ISLAMICS PRINCIPLE VERSUS GREEN MICROFINANCE

  • Lucky Nugroho Prastowo Trisakti University
Keywords: Islamic Principle, Environmental Concern, Microfinance, low income people, Legitimacy

Abstract

The purpose of this literature review is to find out the link Islamic principles based on the Qur’an, and hadith that in line with the green microfinance activities. The scope of this literature review is divided into four main sections: (1) Is Islamic perspective on economic activities has concern with the environmental issues?, ,(2) Why microfinance has an important role to implementing green microfinance activities?,  (3) What's the link between Islamic principles and green microfinance activities, (4) Who has responsibilities on the implementation of green microfinance activities?. Based on Islamic perspective, the people can run their business as long as they didn’t destroy environmental. The conservation of environmental very important to support the sustainability of human life, it's reflected in The Qur’an and Hadith as the supreme sources of Islamic law. Furthermore, Islamic finance has a strong engagement with the microfinance activities, because the main clients of microfinance are low income people, and the one of microfinance objectives is related to poverty alleviation. Furthermore, the majority clients of microfinance are poor people that also as the contributor of environmental destruction. Related to this condition, appropriate law enforcement from the government who has the legitimacy to force microfinance for implementing environmental conservation activities.

Author Biography

Lucky Nugroho Prastowo, Trisakti University
Accounting

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Published
2015-12-26