<![CDATA[This research analyzes environmental degradation in Indonesia's manufacturing hubs, which often overlook the principle of natural balance (mizan). The objective is to examine the influence of industrial agglomeration, externalities, and environmental investment on the Environmental Quality Index (EQI) from an Islamic Economics perspective. The method employed is panel data analysis across 10 manufacturing provinces for the 2018-2024 period. Based on statistical tests (Chow and Hausman tests), the Fixed Effect Model (FEM) was selected as the best estimation model for this study. Results indicate that industrial agglomeration and externalities have a positive and significant effect on environmental quality, while environmental investment has a positive but non-significant effect. Simultaneously, all three variables significantly influence the EQI. These findings emphasize the importance of internalizing Hifdzul Biah values in industrial policy to prevent environmental destruction (fasad).]]>
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