Based on the Ministry of Finance (Kemenkeu) report titled *Green Sukuk Allocation and Impact Report May 2021*, Indonesia has cumulatively raised US$2.75 billion in green sukuk bonds from 2018 to 2022. This is equivalent to Rp42.83 trillion, assuming an exchange rate of Rp15,575/US$.
Green sukuk are Sharia-compliant investments used to finance projects with positive environmental impacts. Funds from these green sukuk have been used to finance various environmental projects, including renewable energy, energy efficiency, sustainable transportation, waste management, and climate resilience.
Based on its activities, the cumulative allocation of green sukuk distribution in Indonesia is predominantly for mitigation, accounting for 57%.
Meanwhile, the cumulative allocation of green sukuk distribution in Indonesia for adaptation is 43%.
According to the report, the Indonesian government has acknowledged the potential adverse impacts of climate change and has strengthened national development policies and related institutions.
This includes the establishment of the National Action Plan for Greenhouse Gas Emission Reduction (RAN-GRK) and the National Action Plan for Climate Change Adaptation (RAN-API), published in 2011 and 2014 respectively, as well as the Indonesia Biodiversity Strategy and Action Plan (IBSAP) 2015-2020.
“This document comprises a series of targets, programs, and projects related to climate mitigation and adaptation, as well as biodiversity conservation—which have also been mainstreamed into the National Medium-Term Development Plan (RPJMN) 2015-2019,” the report stated.
In the RPJMN, climate change is positioned as one of the cross-sectoral issues addressed through improvements in infrastructure and facilities, food security, ecosystem resilience and its supporting systems, natural resources and the environment, and the health sector. These policies, strategies, and targets have been improved and further mainstreamed in the current RPJMN 2020-2024.