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Green Finance in Indonesia s Low Carbon Sustainable Development

Author

Listed:
  • Sigit Setiawan

    (Fiscal Policy Agency, MoF Republic of Indonesia.)

  • Poppy Ismalina

    (Department of Economics, Gadjah Mada University, Indonesia.)

  • R Nurhidajat

    (Fiscal Policy Agency, MoF Republic of Indonesia.)

  • Cornelius Tjahjaprijadi

    (Fiscal Policy Agency, MoF Republic of Indonesia.)

  • Yusuf Munandar

    (Fiscal Policy Agency, MoF Republic of Indonesia.)

Abstract

This paper primarily discusses how Indonesia - as a developing country and one of the world s top 10 greenhouse gas (GHG) contributors has committed and struggled to attain low carbon development goals, which are crucial for its national development sustainability and the world campaign on climate change impact mitigation and adaptation. Indonesia's awareness of the impact of disasters due to climate change on the sustainability of its national development brings forth commitments at the international level and robust programs at the national level in reducing GHG emissions. These programs have delivered historical achievements, especially in the forestry sector and the energy sector, the two most critical sectors of national GHG emission. Discussions continue on the conceivable green finance support options varying from the banking sector until the facilitation of ASEAN regional cooperation on low carbon sustainable development. The awareness of stakeholders to prevent potentially excessive burdens on Indonesian public green finance has delivered continuing responses to stimulate private green finance to contribute more for low carbon sustainable development. The study concludes with the exploration of current challenges to address in order to boost the Indonesian dominant banking sector contribution up to the next level.

Suggested Citation

  • Sigit Setiawan & Poppy Ismalina & R Nurhidajat & Cornelius Tjahjaprijadi & Yusuf Munandar, 2021. "Green Finance in Indonesia s Low Carbon Sustainable Development," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 11(5), pages 191-203.
    • Handle: RePEc:eco:journ2:2021-05-23
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    References listed on IDEAS

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    Cited by:

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    2. Harin Tiawon & Miar Miar, 2023. "The Role of Renewable Energy Production, Energy Efficiency and Green Finance in Achieving Sustainable Economic Development: Evidence from Indonesia," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 13(1), pages 250-260, January.
    3. Li, Jiaqi & Kim, Ja Ryong & Adegbite, Emmanuel, 2026. "The impact of green credit guidelines on green lending and environmental outcomes: Evidence from Chinese banks," Ecological Economics, Elsevier, vol. 242(C).
    4. Pradeep Kumar Dadabada, 2026. "Green Innovation in Emerging Market Banking and Finance: A Comprehensive Framework," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 4651-4675, April.

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    Keywords

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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