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Integrating Waqf-Based Forests and Carbon Trading: Opportunities, Challenges, and Strategies in Indonesia Ali, Khalifah Muhamad; Tanjung, Hendri; Sukmana, Raditya; Jannah, Miftahul; Mustaqimah, Mu'minah
Jurnal Sylva Lestari Vol. 13 No. 2 (2025): May
Publisher : Department of Forestry, Faculty of Agriculture, University of Lampung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23960/jsl.v13i2.1111

Abstract

Carbon trading is pivotal in mitigating greenhouse gas emissions. However, the contribution of waqf-based forests—forests established on endowed land—remains underexplored. This research addresses this gap by investigating the potential, schemes, stakeholders, opportunities, challenges, and strategies for waqf-based forests in carbon trading. Through a literature review, in-depth interviews, and field observations, the study found that waqf-based forests can contribute to carbon trading and raise Islamic awareness. The findings identify two potential schemes for selling carbon credits from waqf-based forests: the Ministry of Environment and Forestry’s carbon exchange and direct business-to-business (B2B) transactions. Due to the sustainability of waqf land and its added ecological, economic, social, and Islamic values, waqf-based forests can produce high-quality carbon credits and provide an inclusive and sustainable green economy. However, challenges such as suboptimal land area, lack of technical knowledge, and the absence of a carbon trading fatwa need to be addressed. Proposed strategies to overcome these challenges include document bundling, collaborations with Corporate Social Responsibility (CSR) programs, direct B2B sales, and selecting plants that enhance carbon economic value. This research offers in-depth insights into the potential of waqf-based forests as significant players in carbon trading, emphasizing their inherent sustainability values. Keywords: carbon trading, green economy, high-quality carbon credit, waqf-based forest
NATIONAL WAQF-BASED FOREST INDEX: TOWARDS ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY EMPOWERMENT THROUGH SHARIA FINANCIAL INNOVATION Ali, Khalifah Muhamad; Tanjung, Hendri; Sukmana, Raditya; Sari, Indah Fresma; Jannah, Miftahul; Mustaqimah, Mu'minah
Jurnal Ekonomi dan Bisnis Islam (Journal of Islamic Economics and Business) Vol. 11 No. 2 (2025): JULY - DECEMBER 2025
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jebis.v11i2.72676

Abstract

Currently, the existing concepts of waqf management and forest management are still separated. It creates an opportunity to develop the concept of waqf-based forest management. This study aims to develop a National Waqf-based Forest Index (NWFI) as a standardized tool to measure the performance of waqf-based forest management practices. This research is a quantitative study that began with preliminary research and was followed by interviews with seven experts using the Analytical Hierarchy Process (AHP). Based on preliminary research, the index comprises five dimensions: institution (with three aspects), process (with three aspects), system (with three aspects), outcome (with twelve aspects), and impact (with three aspects). It is found in the AHP analysis that the institution and process dimension is considered the most important aspect for waqf-based forests, with an importance score of 0.227, followed by the system and impact dimension (0.197), and the outcome dimension (0.152). Based on the consistency rate, all experts' assessments were consistent. Regarding rater agreement, the outcome dimension and several indicators related to the environment and social facilities achieved the highest level of agreement (W ~0.400–0.500), whereas other dimensions and aspects, such as expert opinions, showed significant dispersion. In conclusion, this waqf-based forest index has the potential to strengthen the role of Islamic finance in supporting sustainable projects by providing the basic practical tool for the waqf-based forest nazhir and policy-makers to assess waqf-based forest management and construct future good nazhir governance. Further research and pilot projects are important to evaluate its effectiveness in measuring waqf-based forest management practically.