Failed Fuel Subsidies: A Review of Maqashid Syariah and SDG’s

Abstract

Fuel subsidies are often implemented by governments with the noble aim of protecting people's purchasing power and stimulating the economy. However, in practice these subsidies are often misdirected. The benefits are enjoyed more by the wealthy than by the poor, who should be the main priority. This study aims to analyze the problem of misdirected fuel subsidies through a dual perspective, namely Maqashid Syariah and Sustainable Development Goals. The method used in writing this research is qualitative with a literature review approach. The data was analyzed descriptively with reference to the core concept of Maqshid Syariah. Specifically, the five basic principles of protection: religion, life, intellect, lineage, and property. It also refers to relevant SDG’s principles such as Poverty Eradication, Affordable and Clean Energy, Inclusive Economic Growth, and Reduced Inequalities. The results of the study show that fuel subsidies that miss the mark are in fact, contrary to the spirit of Maqshid Syariah. Instead of protecting the property of the people fairly, this program creates wasteful state spending that is detrimental, benefits only an elite group, and widens the gap. Thus, it fails to achieve justice. Similarly, from an SDG’s perspective, this program
hinders the achievement of several goals, such as energy market distortion, transition to sustainable energy, and the allocation of funds that should be allocated to more targeted poverty alleviation and education programs. This study emphasizes that the conventional fuel subsidy program, which is not targeted appropriately, is not in line with the principles of justice and universal benefit that form the main foundation of Maqashid Syariah and SDG’s.