This study aims to develop a preliminary conceptual framework that integrates environmental, social and governance (ESG) principles with Sharia compliance in the financing of solicited public–private partnership (PPP) infrastructure projects in Indonesia. The study addresses the growing need for financing models that are sustainable, accountable and ethically grounded.
A three-stage qualitative document review was conducted using Indonesian PPP regulatory documents, Ministry of Finance ESG frameworks for infrastructure projects and literature on Sharia compliance in PPPs. Thematic analysis was applied to identify intersections, complementarities and divergences across these domains.
ESG requirements and Sharia compliance share mutually reinforcing principles that can be systematically integrated across the PPP lifecycle. ESG provides global standards for sustainability, governance and risk management, while Sharia compliance contributes ethical safeguards aligned with the Maqasid Sharia. Their combined application enhances project legitimacy, social acceptance and long-term resilience.
The study focuses on solicited PPPs and constitutes a conceptual exploration rather than a fully empirically validated model. Future research should test the framework through pilot projects, multi-case studies and stakeholder-engaged evaluations.
The study offers a novel conceptual linkage between ESG requirements and Sharia compliance within PPP infrastructure in Indonesia, addressing a gap in the existing literature where these frameworks are usually treated independently.
