Green Economy Development in Indonesia: A Systematic Review of Policy Gaps and the Potential of Islamic Environmental Ethics (2020–2025)

Abstrak

Indonesia’s pursuit of a green economy has intensified in recent years as part of its commitment to global climate mitigation and sustainable development. Despite ambitious national targets such as the 23% renewable energy mix by 2025 and strengthened Nationally Determined Contributions progress remains slower than expected, indicating persistent gaps between policy formulation and practical implementation. At the same time, Islamic financial mechanisms, particularly Green Sukuk, Waqf-based environmental programs, and Sharia-compliant green financing models, have emerged as promising instruments to support the transition. This study employs a Systematic Literature Review (SLR) to examine Indonesia’s green economy development from 2020 to 2025, with specific attention to policy gaps, implementation barriers, and the potential contribution of Islamic environmental ethics grounded in Maqashid al-Shariah. A total of 412 records were identified through Scopus, Google Scholar, and Publish or Perish searches. After applying inclusion exclusion criteria and evaluating methodological rigor using the CASP checklist, 32 high-quality articles were included in the final synthesis. The results reveal four overarching themes: (1) persistent inconsistencies between regulatory goals and implementation outcomes; (2) structural, institutional, and socio-technical barriers that hinder green policy execution; (3) underutilized opportunities in Islamic green finance that could strengthen climate-oriented investments; and (4) the relevance of Islamic environmental ethics as a normative foundation capable of guiding more holistic, justice-oriented sustainability strategies. This review emphasizes the importance of integrating policy coherence, financial innovation, and ethical frameworks to support Indonesia’s future green transformation