Strengthening the Economic Climate through Digital Economy as A Green Economy Stimulus in the Global Polycrisis Era: An Islamic Perspective

Abstract

The global economy is changing due to a series of cumulative crises impacting many countries in the world, including Indonesia. Global recession issue is at the center of attention of many countries, as well as the rise of earth temperature. It is difficult to rely on conventional economic system, meanwhile digital economy, green economy, and Islamic economy have huge potential since Covid-19 pandemic. Indonesia, the most populous Muslim-majority country, with a population of over 270 million people, has seen tremendous growth in its digital economy as well as green economy in recent years. The study uses qualitative research methods as well as empirical research methods with descriptive analysis techniques. The main result of this study is that there are similarities between the concept of the principles in the green economy, digital economy, and that of the Islamic economy. Both the green economy and the digital economy must be introduced as part of the Islamic economy in order to bring about a fundamental modification of the traditional economy. The green economy emphasizes his three core principles (economic growth, eco-efficiency, and quality of economic growth). In addition, the digital economy refers to an economy in which digital computing technology is used for economic activities. We can start from the small act such as using digital economy to boost green economy to eradicate the carbon emission. From an Islamic point of view, the purpose of economics is not only to protect wealth (hifdzu-l-maal), but also to protect life (hifdzu-n-nafsi) and descendants (hifdzu-n-nasli). Since its huge potential, Indonesia should increase digital economy, green economy, and Islamic economy in order to advance economic resilience amids global polycrisis in the post Covid-19 pandemic era. Indonesia can lead the world in decarbonization, especially with the government's commitment to reach net zero by 2060 or sooner. By achieving the goal, Indonesia would have USD 100-125 billion in potential economic value-add from green economy opportunities by 2030. As such, it’s highly imperative that every leader in this world considers whether their business has the right tools to maximize this opportunity. From literature review, we know that the green economy and digital economy are consistent with Islamic spirit, philosophy, and economics respectively. From an Islamic perspective, Maqashid al-Sharia values emphasize human well-being in terms of spiritual, physiological, intellectual, and economic. Therefore, the Islamic world today is shown to play an important role in strengthening the economic climate, especially when it comes to combating climate change, through digital economy as a green economy stimulus in the global polycrisis era.