Darmawan, Arif and Ahmad, Dwi (2022) Development of an Environmental Insurance Program based on Islamic Values in the Palm Oil Industry in Indonesia for Community Welfare. Iltizam Journal of Shariah Economic Research, 6 (1). pp. 145-159. ISSN 2598-2540

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Economic development is synonymous with growth rates where the relationship between development and environmental sustainability is apparent. Allah SWT blesses Indonesia with abundant natural resources. One of Indonesia's potentials is palm oil or CPO (Crude Palm Oil). The CPO industry is one of the biggest contributors to Indonesia's foreign exchange. Palm oil can rely on around 13.50% of nonoil and gas exports, covering around 3.50% of Indonesia's Gross Domestic Product (GDP). Until the end of 2020, the value of CPO exports in Indonesia reached 27,326.1 tons from various destination countries. However, in this perspective of industrial climate, environmental issues surrounding the CPO industry continue to be voiced from various circles. As a result of such a large demand, it has an impact on land clearing for oil palm production. Real action from the government and palm oil companies is needed to overcome this. Synergy is needed between the government through policies and the role of oil palm companies through production mechanisms and programs that support the environment, such as the implementation of environmental insurance programs. This study uses a qualitative analysis method with a qualitative descriptive analysis approach. This qualitative analysis, it provides benefits to ensure production in the crude palm oil industry in facing the challenges of environmental issues. The environmental insurance program has two insurance policy applications: Pollutant Payment Principles and Instrument Payments. However, this environmental insurance program has not been implemented with the right system. Therefore, the actualization of Islamic values is expected to help optimize the program.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Fakultas Ekonomi dan Bisnis (FEB) > Prodi Ekonomi Pembangunan
Depositing User: Arif Darmawan
Date Deposited: 15 Dec 2022 08:01
Last Modified: 15 Dec 2022 08:01
URI: http://repository.lppm.unila.ac.id/id/eprint/47234

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