Investor Presentaiton
Indonesia's Green Initiatives: Financing Green Projects
Development of Indonesia's Green Projects Financing
The Republic of Indonesia has issued two sovereign global Green
Sukuk, consecutively in February 2018 and 2019, with the total
amount of USD 2 Billion
2019 Issuance
USD 750 million
(or IDR 11.25 trillion)
2018 Issuance
USD 1.25 billion
(or IDR 16.75 trillion)
29% allocated to Green investors*
29% allocated to Green investors*
Each issuance comprised of:
BHINNIKA
Indonesia has continued to develop the Green market through the introduction of the first Retail
Green Sukuk in the world (Savings Retail Sukuk, ST006) in November 2019. The ST006 is an
investment instrument based on Sharia principles issued and sold to individual Indonesian citizens in
the domestic market with an online platform. Allocation and impact of the Retail Green Sukuk is not
included in the Green Sukuk Issuance Allocation and Impact Report issued in February 2020
Allocation by Sector
2018 Issuance
2019 Issuance
772.8062086
82%
51% refinancing existing projects
and 49% financing new projects
Allocation by Sector
ll
Renewable energy
Resilience to Climate Change for Highly
Vulnerable Areas and Sectors/Disaster Risk
Reduction
Energy efficiency
B
Waste and Waste to Energy Management
Managed by 3
Ministries:
41.262.073
Sustainable Transport
89%
Ministry of
Transportation
Ministry of Energy and
Mineral Resources
Ministry of Public
Works and Housing
200,710,713
27%
380480724
48%
2096130
81217195
42775
1196
906
102519377
896
0250866
73107360 1796
5%
7%
2019 Issuance
mitigation
adaptation
+
Allocation by Activity
11%
83%
2018 Issuance
mitigation
adaptation
Note: Information extracted from Green Sukuk Issuance Allocation and Impact Report (February 2020), and subject to change and assurance from PwC.
Projects were financed in Indonesian Rupiahs and the currency exchange rate based on the State Budget Assumption for 2019 budget year of IDR 15,000 per USD was used to re-calculate the spent amount on each project
*These statistics are based on the HSBC's in house assessment of investor ESG/SRI appetite and sophistication, which is developed from Market Intelligence and our own understanding from client conversations. A green classification is assigned to
investors taking into account whether they have Green/SRI fund and/or strategy, whether they are signatories of a variety of SRI initiatives and with awareness to their broader activities/public announcements in the SRI market. Classifications evolve over
time
17%
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