Policy analysis of green bonds in Indonesia: Strategies for achieving sustainable development

Septinus Saa

Article ID: 6535
Vol 8, Issue 10, 2024

VIEWS - 146 (Abstract) 77 (PDF)

Abstract


The use of green bonds as a financial instrument to support sustainable development has become a major focus in Indonesia. However, the success of green bond implementation not only depends on market willingness but also on public policies that support and regulate its use. Therefore, this research aims to analyze the impact of public policies on the use of green bonds in Indonesia and how these policies can influence sustainable development. Public policy theory and sustainable development theory are the basis of analysis in this research. Public policy theory is used to understand how public policies are formed, implemented, and evaluated. Meanwhile, sustainable development theory is used to evaluate the impact of public policies on sustainable development. This research uses a qualitative approach with public policy analysis as the main method. Data are collected from various sources, including policy documents, government reports, and interviews with relevant stakeholders. The analysis results show that public policies have a significant impact on the use of green bonds in Indonesia. These policies cover various aspects, such as regulation, incentives, and government support. Additionally, these policies also influence how green bonds are used to support sustainable development in Indonesia. In order to promote sustainable development, it is important for the Indonesian government to continue developing and strengthening public policies that support the use of green bonds. This will help improve the success.


Keywords


sustainable development; public policy; green bonds

Full Text:

PDF


References


Adila, D., Nuryartono, N., & Oak, M. (2021). The Environmental Kuznets Curve for Deforestation in Indonesia. Economics and Finance in Indonesia, 67(2), 195. https://doi.org/10.47291/efi.v67i2.671

Agnes, M., & Koestoer, R. H. (2021). A Review on Sustainable Construction Regulations in Asian Countries: Savvy Insights for Indonesia. Jurnal Ilmu Lingkungan, 19(2), 459–464. https://doi.org/10.14710/jil.19.2.459-464

Alamgir, M., & Cheng, M.-C. (2023). Do Green Bonds Play a Role in Achieving Sustainability? Sustainability, 15(13), 10177. https://doi.org/10.3390/su151310177

Andi Wirawan, D., & Febriana Sari, I. (2023). Green Bond: Financing Alternative for UCO Based Biodiesel Industry. Jejak, 16(2), 415-431.

Araujo, L., & Mason, K. (2021). Markets, infrastructures and infrastructuring markets. AMS Review, 11(3–4), 240–251. https://doi.org/10.1007/s13162-021-00212-0

Astika, I. M., Bastari, O., & Suharyo, O. (2021). The Policy Of Environmental And Sustainable Development In Indonesia. International Journal of Progressive Sciences and Technologies (IJPSAT), 21(1), 267-276.

Bužinskė, J., & Stankevičienė, J. (2023). Analysis of Success Factors, Benefits, and Challenges of Issuing Green Bonds in Lithuania. Economies, 11(5), 143. https://doi.org/10.3390/economies11050143

ÇETİN, D. T. (2022). Green bonds in climate finance and forecasting of corporate green bond index value with artificial intelligence. Journal of Research in Business, 7(1), 138–157. https://doi.org/10.54452/jrb.992368

Davey, O., Putri, R. W., Tristiyanto, et al. (2023). Green bonds in indonesia: synergy between bank indonesia and otoritas jasa keuangan’s commitment. Journal of Central Banking Law and Institutions, 2(2), 199–220. https://doi.org/10.21098/jcli.v2i2.37

Dwivedy, D., & Sharma, M. (2023). Role of Green Bonds in Promoting Sustainability and their Effects on Public Policy. Journal of Law and Sustainable Development, 11(6), e1187. https://doi.org/10.55908/sdgs.v11i6.1186

Fitrah, R., & Soemitra, A. (2022). Green Sukuk For Sustainable Development Goals in Indonesia: A Literature Study. Jurnal Ilmiah Ekonomi Islam, 8(1), 231. https://doi.org/10.29040/jiei.v8i1.4591

Hadaś-Dyduch, M., Puszer, B., Czech, M., et al. (2022). Green Bonds as an Instrument for Financing Ecological Investments in the V4 Countries. Sustainability, 14(19), 12188. https://doi.org/10.3390/su141912188

Joyonegoro, A. W., Pamungkas, P., & Wibowo, D. S. (2023). Green bond and economic development: Evidence from Asian and European Countries. Sebelas Maret Business Review, 8(2), 129. https://doi.org/10.20961/smbr.v8i2.81315

Lichtenberger, A., Braga, J. P., & Semmler, W. (2022). Green Bonds for the Transition to a Low-Carbon Economy. Econometrics, 10(1), 11. https://doi.org/10.3390/econometrics10010011

Mariah, M. (2010). Indonesia: A Vulnerable Country in the Face of Climate Change. Global Majority E-Journal, 1(1), 46-56.

Nurika, G., Abidah, H. N., Wikurendra, E. A., et al. (2023). Microplastic Pollution in Green Shells in Aquatic Ecosystems: A Literature Review of Determinant Factors and Management. Jurnal kesehatan lingkungan, 15(4), 257–266. https://doi.org/10.20473/jkl.v15i4.2023.257-266

Osobajo, O. A., Otitoju, A., Otitoju, M. A., et al. (2020). The Impact of Energy Consumption and Economic Growth on Carbon Dioxide Emissions. Sustainability, 12(19), 7965. https://doi.org/10.3390/su12197965

Indriastuty, D. E., Pujianto, Antok Widiantoro, A. (2020). Policy Direction and Regulation of Green Bonds in Indonesia. Journal of Law, Policy and Globalization. https://doi.org/10.7176/jlpg/101-03

Pratanjana, N., & Simbolon, G. O. (2020). Issuance of green bond for sustainable development of peatlands. Sociae Polites, 21(2), 176–192. https://doi.org/10.33541/sp.v21i3.2259

Priyanta, M., & Zulkarnain, C. S. A. (2023). Sustainable Infrastructure Legal Policy in Indonesia: A National Strategic Project Approach for National Development. Sriwijaya Law Review, 7(1), 1. https://doi.org/10.28946/slrev.vol7.iss1.1108.pp1-18

Purnamawati, I. G. A. (2022). Sustainable Finance for Promoting Inclusive Growth. Jurnal Ilmiah Akuntansi, 6(2), 435. https://doi.org/10.23887/jia.v6i2.39208

Putra, F. A. A. (2023). ADB’s Role towards Energy Infrastructure Development: Case of Post-COVID-19 Pandemic in Indonesia. Global South Review, 3(1), 21. https://doi.org/10.22146/globalsouth.68419

Qisa’i, A. (2020). Sustainable Development Goals (SDGs) and Challenges of Policy Reform on Asset Recovery in Indonesia. Indonesian Journal of International Law, 17(2). https://doi.org/10.17304/ijil.vol17.2.785

Rahma Febriyanti, A., Tri Ratnasari, R., & Wardhana, A. K. (2022). The Effect of Economic Growth, Agricultural Land, and Trade Openness Moderated By Population Density on Deforestation in OIC Countries. Quantitative Economics and Management Studies, 3(2), 221–234. https://doi.org/10.35877/454ri.qems828

Rela, I. Z., Awang, A. H., Ramli, Z., et al. (2020). Effects of environmental corporate social responsibility on environmental well‐being perception and the mediation role of community resilience. Corporate Social Responsibility and Environmental Management, 27(5), 2176–2187. Portico. https://doi.org/10.1002/csr.1956

Septiana, E., & Dewi, G. (2022). Challenges and Opportunities for the Development of Green Sukuk in Indonesia. Research and Critics Institute.

Taghizadeh-Hesary, F., Zakari, A., Alvarado, R., et al. (2022). The green bond market and its use for energy efficiency finance in Africa. China Finance Review International, 12(2), 241–260. https://doi.org/10.1108/cfri-12-2021-0225

Tu, C. A., Thanh, N. C., Hieu, L. Q., et al. (2019). Sustainable development of the green bond market: Study case from Vietnam. Global and Stochastic Analysis, 6(2), 113-138.

Yunita, A., Biermann, F., Kim, R. E., et al. (2023). Making development legible to capital: The promise and limits of ‘innovative’ debt financing for the Sustainable Development Goals in Indonesia. Environment and Planning E: Nature and Space, 6(4), 2271–2294. https://doi.org/10.1177/25148486231159301




DOI: https://doi.org/10.24294/jipd.v8i10.6535

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Septinus Saa

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.