In Indonesia, Poverty-Environment Action (PEA) project continues to provide support in 2020 on the government’s Green Sukuk initiatives, including the development of a second impact report that was published in early March 2020. The report aims to deliver transparency and accountability on the use of proceeds of the issuance.
The Green Sukuk is a successful collaborative national effort to address climate change. It utilizes the results of the climate budget tagging mechanism and channels investments towards and across green sectors with the most climate change impacts in accordance with our Green Bond and Green Sukuk Framework. The appreciation from investors for the Green Sukuk issuance in 2018 has encouraged the Government to make further commitments to sustainable finance. In 2019, the sovereign green Sukuk was issued twice in the global institutional market and in the domestic retail market respectively.
This report is the second annual green Sukuk allocation and impact report, representing the government’s commitment to full transparency and accountability in the management and use of proceeds, reflecting a continued effort to align sectors towards green growth and maintain the government's commitment to creating a low-carbon, climate-resilient economy. It provides an overview of the projected environmental benefits, geographic location of green projects, case studies of featured projects, as well as impact measurement methodology.