mechanisms that provide financial incentives consistent with environmental preservation. However, these instruments were not originally formulated explicitly on the basis of hifz al-bi’ah or maqashid al-shariah. Further policy development may incorporate environmental-risk assessment, financed-emissions disclosure, and green-taxonomy coordination, subject to statutory mandates and empirical evaluation. Conclusion: Hifz al-bi’ah offers a normative framework for connecting Islamic environmental ethics with sustainable central banking and macroprudential policy. The findings support conceptual alignment rather than a claim that Bank Indonesia has formally adopted maqashid al-shariah as a policy foundation. Novelty/Originality of this article: This study develops a conceptual mapping between hifz al-bi’ah, sustainable finance, and Indonesian central-bank instruments, providing an Islamic normative perspective for understanding the environmental dimension of macroprudential policy without conflating normative principles with formal policy mandates.
References
Accinelli, E., Giombini, G., Muñiz, H., Owen, L., Policardo, L., & Sánchez Carrera, E. J. (2025). On the game of going green: How do consumers, firms, and banks struggle to escape environmental traps? European Economic Review, 180, 105157. https://doi.org/10.1016/j.euroecorev.2025.105157
Ali, Y., & Khalid, H. (2025). Green banking policies and sustainable performance: Unraveling the mediating role of GC and EP. AIMS Environmental Science, 12(5), 744–769. https://doi.org/10.3934/environsci.2025033
Alwi Syahrial, M. (2024). Transformasi konsep hifdzul bi’ah terhadap maraknya pembakaran liar di Indonesia. Jurnal Al-Jina’i Al-Islami, 1(2), 118–133. https://doi.org/10.15575/jaa.v1i2.722
Bank Indonesia. (n.d.). Green financing. https://www.bi.go.id/
Bank Indonesia. (2025). Peraturan Bank Indonesia Nomor 9 Tahun 2025 tentang kebijakan insentif likuiditas makroprudensial. https://www.bi.go.id/id/publikasi/peraturan/Pages/PBI_092025.aspx
Chien, F., Zhang, Y., & Sadiq, M. (2025). Fintech innovation in green finance: A disruptive force or a complementary tool? International Review of Economics & Finance, 104, 104658. https://doi.org/10.1016/j.iref.2025.104658
Desai, R., & Patel, S. (2025). Green loan disclosures and bank market valuation: Unveiling the catalyst role of sustainable governance. Managerial and Decision Economics, 46(7), 3806–3819. https://doi.org/10.1002/mde.4557
D’Orazio, P., & Popoyan, L. (2022). Realising central banks’ climate ambitions through financial stability mandates. Intereconomics, 57(2), 103–111. https://doi.org/10.1007/s10272-022-1039-4
Desvaria, F., B., I., & Polindi, M. (2025). Green banking: Implementasi dan kontribusi terhadap pencapaian Sustainable Development Goals 1 di sektor perbankan syariah. An-Nisbah: Jurnal Perbankan Syariah, 6(2), 327–341. https://doi.org/10.51339/nisbah.v6i2.4041
Hasanah, N., & Hariyono, S. (2022). Analisis implementasi green financing dan kinerja keuangan terhadap profitabilitas perbankan umum di Indonesia. Jurnal Ekobis: Ekonomi Bisnis & Manajemen, 12(1), 149–157. https://doi.org/10.37932/j.e.v12i1.444
Hatikasari, S., & Ganefi, G. (2023). Development of green banking concept in banking policy for considering environmental protection. Journal of Sustainable Development and Regulatory Issues (JSDERI), 1(3), 133–150. https://doi.org/10.53955/jsderi.v1i3.14
Henide, K. (2025). Don’t stop greenin’: Green bond issuance and the equity halo effect. Journal of Asset Management, 26(7), 741–752. https://doi.org/10.1057/s41260-025-00430-2
Hermala, I., Sunitiyoso, Y., & Sudrajad, O. Y. (2024). Green financing using Islamic finance instruments in Indonesia: A bibliometrics and literature review. International Journal of Energy Economics and Policy, 15(1), 239–248. https://doi.org/10.32479/ijeep.17208
Issa, S. O., Alabi, A. T., & Ubandawaki, A. T. (2025). Climate change governance, Shariah governance quality, and financed emission mitigation: Evidence from Islamic banks in Southeast and West Asia. Borsa Istanbul Review, 25(4), 722–732. https://doi.org/10.1016/j.bir.2025.03.011
Joshipura, M., Mathur, S., Joshipura, N., & Castelino, R. (2025). Decoding green bonds for sustainable development: A hybrid review and research agenda. Journal of Economic Surveys, 39(5), 2042–2056. https://doi.org/10.1111/joes.12687
Juhro, S. M., Syarifuddin, F., & Sakti, A. (2025). Inclusive welfare: On the role of Islamic social-public finance and monetary economics. Springer Nature Singapore. https://doi.org/10.1007/978-981-96-0051-9
Khaer, M., & Anwar, S. (2022). Encouraging sustainability and innovation: Green banking practices growing in Indonesia. EKSYAR: Jurnal Ekonomi Syari’ah & Bisnis Islam, 9(2), 173–182. https://doi.org/10.54956/eksyar.v9i2.422
Khodijah, S., Iqbal Fasa, M., & Suharto, S. (2023). Penerapan green banking di lingkungan Bank BJB Syariah Indonesia. Jihbiz: Jurnal Ekonomi, Keuangan dan Perbankan Syariah, 7(2), 111–123. https://doi.org/10.33379/jihbiz.v7i2.2527
Khuluq, M. K., & Asmuni, A. (2025). Hifz al-bi’ah as part of Maqashid Al-Shari’ah and its relevance in the context of global climate change. Indonesian Journal of Interdisciplinary Islamic Studies, 7(2). https://doi.org/10.20885/ijiis.vol7.iss2.art3
Kumar, J., Rani, G., Rani, M., & Rani, V. (2024). Do green banking practices improve the sustainability performance of banking institutions? The mediating role of green finance. Social Responsibility Journal, 20(10), 1990–2007. https://doi.org/10.1108/SRJ-02-2024-0096
Mallongi, A. A., Fitri, A. A., Hastina, N., Annisa, I. N., & Sudarmin, A. B. M. (2025). Konsep hifdz al-bi’ah dalam pengelolaan sumber mata air alam untuk kesejahteraan umat. Jurnal Ruhul Islam, 3(2), 1–24. https://doi.org/10.33476/jri.v3i2.257
Matos Rosa, S. (2025). Green monetary policy measures and central bank mandates: A comparative political economy analysis. Politics and Governance, 13, 8919. https://doi.org/10.17645/pag.8919
Mei, U., Solikha, A. F., & Azahra, P. K. (2025). Enhancing green banking practices to support Sustainable Development Goals: A case study of Bank Syariah Indonesia in Purwokerto. Journal of Finance and Islamic Banking, 7(2). https://doi.org/10.22515/jfib.v7i2.10017
Miyan, M. S., Cheong, C. W. H., Sharif, A., & Afshan, S. (2025). Greening the future: How green finance and innovation shape environmental sustainability in D-8 nations. Sustainable Futures, 10, 101168. https://doi.org/10.1016/j.sftr.2025.101168
Muchiri, M. K., Fekete-Farkas, M., & Erdei-Gally, S. K. (2025). How do green banking practices impact banks’ profitability? A meta-analysis. Journal of Risk and Financial Management, 18(6), 320. https://doi.org/10.3390/jrfm18060320
Novák, Z., Fáth, G., Ge, C., & Kumar, P. (2025). Inclusive green finance: As an approach of developing a comprehensive indicator for BRICS and other emerging economies. Journal of Economic Structures, 14(1), 10. https://doi.org/10.1186/s40008-025-00354-5
Pachiyappan, S., Balakrishnan, R., Joseph, A., Patil, A., Arjun, B. S., & Gowri, S. R. (2025). Does green financing affect the sustainable economic growth of emerging economies? Evidence from panel ARDL model. Economics, 13(4), 39–53. https://doi.org/10.2478/eoik-2025-0084
Priyatno, P. D., Ridwan, A. H., & Syarif, N. (2026). Circular economy philosophy based on hifz al-bi’ah for economic justice. Journal of Islamic Economics and Finance Studies, 6(2), 480–497. https://doi.org/10.47700/jiefes.v6i2.12741
Ramdani, R., Mawardi, I., & Sulaeman, S. (2023). Impact of green banking implementation, financial performance, and COVID-19 crisis on Islamic bank profitability in Indonesia. International Journal of Islamic Economics and Finance (IJIEF), 6(2), 225–246. https://doi.org/10.18196/ijief.v6i2.16802
Rois, C., Jannani, N., & Mufid, M. H. (2024). Islamic law paradigm responding conflicts of interest of economic development and ecological conservation: Hifdz al-bi’ah perspective. Al-Istinbath: Jurnal Hukum Islam, 9(1), 193. https://doi.org/10.29240/jhi.v9i1.8660
Rukh, L., Ullah, S., Sanober, I., Hayat, U., & Khan, S. (2025). Evaluating green finance: Investment patterns and environmental outcomes. International Journal of Financial Studies, 13(4), 245. https://doi.org/10.3390/ijfs13040245
Tekin, Z. (2025). Green banking strategies: Evidence from Turkish banks. Borsa Istanbul Review, 25(5), 930–938. https://doi.org/10.1016/j.bir.2025.05.008
Tung, P.-H., Chiu, Y.-H., & Huang, C.-H. (2025). Exploring the research development trajectory and trends of green finance. Asia Pacific Management Review, 30(3), 100329. https://doi.org/10.1016/j.apmrv.2024.10.001
Wu, D., & Zuo, X. (2025). Curbing financial greenwashing: Policy tools, legal mechanisms, and corporate responsibility for sustainable development. International Review of Economics & Finance, 103,104480. https://doi.org/10.1016/j.iref.2025.104480
Zhang, Q., Du, K., Fang, W., & Tu, Q. (2025). Environmental regulation, banking risk and green finance policy: A DSGE approach. Sustainable Futures, 10, 101241. https://doi.org/10.1016/j.sftr.2025.101241
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2027 Dewi Insyirahti Salsabilla
This work is licensed under a Creative Commons Attribution 4.0 International License.
