Implementation of Green Sukuk in Financing Renewable Energy Projects in Indonesia

Abstract

This study aims to examine the implementation of Green Sukuk in financing renewable energy projects in Indonesia. The research method used is descriptive qualitative with a documentation approach to government regulations and policies, reports on green sukuk in 2023-2025, and recent scientific studies. The results of this study indicate that the implementation of Green Sukuk for renewable energy projects supports the achievement of the national energy mix target of 23% by 2025. Including renewable energy innovation projects with the impact of clean energy transfer and increasing local capacity and energy independence, Bioenergy and Biomass which have an impact on reducing environmental pollution, Solar Energy has an impact on reducing CO2 emissions aligns with Indonesia's commitment under the Paris Agreement to independently reduce greenhouse gas emissions by 29% by 2030 and electricity cost efficiency, energy conversion programs in government buildings with an impact on energy efficiency and reduced operational costs. However, in its implementation there are still challenges, namely expensive and complicated issuance procedures, audits and impact reporting are not optimal, private issuers have difficulty meeting project criteria & scale and other challenges. Overcoming these obstacles requires integrated coordination between regulators, public, market players, policy incentives, and adaptive global standards.