Maqasid al-Shari'ah for Green Business Oversight: Addressing Greenwashing by Design in Indonesia’s Energy Transition

Aji Baskoro(1)
(1) Universitas Gadjah Mada, Indonesia

Abstract

Abstract: Greenwashing by design refers to structural misrepresentation embedded within energy transition policies, project planning, and corporate disclosure mechanisms. This phenomenon exposes limitations in sustainability governance in Indonesia’s energy sector, since ESG based regulatory instruments often privilege procedural compliance and quantitative indicators while overlooking deception rooted in policy design and regulatory architecture. This article proposes Maqāṣid al-Sharīʿah (objectives of Islamic law) as a normative ethical framework for evaluating sustainability claims beyond formal compliance, with analytical attention to intention, systemic harm, and distributive justice. Methodologically, the study applies a normative legal research design that combines conceptual and philosophical approaches and relies on secondary sources, including doctrinal Islamic legal texts, critical literature on sustainability governance, and contemporary scholarship on green economics and environmental ethics. Inductive mapping of greenwashing by design practices is integrated with a deductive construction of a maqāṣid-based evaluative model to show how Islamic legal theory can be operationalized for sustainability oversight. Findings indicate that maqāṣid integration shifts greenwashing assessment from a technical issue of disclosure accuracy toward an ethical problem of governance design and accountability. Arguments of this article also repositions maqāṣid al-sharīʿah as a critical normative theory of regulatory governance in Muslim majority settings, strengthening debates on green business regulation. Conceptual scope and the absence of empirical validation remain limitations, so future research should test institutional implementation and sector specific regulatory mechanisms.


Abstrak: Fenomena greenwashing by design merujuk pada praktik misrepresentasi yang ditanamkan sejak tahap perancangan kebijakan transisi energi, perencanaan proyek, hingga mekanisme pelaporan korporasi. Berbagai kajian tentang tata kelola menunjukkan instrumen ESG (environmental, social, governance) sering menekankan kepatuhan prosedural dan indikator kuantitatif, sehingga kurang peka terhadap penyesatan yang bekerja pada tingkat desain kebijakan dan arsitektur regulasi. Artikel ini mengajukan Maqāṣid asy-Syarīʿah  sebagai kerangka etik normatif untuk menilai klaim keberlanjutan melampaui kepatuhan formal, melalui perhatian pada niat, kerusakan sistemik, dan keadilan distributif di sektor energi Indonesia. Penelitian menerapkan metode yuridis normatif melalui pendekatan konseptual dan filosofis, berbasis sumber sekunder berupa teks doktrinal hukum Islam, kajian kritis tata kelola keberlanjutan, serta literatur ekonomi hijau dan etika lingkungan. Analisis menggabungkan pemetaan induktif pola greenwashing by design dengan konstruksi deduktif model evaluasi berbasis maqāṣid, guna menunjukkan cara pengoperasian teori hukum Islam sebagai perangkat pengawasan. Hasil kajian memperlihatkan integrasi prinsip maqāṣid menggeser isu greenwashing dari persoalan teknis akurasi pelaporan menjadi problem etis pada desain tata kelola dan akuntabilitas. Kontribusi teoretis memposisikan ulang maqāṣid sebagai teori normatif kritis bagi tata kelola regulatif pada masyarakat mayoritas Muslim, sedangkan kontribusi praktis menawarkan kerangka evaluasi berbasis nilai untuk reformasi regulasi. Batasan studi terletak pada sifat konseptual dan ketiadaan verifikasi empiris, sehingga riset lanjutan perlu menguji implementasi kelembagaan dan mekanisme regulatif sektoral yang lebih operasional.

Full text article

Generated from XML file

References

Abdelgafar, Basma I. Public Policy beyond Traditional Jurisprudence: A Maqasid Approach. International Institute of Islamic Thought (IIIT), 2018.

Abdurrahman, Landy Trisna, Ulinnuha Saifullah, Ishlahu Darussalam, and Sitta A’la Arkham. “SDGs and Islamic Studies: Fiqh Muamalat, Sustainable Development, and Maqashid Asy-Syari’ah.” Az-Zarqa’: Jurnal Hukum Bisnis Islam 14, no. 2 (2022): 175–95. https://doi.org/10.14421/azzarqa.v14i2.2583.

Ahmad Shukor, Ahmad Shaifful Anuar, Addys Aldizar, Lutfi Alhazami, and Sigit Mareta. “Oceanic Economic Resilience Policy: An Islamic Perspective for Coastal Sustainability.” Jurnal Lemhannas RI 12, no. 3 (2024): 403–16. https://doi.org/10.55960/jlri.v12i3.986.

Al Fajri, Riyan. “Facing Legal Uncertainty: Challenges of Corporate Law and Environmental Regulation for Sustainable Business Practices in Indonesia.” Journal of Social Research 4, no. 4 (2025): 726–34. https://doi.org/10.55324/josr.v4i4.2503.

Al Munawar, Faishal Agil. “‘ABD AL-MAJĪD AL-NAJJĀR’S PERSPECTIVE ON MAQĀṢID AL-SHARĪ’AH.” JURIS (Jurnal Ilmiah Syariah) 20, no. 2 (2021): 209. https://doi.org/10.31958/juris.v20i2.4281.

Alwi, Muhammad, Muslimin Kara, M. Wahyuddin Abdullah, and Muhammad Fachrurrazy. “KONSEP MAQASID AS SYARIAH DALAM PERBANKAN SYARIAH.” Al-Amwal : Journal of Islamic Economic Law 7, no. 2 (2022): 56–80. https://doi.org/10.24256/alw.v7i2.3549.

Anisa, Lina Nur. “SUSTAINABLE FINANCE FROM THE PERSPECTIVE OF MAQASHID SYARIAH.” Al-Mabsut : Jurnal Studi Islam Dan Sosial 19, no. 1 (2025): 75–87. https://doi.org/10.56997/almabsut.v19i1.2070.

Anwar, Desy Rahmawati, Abdul Wahab, and Waris Waris. “Maqasid Syariah and Sustainable Development: Integrating Islamic Objectives into Economic Planning.” Formosa Journal of Multidisciplinary Research 4, no. 6 (2025): 2601–18. https://doi.org/10.55927/fjmr.v4i6.269.

Anwar, Desy Rahmawati, Abdul Wahab, and Waris Waris. “Maqasid Syariah and Sustainable Development: Integrating Islamic Objectives into Economic Planning.” Formosa Journal of Multidisciplinary Research 4, no. 6 (2025): 2601–18. https://doi.org/10.55927/fjmr.v4i6.269.

Auda, Jasser. “A Maqasidi Approach to Contemporary Application of The Shari‘ah.” INTELLECTUAL DISCOURSE 19, no. 2 (2011).

Baskoro, Aji. ESG DAN TATA KELOLA HILIRISASI CRITICAL MINERALS: MAMPUKAH INFRASTRUKTUR HUKUM INDONESIA MENJAMIN KEBERLANJUTAN DAN KEADILAN? | Baskoro | Jurnal Rechts Vinding: Media Pembinaan Hukum Nasional. May 15, 2025. http://dx.doi.org/10.33331/rechtsvinding.v14i1.2069.

Bose, Satyajit. “Evolution of ESG Reporting Frameworks.” In Values at Work, edited by Daniel C. Esty and Todd Cort. Springer International Publishing, 2020. https://doi.org/10.1007/978-3-030-55613-6_2.

Güney, Necmeddin. “Maqāsid Al-Sharī‘a in Islamic Finance: A Critical Analysis of Modern Discourses.” Religions 15, no. 1 (2024): 114. https://doi.org/10.3390/rel15010114.

Habibullah, Mohammad, Abdullah Al Faruque, Md. Omar Faruque, and Md Atiullah. “Islamic Economic Framework for the Exercise of Islamic Financial Activities: Its Conformity with Maqasid Shari`ah.” AL-BURHĀN: JOURNAL OF QURʾĀN AND SUNNAH STUDIES 7, no. 1 (2023): 81–92. https://doi.org/10.31436/alburhn.v7i1.300.

Haq, M Ashraf Al, and Norazlina Abd Wahab. “The Maqasid Al Shariah and the Sustainability Paradigm: Literature Review and Proposed Mutual Framework for Asnaf Development.” Journal of Accounting and Finance in Emerging Economies 5, no. 2 (2019): 179–96. https://doi.org/10.26710/jafee.v5i2.854.

Harahap, Burhanudin, Tastaftiyan Risfandy, and Inas Nurfadia Futri. “Islamic Law, Islamic Finance, and Sustainable Development Goals: A Systematic Literature Review.” Sustainability 15, no. 8 (2023): 6626. https://doi.org/10.3390/su15086626.

Hassan, Sara. “Greenwashing in ESG: Identifying and Addressing False Claims of Sustainability.” Journal of Business and Strategic Management 9, no. 8 (2024): 90–105. https://doi.org/10.47941/jbsm.2390.

Idris, Bani, Muhammad Toha Hasan, and Firdan Fadlan Sidik. “Indonesia’s Carbon Trade Odyssey: An Analysis of Maqashid Sharia in Balancing Environmental and Economic Compromises.” Az-Zarqa’: Jurnal Hukum Bisnis Islam 15, no. 2 (2023): 191–215. https://doi.org/10.14421/azzarqa.v15i2.3228.

Iskandar, Azwar, and Khaerul Aqbar. “Green Economy Indonesia Dalam Perspektif Maqashid Syari’ah.” Al-Mashrafiyah: Jurnal Ekonomi, Keuangan, Dan Perbankan Syariah 3, no. 2 (2019): 83. https://doi.org/10.24252/al-mashrafiyah.v3i2.9576.

Karimullah, Suud Sarim. “Reflections on Human-Nature Relations: A Critical Review in Islamic Humanities.” Jurnal Adabiyah 23, no. 2 (2023): 189–206. https://doi.org/10.24252/jad.v23i2a5.

Klongrua, Silanee, Khairil Umuri, and Muftahuddin Muftahuddin. “Maqasid Al-Shariah and Environmental Sustainability: An Islamic Economic Perspective.” International Journal of Kita Kreatif 2, no. 1 (2025). https://doi.org/10.24815/ijkk.v2i1.44790.

Laylatul Istiqomah, May. “Rekonstruksi Hukum Ekonomi Syariah Dalam Perspektif Maqashid Al-Shari’ah.” Jurnal Pustaka Cendekia Hukum Dan Ilmu Sosial 3, no. 1 (2025): 1–9. https://doi.org/10.70292/pchukumsosial.v3i1.125.

Lubis, Sopian, and Wiwin Windiana. “SYNERGY OF GREEN FINANCE AND MAQASID SHARIA: A STUDY OF THE DEVELOPMENT OF GREEN SUKUK IN INDONESIA.” Khatulistiwa 14, no. 2 (2024): 147–62. https://doi.org/10.24260/khatulistiwa.v14i2.2382.

Mergaliyev, Arman, Mehmet Asutay, Alija Avdukic, and Yusuf Karbhari. “Higher Ethical Objective (Maqasid al-Shari’ah) Augmented Framework for Islamic Banks: Assessing Ethical Performance and Exploring Its Determinants.” Journal of Business Ethics 170, no. 4 (2021): 797–834.

Miswanto, and Muhammad Tasrif. “MAQASHID SHARIA’S ANALYSIS OF THE GREEN ECONOMY CONCEPT IN INDONESIA.” Jurnal Syarikah : Jurnal Ekonomi Islam 10, no. 1 (2024): 70–80. https://doi.org/10.30997/jsei.v10i1.10976.

Mohamad Saleh, Mohamad Saifudin, Ali Mehellou, and Bahiyah Omar. “Maqāṣid Al-Sharī’ah as Goal Framing for Sustainable Behaviours: A Conceptual Framework.” Intellectual Discourse 31, no. 1 (2023). https://doi.org/10.31436/id.v31i1.1805.

Mohd Zain, Fahru Azwa, Siti Fariha Muhamad, Hamdy Abdullah, Sheikh Ahmad Faiz Sheikh Ahmad Tajuddin, and Wan Amalina Wan Abdullah. “Integrating Environmental, Social and Governance (ESG) Principles with Maqasid al-Shariah: A Blueprint for Sustainable Takaful Operations.” International Journal of Islamic and Middle Eastern Finance and Management 17, no. 3 (2024): 461–84. https://doi.org/10.1108/IMEFM-11-2023-0422.

Mohd Zain, Fahru Azwa, Siti Fariha Muhamad, Hamdy Abdullah, Sheikh Ahmad Faiz Sheikh Ahmad Tajuddin, and Wan Amalina Wan Abdullah. “Integrating Environmental, Social and Governance (ESG) Principles with Maqasid al-Shariah: A Blueprint for Sustainable Takaful Operations.” International Journal of Islamic and Middle Eastern Finance and Management, Emerald Publishing Limited, 2024.

Moshood, Taofeeq Durojaye, James Olabode Bamidele Rotimi, and Funmilayo Ebun Rotimi. Combating Greenwashing of Construction Products: A Critical Analysis of Environmental Product Declarations. Preprints, 2024.

Pahala, Lamlam. “Analysis of the Theory of Al-Maqāṣid Asy-Syarī’ah in Sustainable Economic Development.” Global Journal of Economic and Finance Research 01, no. 05 (2024). https://doi.org/10.55677/GJEFR/01-2024-Vol01E5.

Putri Dwi Wahyuni and Mohammad Mukhtasar Syamsuddin. “Epistemological Foundation of ESG-Based Investment in Indonesia’s Economic Policy.” International Journal of Economics and Management Sciences 1, no. 4 (2024): 388–400. https://doi.org/10.61132/ijems.v1i4.371.

Putri, I Gusti Ayu Made Asri Dwija, Kartika Sari, Henny Triyana Hasibuan, et al. “Institutional Dynamics and Environmental Disclosures: Insights from Indonesia’s Energy Sector.” Pacific Accounting Review 37, no. 4 (2025): 592–615. https://doi.org/10.1108/PAR-11-2024-0309.

Raharjo, Budi, and Methodius Kossay. “Analisis Hukum Terhadap Klaim Greenwashing Akuntabilitas Hukum Di Era Branding Berkelanjutan.” Hakim: Jurnal Ilmu Hukum Dan Sosial 3, no. 2 (2025): 1104–14. https://doi.org/10.51903/sp9aj288.

Rofiq, Nur, and M Zidny Nafi Hasbi. “A New Paradigm In Economy About Maqashid Al-Sharia Theory: Reformulation Of Ibn-Asyur.” PAMALI: Pattimura Magister Law Review 2, no. 1 (2022): 77. https://doi.org/10.47268/pamali.v2i1.817.

Rohmatulloh, Rohmatulloh, Aan Hasanah, Lalan Sahlani, and M. Tajudin Zuhri. “Energy-Saving Triangle: Internalizing Islamic Ethical Values on Energy Saving in Integrative Learning.” Religions 14, no. 10 (2023): 1284. https://doi.org/10.3390/rel14101284.

Salsabila, Amalia, Muhammad Iqbal Fasa, Suharto Suharto, and Adib Fachri. “Trends in Green Banking as Productive Financing in Realizing Sustainable Development.” Az-Zarqa’: Jurnal Hukum Bisnis Islam 14, no. 2 (2022): 151–74. https://doi.org/10.14421/azzarqa.v14i2.2562.

Santoso, Rudi, Mirah Satria Alamsyah, and Rita Zaharah. “Legal Implications of Constitutional Court Decision Number 65/Puu-Xxi/2023 Concerning Implementation of Campaigns in Places of Worship and Education.” Constitutional Law Society, ahead of print, 2023. https://doi.org/10.36448/cls.v2i2.57.

Sargsyan, Hovhannes, Annisatul Maulidiyyah Rahman, Alice Björnsson, Yusuf Ndong Nzé, and Ana Sofía Del Carmen. “Beyond Anthropocentrism: Reinterpreting Islamic Legal Ethics through Transspecies Rights and Ecological Jurisprudence.” Indonesian Journal of Islamic Law 8, no. 1 (2025): 92–112. https://doi.org/10.35719/9vrysr32.

Shalhoob, Hebah. “ESG Disclosure and Financial Performance: Survey Evidence from Accounting and Islamic Finance.” Sustainability 17, no. 4 (2025): 1582. https://doi.org/10.3390/su17041582.

Siciliano, Giuseppina, Linda Wallbott, Frauke Urban, Anh Nguyen Dang, and Markus Lederer. “Low‐carbon Energy, Sustainable Development, and Justice: Towards a Just Energy Transition for the Society and the Environment.” Sustainable Development 29, no. 6 (2021): 1049–61. https://doi.org/10.1002/sd.2193.

Subli, Mohamad, Darussalam Syamsuddin, Abdul Rauf Muhammad Amin, Wahida Rahim, and Sulaiman Sulaiman. “Green Investment in Contemporary Islamic Perspective: A Maqasid al-Syari‘ah Analysis of the Mining Industry in Morowali.” MILRev: Metro Islamic Law Review 4, no. 1 (2025): 156–83. https://doi.org/10.32332/milrev.v4i1.10269.

Sumarno, Theresia B., Parulian Sihotang, and Widhyawan Prawiraatmadja. “Exploring Indonesia’s Energy Policy Failures through the JUST Framework.” Energy Policy 164 (May 2022): 112914. https://doi.org/10.1016/j.enpol.2022.112914.

Tahir, Tarmizi, and Syeikh Hasan Abdel Hamid. “Maqasid Al-Syari’ah Transformation in Law Implementation for Humanity.” International Journal Ihya’ ’Ulum al-Din 26, no. 1 (2024): 119–31. https://doi.org/10.21580/ihya.26.1.20248.

Tumpa, Roksana Jahan, and Leila Naeni. “Improving Decision-Making and Stakeholder Engagement at Project Governance Using Digital Technology for Sustainable Infrastructure Projects.” Smart and Sustainable Built Environment 14, no. 4 (2025): 1292–329. https://doi.org/10.1108/SASBE-10-2024-0451.

Wibisono, Hafidz, Jon Lovett, Maulidia Savira Chairani, and Siti Suryani. “The Ideational Impacts of Indonesia’s Renewable Energy Project Failures.” Energy for Sustainable Development 83 (December 2024): 101587. https://doi.org/10.1016/j.esd.2024.101587.

Wiguna, Bangkit Adhi, and Gloria Evanda Fiko. “Post-Political Governance and the Return of the Political: PROPER-Rated Geothermal Enterprise, Environmental Problems, and Civil Resistance in Dieng Plateau, Central Java.” JKAP (Jurnal Kebijakan Dan Administrasi Publik) 28, no. 1 (2024): 1. https://doi.org/10.22146/jkap.88506.

Yusuf, Niken Yulian, Maskun Maskun, Arfin Hamid, Ratnawati Ratnawati, and Muhammad Mutawalli Mukhlis. “Community Rights Protection as a Pillar of Suistainable Mining in INdonesia : A Review of Government and CSR Roles From Environmental Law and Islamic Environmental Jurisprudence.” Jurnal Ilmiah Mizani: Wacana Hukum, Ekonomi Dan Keagamaan 12, no. 2 (2025): 41. https://doi.org/10.29300/mzn.v12i2.8359.

Authors

Aji Baskoro
baskoro.ajibas@gmail.com (Primary Contact)
Baskoro, A. (2025). Maqasid al-Shari’ah for Green Business Oversight: Addressing Greenwashing by Design in Indonesia’s Energy Transition. Az-Zarqa’: Jurnal Hukum Bisnis Islam, 17(2), 214-239. https://doi.org/10.14421/az-zarqa.v17.i2.4621

Article Details

How to Cite

Baskoro, A. (2025). Maqasid al-Shari’ah for Green Business Oversight: Addressing Greenwashing by Design in Indonesia’s Energy Transition. Az-Zarqa’: Jurnal Hukum Bisnis Islam, 17(2), 214-239. https://doi.org/10.14421/az-zarqa.v17.i2.4621