doi: 10.18178/joebm.2026.14.4.958
Green Finance and Renewable Energy Growth: A Case Study of Green Sukuk Implementation in Indonesia
Muhammad Ilham Firmansyah *
,
Tiara
- Department of Economic Education, Universitas Jember, Jember, Indonesia
- Manuscript received July 21, 2026
- accepted October 12, 2026
- published October 27, 2026
Abstract
Transition to sustainable development has increased the role of green finance as the key instrument to support the renewable energy production and usage. As the pioneer of Green Sukuk, Indonesia has mobilized at least USD 6 billion since the first year of issuance 2018 to fund the green and sustainable national scale projects. This study aims to analyze the gap between issuance of Green Sukuk toward renewable energy funding in Indonesia during 2018–2023. The method of descriptive gap analysis is applied, combined analysis trend of renewable energy growth and Green Sukuk proceeds issuance in Indonesia across the period of 2018–2023. The results showed that there is a gap in targeting RUEN’s renewable energy goal is only increased from 10.3% in 2018 to 14.06% in the end of 2023, which still in below target 23% in the year of 2025. The study concludes that implementation of Green Sukuk in Indonesia as the innovation tools and financial credibility, but not too effective to escalate the growth of renewable energy. Recommendation of policies include: aligning regulations across institutions, strengthening renewable energy project pipelines, broadening market participation, and enhancing transparency on green fund allocation.
Keywords
- green finance
- green Sukuk
- renewable energy
- sustainable development
How to Cite
Muhammad Ilham Firmansyah and Tiara, "Green Finance and Renewable Energy Growth: A Case Study of Green Sukuk Implementation in Indonesia," Journal of Economics, Business and Management, vol. 14, no. 4, pp. 284-290, 2026. https://doi.org/10.18178/joebm.2026.14.4.958
Copyright & License
Copyright © 2026 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).