The Governance of Digital Yield in Indonesian Sugar Partnerships: Integrating Procedural Justice with Contemporary Islamic Economic Law

Abstract

This study investigates the governance of digital yield systems in Indonesian sugarcane partnership schemes by integrating procedural justice theory with contemporary Islamic economic law. It analyses the structural limitations of conventional yield determination practices, evaluates the transformative role of digital technologies in enhancing fairness and accountability, and formulates a normative governance framework grounded in procedural justice and Islamic legal principles. Adopting a qualitative socio legal approach, the research combines doctrinal analysis of regulatory frameworks with empirical data derived from in depth interviews, field observations, and stakeholder engagement in major sugarcane producing regions. Findings reveal that information asymmetry, limited farmer participation, opaque measurement procedures, and weak supervisory oversight are frequently characteristic of conventional yield determination mechanisms. These deficiencies foster distrust and distributive imbalances within partnership arrangements. The introduction of digital yield systems—marked by data driven measurement, traceable production records, and real time monitoring—substantially improves procedural transparency and institutional accountability. Digitalisation curtails opportunistic behaviour, strengthens farmers’ access to information, and promotes more balanced decision-making. From the perspective of contemporary Islamic economic law, such governance mechanisms resonate with the principles of ‘adl (justice), amanah (trustworthiness), and shafāfiyyah (transparency), while advancing the maqāṣid oriented protection of property (ḥifẓ al māl). The study contributes to theory by bridging procedural justice and Islamic economic jurisprudence in the context of digital agricultural transformation. Practically, it offers a policy relevant model for equitable, technology driven partnership governance that aligns innovation with ethical and normative legal values in agrarian economies.