Waste Bank-Socio-Economic Empowerment Nexus in Indonesia: The Stance of Maqasid al-Shariʻah

Miftahorrozi Miftahorrozi, Shabeer Khan and Muhammad Bhatti
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Miftahorrozi Miftahorrozi: Department of Islamic Economics and Finance, Istanbul Sabahattin Zaim University, Istanbul 34303, Turkey
Shabeer Khan: Department of Islamic Economics and Finance, Sakarya University, Serdivan 54050, Turkey

JRFM, 2022, vol. 15, issue 7, 1-23

Abstract: With the rapid increase of waste throughout the country, the government of Indonesia has enacted regulations targeting waste reduction using religious sentiment. This is employed in Malang City’s “ Waste Bank of Malang ” (WBM). This study aims to analyze the impact of waste banks on socio-economic progress, and to assess their efficacy in accomplishing this objective from the Maqasid al-Shariʻah perspective. The research employs a descriptive qualitative approach and uses both primary and secondary data sources. This study found that the operation of WBM contributes considerably to the community’s economic and social well-being. Likewise, the WBM has successfully managed waste by reducing, reusing, and recycling it as it is collected from customers. The customers receive financial incentives from the waste bank in return for providing recycled waste to a specialized firm under a profit-sharing (PLS) contract. As per the findings of the study, the rationale of the waste bank aligns with the Maqasid al-Shariʻah and the Islamic finance contract of PLS arrangements.

Keywords: waste; Waste Bank of Malang; socio-economic empowerment; Maqasid al-Shari?ah (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
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