Aligning Maqasid al-Shariah and Sustainable Development Goals: A Multidimensional Welfare Analysis from South Sumatra, Indonesia
Article Sidebar
Main Article Content
Abstract
This study examines the alignment between Maqasid al-Shariah and the Sustainable Development Goals (SDGs) through a multidimensional welfare framework in South Sumatra, Indonesia during the 2020–2025 period. The study develops a sub-national Maqasid-based Welfare Index (MWI) by incorporating five dimensions: social welfare (Din), health (Nafs), education (Aql), human development (Nasl), and economic welfare (Mal), proxied respectively by social indicators, life expectancy, mean years of schooling, Human Development Index (HDI), and poverty rate. Using panel data across districts/cities, this research applies a composite index approach combined with panel regression analysis to examine the determinants and dynamics of multidimensional welfare. The results reveal a significant welfare decline during the COVID-19 pandemic in 2021, followed by a gradual recovery throughout 2022–2025. The regression findings indicate that health and education exert positive and significant effects on Maqasid-based welfare, while poverty negatively affects welfare performance. The findings demonstrate that the integration of Maqasid al-Shariah and SDGs provides a broader welfare perspective beyond conventional economic indicators. Despite improvements in human development, regional disparities and poverty remain major challenges for inclusive welfare achievement. This study contributes empirically by operationalizing a Maqasid-based Welfare Index (MWI) at the sub-national level and offers policy implications for strengthening human capital investment, social protection, and sustainable regional development strategies in Indonesia.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Alam, M. M., Said, J., & Hassan, R. (2021). Performance of Islamic microfinance institutions and maqasid al-shariah: A conceptual framework. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-xx-xxxx
Alkire, S., & Foster, J. (2016). Dimensional and distributional contributions to multidimensional poverty measurement. Oxford Development Studies, 44(2), 1–17.
Anto, M. B., Sanrego, Y. D., & Taufiq, M. (2020). An analysis of maqasid al-shariah-based performance measurement: Evidence from Islamic banking in Indonesia. Journal of Islamic Accounting and Business Research, 11(2), 354–370.
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
Ascarya. (2021). The role of Islamic social finance in achieving Sustainable Development Goals (SDGs) in Indonesia. International Journal of Islamic Economics and Finance Studies, 7(1), 1–20.
Ascarya. (2022). Islamic social finance and economic development. Journal of Islamic Economics.
Ascarya, & Yumanita, D. (2018). Islamic social finance and its role in achieving SDGs in Indonesia. Journal of Islamic Monetary Economics and Finance, 4(2), 1–24. https://doi.org/10.21098/jimf.v4i2.1070
Aziz, A., et al. (2024). SDGs and maqasid shariah principles: Synergies for global prosperity. Journal of Lifestyle and SDGs Review, 4(2). https://doi.org/10.47172/2965-730X.SDGsReview.v4.n02.pe03572
Baltagi, B. H. (2021). Econometric analysis of panel data (6th ed.). Springer. https://doi.org/10.1007/978-3-030-53953-5
Barro, R. J., & Sala-i-Martin, X. (2017). Economic growth (3rd ed.). MIT Press.
Chapra, M. U. (2016). The future of economics: An Islamic perspective. Islamic Foundation.
Dusuki, A. W., & Abdullah, N. I. (2017). Maqasid al-shariah, maslahah, and corporate social responsibility. American Journal of Islamic Social Sciences, 24(1), 25–45. https://doi.org/10.35632/ajis.v24i1.415
Effendi, S. (2026). Integrating maqashid shariah in SDGs: A quantitative framework. International Journal of Economics.
Elbanna, M., et al. (2025). A bibliometric analysis of SDGs through maqasid shariah lens. QiST Journal.
Etika, C., et al. (2025). Digital transformation in Islamic social finance. Jurnal Tabarru.
Harahap, B., Risfandy, T., & Futri, I. (2023). Islamic law, Islamic finance, and SDGs: A systematic literature review. Sustainability, 15(8), 6626. https://doi.org/10.3390/su15086626
Isman, A. F., & Kaltsum, U. (2022). The relevance of SDGs in maqasid al-shariah dimensions. Journal of Islamic Economics, Management, and Business (JIEMB).
Kamali, M. H. (2019). Maqasid al-shariah made simple. International Institute of Islamic Thought (IIIT).
Khan, M. F. (2019). SDGs and Islamic economics: Convergence and divergence. International Journal of Islamic Economics and Finance Studies, 5(3), 1–15. https://doi.org/10.25272/ijisef.657012
Mohammed, M. O., Razak, D. A., & Taib, F. M. (2015). The performance measures of Islamic banking based on maqasid framework. Humanomics, 31(3), 1–20. https://doi.org/10.1108/H-03-2015-0011
OECD. (2020). How’s life? 2020: Measuring well-being. OECD Publishing. https://doi.org/10.1787/9870c393-en
Prasojo, L., Syarifah, L., & Muhfiatun. (2024). Harmonizing SDGs and maqasid shariah. Journal of Islamic Finance.
Rahawati, F. T., et al. (2025). Sinergi maqasid syariah dan SDGs. JEMBA Journal.
Rohim, A. N., & Yetty, F. (2025). Contribution of Islamic economy in achieving SDGs. RISFE Journal.
Siregar, F. A. (2024). Islamic social finance and SDGs: Bibliometric analysis. Ekonomika Syariah Journal.
Sumner, A., Hoy, C., & Ortiz-Juarez, E. (2020). Estimates of the impact of COVID-19 on global poverty. WIDER Working Paper 2020/43.
United Nations. (2015). Transforming our world: The 2030 agenda for sustainable development. United Nations.
Wooldridge, J. M. (2020). Introductory econometrics: A modern approach (7th ed.). Cengage Learning.
World Bank. (2022). Indonesia economic prospects: Boosting the recovery. World Bank. https://www.worldbank.org/en/country/indonesia/publication/indonesia-economic-prospects