CLIMATE RESILIENCE AND COFFEE FARMERS’ WELFARE IN CENTRAL ACEH, INDONESIA: ADAPTATION STRATEGIES FROM THE MAQĀṢID AL-SHARĪʿAH PERSPECTIVE

Abstract

Purpose — This study aims to analyse the impact of climate change on the economic welfare of coffee farmers in Central Aceh, Indonesia and identify maqāṣid al-Sharīʿah-based adaptation strategies to improve the sustainability of the coffee sector. Design/Methodology/Approach — Unlike other studies, a quantitative approach with an explanatory design was employed in this research. A total of 600 coffee farmers in Aceh Tengah district participated in answering the questionnaire. Data were analysed using Structural Equation Modelling (SEM) with R-Lavaan 0.6-19 and tested quantitatively to assess how adaptation practices align with maqāṣid al-Sharīʿah principles. Findings — Climate change significantly impacts the decline in the economic well-being of coffee farmers in Central Aceh, resulting in an average income decrease of 16.8 per cent, with the dominant indicators being changes in air humidity and rainfall patterns. Meanwhile, implementing a maqāṣid al-Sharīʿah-based adaptation strategy contributed more effectively, resulting in a 36 per cent increase in key well-being indicators. This is achieved through: (i) Islamic financial schemes (productive zakat, qarḍ ḥasan, and green ṣukūk) for capital access; (ii) health services for farmers, especially in facing health risks due to climate change; and (iii) training of the younger generation. Originality/Value — This is the first study to quantitatively examine the integration of maqāṣid al-Sharīʿah in the context of climate resilience and coffee farmers’ welfare, and provide recommendations based on Islamic and local value systems. Research Limitations/Implications — The study is limited to small-scale farmers in Central Aceh, Indonesia and does not explicitly accommodate the principles of ḥifẓ al-biʾah (protecting the environment). Practical Implications — The study highlights increased adaptive capacity of coffee farmers towards climate change through: (i) the integration of Islamic financial instruments; (ii) strengthening rural health services; (iii) multi-stakeholder collaboration for market infrastructure development; and (iv) climate data-driven policies.