1 Implementation of Islamic Economics in Indonesia By Developing Green Economy through Renewable Energy Technologies Rachmawan Budiarto 1,2*) , Ahmad R. Wardhana 3) , Aishah Prastowo 4) 1) Centre for Energy Studies, Universitas Gadjah Mada Indonesia 2) Dept. Of Engineering Physics, Fac. of Engineering, Universitas Gadjah Mada 3) Magister of Technology for Sustainable Development, School of Post-Graduate Universitas Gadjah Mada 4) Osney Thermo-Fluids Laboratory, Department of Engineering Science, University of Oxford, United Kingdom *Corresponding author: rachmawan@ugm.ac.id Abstract Recent development trends in conventional economy have caused serious systematic problems. It is a violation towards the goal of the implementation of economic activities themselves. The intentions of economy are not only to protect the wealth (hifdzu-l-maal), but also to protect life (hifdzu-n-nafsi) and descendant (hifdzu-n-nasli). Therefore, it demands a fundamental correction. Green economy needs to be implemented as a part of Islamic economy to provide fundamental correction to conventional economy. Green economy emphasizes on three basic principles: 1) economic growth, 2) eco-efficiency, and 3) quality of economic growth. It is a paradigm that is able to protect the ecosystem in reaching economic growth to reduce prosperity gap. Utilization of various renewable energy technologies is one of the keys to successful implementation of green economy in Indonesia. This technology promises huge tangible and intangible benefits, e.g. providing green jobs, reducing CO 2 emissions, reducing the rate of coal exploration which thereby reducing complex problems related open coal mining, and enhancing the welfare of low-income people. These benefits show that the use of renewable energy helps fulfilling the targets of economic growth, eco-efficiency and quality of economic growth, which are in line with Islamic principles of economy. Keywords: Islamic economics, green economics, renewable energy 1. Maqashid Sharia (The Enactment Of Sharia) In addition to the nash of al-Qur`an and Sunnah, Islam has Maqashid Sharia as a reference, which is obatained from inductive study (istiqra') towards the texts of law, the laws derived from it, causes of law ('illat), and the wisdom of law. This inductive study leads to the conclusion that there are intention and purposes of the enactment of sharia to mankind, which are to achieve benefits (mashlahat, kemashlahatan) to the human being in the dunya (world) and akhirah (afterlife) (Muhajir, 2015). Mashlahat can be interpreted as the usefulness and advantages. The scholars agreed that the benefit in maqashid sharia should cover the five principal purposes, commonly referred as al-khamsah Kulliyat. Imam asy-Syatibi in al-Muwafaqat stated that the Five Principal Purpose are 1) hifdzu-d-din, to protect religion, 2) hifdzu-n-nafsi, to protect life, 3) hifdzu-l- 'aql, to protect mind, 4) hifdzu-l-maal, to protect wealth, and 5) hifdzu-n-nasli, to protect descendant (Muhajir, 2015, Sahroni and Karim, 2015).