Islamic Finance and Blue–Green Indicators amid Policy Uncertainty in Indonesia

Abstract

This article reassesses how Islamic financial-sector depth, general policy uncertainty and governance relate to Indonesia’s blue–green indicators, focusing on the measurement and small-sample identification constraints of an annual national series. The source study covers 2010–2023 (14 annual observations) and combines renewable energy, carbon intensity and marine protection with banking, sukuk and governance measures. We examine construct alignment, index reproducibility, interaction hierarchy and the arithmetic of the published ordinary least squares tables. The conventional adjusted R² implied by the reported regressors is −0.014 for the additive model and 0.307 for the interacted model, rather than 0.44 and 0.72. With three residual degrees of freedom, conventional two-sided tests do not support the two reported interaction coefficients at the 5 per cent level. The policy-uncertainty proxy does not isolate trade-war shocks, while aggregate Islamic-finance depth does not establish sustainability-directed financing. The analysis distinguishes an economically meaningful conditional-association question from a causal financing-resilience claim and establishes a parsimonious, auditable framework for future blue–green evidence in an archipelagic economy.