Adopting Sustainable Finance Regulation for Islamic Financial Institutions in Indonesia

Hayu Susilo Prabowo

2017

Abstract

The interaction between people and environment are very vital because functioning ecosystem services are important resources for the people. The economy is a subsystem of human society, which is also a subsystem of the life on earth and its ecosystem. The issue of environmental change has shifted from a peripheral concern of scientists and environmentalists to being a central issue in the global policy-making. To ensure global long-term financial stability and economic development, financial institutions need to significantly change their performance to promote more responsible and sustainable business practices. The Financial Services Authority of Indonesia has unveiled a roadmap, which sets forth the end goal of sustainable finance in Indonesia by the financial services industry and determines the benchmark for improvements in sustainable finance. This paper explains the complementarities of Islamic worldview and sustainable financing policies. Under the term Environment, Social and Governance, the ethical theory of Islamic economics focuses only on the social and governance, the environment under sustainable finance have not been fully considered. Therefore, the adoption of sustainable financing concept in Islamic financial services institutions will enrich Islamic economics to attain Islam rahmatan lil ‘alamin (Islam is a blessing and mercy to the entire universe).

Paper Citation

in Harvard Style

Prabowo H. (2017). Adopting Sustainable Finance Regulation for Islamic Financial Institutions in Indonesia.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 157-162. DOI: 10.5220/0007078601570162

in Bibtex Style

@conference{iciebp17,
author={Hayu Susilo Prabowo},
title={Adopting Sustainable Finance Regulation for Islamic Financial Institutions in Indonesia},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={157-162},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007078601570162},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Adopting Sustainable Finance Regulation for Islamic Financial Institutions in Indonesia
SN - 978-989-758-315-5
AU - Prabowo H.
PY - 2017
SP - 157
EP - 162
DO - 10.5220/0007078601570162