Halal Economy and Local Governance: Sharia Management for Sustainable Development

Abstract

Local governments play a crucial role in promoting sustainable development through policies that integrate economic, social, and environmental dimensions. This paper examines the relationship between the halal economy and local governance, focusing on how Sharia-based management practices can contribute to sustainable development at the subnational level. Using a mixed-methods approach, the study combines quantitative data from regional economic indicators with qualitative evidence from case studies in Indonesia, particularly Aceh, where Islamic principles are embedded in local governance. The paper develops an integrative framework to evaluate how halal economic activities—such as halal finance, halal tourism, and halal food industries interact with governance mechanisms to promote social welfare and environmental responsibility. The analysis highlights both opportunities and challenges in aligning Sharia management with the Sustainable Development Goals (SDGs), providing policymakers with insights for developing ethical and resilient pathways to local development.