Blue Sukuk and Sustainable Finance: Driving the Future of a Marine Based Economy in Maluku

Abstract

The global blue economy, projected to reach US$2.5–3 trillion by 2030, faces a critical financing gap for Sustainable Development Goal (SDG) 14 amid escalating marine degradation, overfishing, and climate vulnerability, particularly in archipelagic regions such as Maluku Province, Indonesia, where approximately 92% of the territory consists of marine waters. Indonesia's pioneering sovereign blue bond issuance in 2023 (US$150 million) and the emerging concept of blue sukuk underscore the potential of Islamic sustainable finance. However, their application at the regional level remains underexplored, despite Maluku's rich marine biodiversity, productive fisheries, and persistent poverty among coastal communities. The research employs a qualitative systematic literature review of more than 50 peer-reviewed journal articles, policy documents, and grey literature published between 2021 and 2025, sourced from Scopus, Google Scholar, and official repositories such as Bappenas and the Indonesia Climate Change Trust Fund (ICCTF). Thematic analysis using NVivo identified four core themes: (1) ijarah–waqf structures enabling a hypothetical IDR 500 billion financing scheme for marine protected areas and sustainable aquaculture; (2) regulatory and infrastructure barriers, including gaps in financial and sustainability metrics established by the Financial Services Authority (OJK); (3) alignment with the objectives of Maqasid al-Shariah through blue sukuk linked to Cash Waqf Linked Sukuk (CWLS) to enhance coastal welfare; and (4) a phased regional implementation model integrating blockchain-based monitoring systems and fatwas issued by the National Sharia Council Indonesian Ulema Council (DSN-MUI). The findings highlight the novelty of blue sukuk as an innovative financing instrument for a regenerative marine economy. The study contributes theoretically through the development of a "Blue Maqasid Index" and offers a practical, scalable blueprint for sustainable blue finance in small island and archipelagic regions. Future research is recommended to include empirical validation and comparative cross-regional studies in order to strengthen the global achievement of SDG 14 (Life Below Water).