Integrating Islamic Social Finance and Environmental Conservation: Evidence from Bogor and Mojokerto Waqf Forests

Abstract

This study examines the management practices of waqf forests in Bogor and Mojokerto, Indonesia, to identify their strategic resources and assess the potential integration of green sukuk as a complementary financing mechanism to support sustainable Islamic social finance. Drawing on the Resource-Based View (RBV) as an analytical lens, the study explores how religiously embedded assets and community-based resources are mobilized to support environmental conservation and local development. A qualitative case study approach was employed, involving in-depth interviews with waqf managers, community members, and volunteers, complemented by field observations and analysis of institutional documents. The data were analyzed using thematic analysis guided by RBV concepts. The findings indicate that waqf forests possess distinctive resources, including permanently endowed land, Shariah legitimacy, and strong social capital. These resources are translated into conservation, educational, and productive activities, such as waqf forest schools, ecotourism initiatives, and small-scale enterprises. However, limited financing, institutional capacity constraints, and discontinuous external support hinder long-term sustainability. The study finds that green sukuk has the potential to function as a complementary resource by addressing financing gaps, enhancing institutional legitimacy, and aligning waqf forest initiatives with the Sustainable Development Goals (SDGs). By extending the application of RBV to the context of Islamic social finance, this research highlights how faith-based environmental initiatives can be strengthened through innovative linkages with green financing instruments in Indonesia.