Issue

Vol 41 No 3 (2026): September

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Submitted
May 12, 2024
Accepted
Jun 11, 2026
Published
Sep 28, 2026
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Islamic Social Finance and Environmental Sustainability: Waqf Funding Intentions in the Forestry Sector

https://doi.org/10.22146/jieb.v41i3.13068
Firdan Thoriq Faza
Department of Development Economics, Faculty of Economics, Universitas Tidar, Magelang, 56166, Indonesia
https://orcid.org/0000-0002-5089-4140
Lu'liyatul Mutmainah
Department of Economics, Faculty of Economics and Business, Univeritas Islam Internasional Indonesia, Depok 16416, Indonesia and Department of Halal Quality Management, Faculty of Islamic Studies, Universitas Siliwangi, Tasikmalaya, 330634, Indonesia
https://orcid.org/0000-0002-6009-9538

Journal of Indonesian Economy and Business, Vol 41 No 3 (2026): September

Abstract

Introduction/Main Objectives: This study analyzes the factors influencing people's intention to waqf in the forestry sector. Background Problems: High deforestation rates in Indonesia cause severe economic and social impacts as communities lose essential natural resources. Given Indonesia's large, geographically diverse Muslim population, Islamic social finance offers potential solutions through green waqf implemented via waqf forests. Novelty: This research provides empirical evidence on reaching new waqf donors (waqif) for the forestry sector across various regions in Indonesia. Research Methods: Adopting Value-Based Theory (VBT), the Theory of Planned Behavior (TPB), and green knowledge variables, PLS-SEM was used to test seven hypotheses. A purposive sample of 205 respondents completed an online survey. The sample spans all regions—primarily East Java, Central Java, Yogyakarta, West Java, Banten, Sumatra, and Borneo, alongside Jakarta and Eastern Indonesia—representing diverse ages, occupations, and waqf contribution levels. Finding/Results: Environmental awareness and environmental concern significantly influence attitudes toward waqf in the forestry sector. Additionally, green knowledge and perceived behavioral control positively and significantly impact waqf intention in the forestry sector. Conclusion: Findings offer practical insights for stakeholders promoting forestry waqf. Central authorities, including the government, can use these insights to foster creative strategies supporting green waqf for sustainable forest ecosystems and development. Ultimately, the green waqf movement can heighten public environmental awareness, particularly regarding forest ecosystem maintenance in Indonesia. Future research could utilize longitudinal or regional comparative designs.

Keywords

waqf intentions waqf forest green dimensions waqf behavior
Faza, F. T., & Mutmainah, L. (2026). Islamic Social Finance and Environmental Sustainability: Waqf Funding Intentions in the Forestry Sector. Journal of Indonesian Economy and Business, 41(3), 469 –. https://doi.org/10.22146/jieb.v41i3.13068
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Firdan Thoriq Faza, Department of Development Economics, Faculty of Economics, Universitas Tidar, Magelang, 56166, Indonesia

Firdan Thoriq Faza is a lecturer at the Department of Development Economics, Faculty of Economics, Universitas Tidar, since 2025. He earned Bachelor’s degree in Management at the Faculty of Economics and Business, Universitas Diponegoro, and Master’s degree in Islamic Economics at the Faculty of Economics and Business, Universitas Airlangga. His research interests lie in the areas of Islamic monetary economics and finance.  

Lu'liyatul Mutmainah, Department of Economics, Faculty of Economics and Business, Univeritas Islam Internasional Indonesia, Depok 16416, Indonesia and Department of Halal Quality Management, Faculty of Islamic Studies, Universitas Siliwangi, Tasikmalaya, 330634, Indonesia

Lu’liyatul Mutmainah is a lecturer in the Halal Quality Management and Islamic Economics Study Program at the Faculty of Islamic Studies, Universitas Siliwangi, since 2022. Additionally, she is a researcher at the Waqf Center for Indonesian Development and Studies (WaCIDS). She earned her bachelor's degree in Islamic Banking from the Faculty of Islamic Economics and Business at UIN Sunan Kalijaga Yogyakarta and pursued her master's degree—supported by an LPDP scholarship—specializing in Islamic Economics and Finance within the Middle East and Islamic Studies (KTTI) program at Universitas Indonesia. Currently, she is a doctoral student in Economics at Universitas Islam Internasional Indonesia (UIII). Several of her research projects have been presented at international conferences—winning "Best Paper" and "Best Presenter" awards—and have been published in reputable international journals and as book chapters.

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