In March 2018, the Government of Indonesia. through the Ministry of Finance, issued the very first sovereign green sukuk (Islamic Bond), reaching an amount of $1.25 billion. The five-year issuance has successfully reached a broad range of investors including conventional, Islamic and green investors. The infographic report outlines Indonesia's journey from reviewing the country's budgeting system and cllimate finance tracking tools to Indonesia's Green Bond and Sukuk intiative.  

The Green Bond and Green Sukuk Initiative aims to support Indonesia’s goal in its GHG emissions reduction. The Sukuk is an innovative financial instrument to support Indonesia’s commitment in GHG emissions reduction based on Islamic Law principles. The issuance is guided by the Green Bond and Green Sukuk Framework, reviewed by international independent reviewer CICERO and awarded medium green shade.

All of the proceeds of the $1.25bn Green Sukuk will exclusively go to selected ‘eligible green projects’ based on the Green Bond and Green Sukuk Framework. The issuance attracted investors around the globe (32% Islamic market, 25% Asia, 15% EU, 18% USA and 10% Indonesia).