Environmental Accounting in Responding to the Deforestation Crisis in Indonesia: A Review from the Perspective of Maqashid Shariah and Sustainability Reporting
Nur Hidayah, Syarifuddin and Darwis Said

Hasanuddin University

Abstract

This study investigates environmental accounting practices in response to the ongoing deforestation crisis in Indonesia, with a particular focus on palm oil companies listed on the Indonesia Stock Exchange. Employing a qualitative approach under the spiritualism paradigm, the research integrates the Maqashid Shariah framework with the principles of sustainability reporting to explore how corporate environmental intentions are constructed and represented. Data sources include the companies^ 2023 sustainability and annual reports. The findings indicate that although companies have formally adopted sustainability reporting standards, the internalization of spiritual principles specifically the protection of life (hifz al-nafs) and the preservation of the environment (hifz al-bi^ah) is scarcely evident in corporate practices. Much of the disclosure appears driven by regulatory compliance and corporate image management rather than a genuine commitment to sustainability as a core spiritual mission. This study highlights the need for a deeper integration of Maqashid Shariah values into environmental accounting practices to foster more authentic sustainability initiatives within Indonesia^s palm oil sector, and to contribute meaningfully to biodiversity preservation for Indonesia^s future.

Keywords: Environmental Accounting, Deforestation, Maqashid Shariah, Sustainability Reporting, Corporate Spirituality, Palm Oil Industry.

Topic: Sustainability accounting