Empowering Coastal Communities Through Integrated Islamic Microfinance for Sustainable Ecotourism in East Java

Indonesia's coastal regions hold vast economic and ecological potential but face major challenges, including limited financial access and low community capacity. This chapter explores how Integrated Islamic Finance—emphasizing profit-sharing (mudharabah) and charitable funds (tabarru')—can empower coastal communities and support sustainable ecotourism. Using a qualitative approach supported by Fishbone Diagram and Force Field Analysis, the study identifies key barriers such as weak management, limited education, and insufficient institutional support. It proposes a model integrating Islamic finance principles with ecotourism development to foster inclusive growth and environmental sustainability. The chapter offers strategic insights for policymakers, academics, and practitioners seeking to transform coastal areas into resilient and economically empowered communities.