The Role Of Green Sukuk Issuance In Indonesia In Efforts To Reduce Greenhouse Gas Emissions A Qualitative Approach

Rozalinda; Ranjani  Glory; Gusti Dirga  Alfakhri Putra; Ghita  Yosanti

doi:10.64757/alqanatir.2025.3405/1266

Authors

Rozalinda Lecturer
Ranjani Glory Lecturer
Gusti Dirga Alfakhri Putra Lecturer
Ghita Yosanti Lecturer

DOI:

https://doi.org/10.64757/alqanatir.2025.3405/1266

Keywords:

Green Sukuk, Greenhouse, Gas, Emissions, Indonesia

Abstract

This article examines the potential for Green Sukuk issuance in Indonesia in the context of efforts to reduce greenhouse gas emissions. This research uses a qualitative approach. Data was collected through interviews with the Head of the Sharia Conformity Analysis and SBSN Legal Documents Section at the Ministry of Finance of the Republic of Indonesia, by tracing data sources from annual reports and the official websites of the Ministry of Finance and the Financial Services Authority regarding the issuance of Green Sukuk. Data were analyzed qualitatively using content analysis and thematic analysis. The research results confirm that the issuance of Green Sukuk in Indonesia plays a role in financing sustainable projects, making a significant contribution to reducing greenhouse gas emissions. Green Sukuk issuance in Indonesia during the 2018-2022 period reflects positive progress in financing sustainable projects. Significant funds raised from the issuance of Green Sukuk are allocated for refinancing previous year projects and financing new projects in the year of issuance. The sustainable transportation sector dominates the use of Green Sukuk funds, followed by climate change resilience, and sustainable water and wastewater management. These findings reflect a positive evolution since the development of the Green Bond and Green Sukuk framework in 2017. Green Sukuk has become an effective financial instrument in supporting sustainable development and climate change mitigation in Indonesia.

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Author Biographies

Rozalinda, Lecturer

Faculty of Islamic Economics and Business, Universitas Islam Negeri Imam Bonjol Padang, West Sumatra, 25171, Indonesia

Ranjani Glory, Lecturer

Faculty of Islamic Economics and Business, Universitas Islam Negeri Imam Bonjol Padang, West Sumatra, 25171, Indonesia

Gusti Dirga Alfakhri Putra, Lecturer

Faculty of Islamic Economics and Business, Universitas Islam Negeri Imam Bonjol Padang, West Sumatra, 25171, Indonesia

Ghita Yosanti, Lecturer

Faculty of Islamic Economics and Business, Universitas Islam Negeri Imam Bonjol Padang, West Sumatra, 25171, Indonesia

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