<![CDATA[Introduction to The Problem Amid growing global momentum toward the Sustainable Development Goals (SDGs), Islamic financial institutions face intensifying pressure to anchor their operations within Sharia principles and corporate social responsibility frameworks. This alignment is theoretically synchronized; yet, in practice, the operational integration of SDGs and maqashid al-shari'ah (the objectives of Islamic law) within the banking sector remains structurally fragmented. This disconnect is particularly pronounced at the regional level, where localized economic policies often eclipse systemic sustainability mandates Purpose/Objective Study This study investigates the strategic nexus between Islamic banking operations and the realization of Sustainable Development Goals (SDGs) within the Special Region of Yogyakarta. Specifically, it evaluates the empirical efficacy of these institutions' contributions while critically identifying the systemic challenges that hinder their optimal performance. By addressing these operational bottlenecks, this research ultimately formulates a novel, maqashid-based strategic framework designed to fortify the sector's long-term role in fostering sustainable developmen Design/Methodology/Approach: Methodologically, this study adopts a qualitative design anchored in a document-based research approach. To ensure data triangulation and analytical depth, empirical materials were systematically harvested from multifaceted institutional outputs, including corporate annual and sustainability reports, regulatory framework papers, and strategic policy documents issued by the Financial Services Authority (OJK) and the National Committee for Islamic Economy and Finance (KNEKS). This internal corporate data is further complemented by publications from industry associations and peer-reviewed academic literature. Subsequently, the gathered qualitative data underwent a rigorous thematic content analysis, executed through a structured five-stage process: data familiarization, initial coding, theme development, conceptual review, and contextual interpretation. Findings: Empirical findings demonstrate that Islamic banking actively drives SDG acceleration through a multifaceted approach: scaling productive financing, expanding financial inclusion, bolstering Micro, Small, and Medium Enterprises (MSMEs), and mobilizing Islamic social finance instruments. Although these channels yield measurable benefits for poverty alleviation, inclusive economic growth, and social welfare, several operational bottlenecks persist. Specifically, the overall developmental efficacy is hindered by the superficial integration of sustainability indicators into institutional performance matrices, weak social impact assessment tools, and fragmented stakeholder cooperation. To resolve these issues, this study introduces a maqashid-based strategic framework that focuses on intensifying sustainability governance, hardcoding SDGs into financing policies, expanding multi-stakeholder networks, and advancing impact-measurement frameworks. By doing so, this research significantly enriches the existing literature, offering a functional framework that synthesizes SDGs with maqashid al-shari'ah within banking operations. Beyond its theoretical merits, the study provides strategic, actionable blueprints for regulators, policymakers, and corporate executives seeking to propel sustainable finance within the Islamic financial ecosystem.]]>
Copyrights © 2026
