Syariah-Based Capital Budgeting for Sustainable Micro-Investments: A Thematic Case from Indonesia’s Food Sector

Abstract

This study aims to analyze the application of capital budgeting and investment decision making in the peanut onion business in Indonesia. As well as its implications for achieving the Sustainable Development Goals (SDGs) from a sharia perspective. The peanut onion business as a micro-business has a strategic role in improving the economic welfare of local communities. By integrating sharia principles, such as the prohibition of usury, justice, and blessings. As well as considering social and environmental aspects, investment management is expected to support sustainable development. This research method uses a qualitative method with case studies and document analysis related to investment practices and sharia principles. The results of the study show that the application of capital budgeting that prioritizes sustainable aspects and sharia principles can increase investment efficiency and have a positive impact on poverty alleviation, environmental conservation, and community welfare according to the SDGs targets. The study recommends strengthening the capacity of business actors through sharia financial management training and access to sharia financing to support the development of sustainable and ethical peanut onion businesses.