2022 State Budget and Fiscal Incentives Presentation
Indonesia's Green Initiatives: Financing Green Projects
Indonesia's Green Projects Financed by a Combination of Green Sukuk and Other Funding Sources
The Government of Indonesia has issued four sovereign global
green sukuk, consecutively in March 2018, February 2019 and June
2020 & 2021, with the total amount of USD 3.5 Billion
Global Green Sukuk Proceeds Allocation by Sector (in percentage)
83%
2021 Issuance
USD 750 million USD 750 million
2020 Issuance
2019 Issuance
USD 750 million
2018 Issuance
USD 1.25 billion
2018 2019 2020
In 2019-2020, the Government of Indonesia issued two retail green
sukuk in November 2019 and November 2020, with the total
amount of USD 490.1 million (IDR 6.86 trillion)
Use of Proceeds
2020 Global Green Sukuk Issuance
The 2020 Global Green Sukuk Issuance comprised of
0.08%
and 49% financing new projects
51% refinancing existing projects
7.21%
10.77%
49.51%
33.02%
Sustainable
Transport
Waste and Waste to
Energy Management
Resilience to Climate Change for
Highly Vulnerable Areas and
Sectors/ Disaster Risk Reduction
Project Owner
Financing of 2020
new projects
2
Refinancing of
Ministry of Public
2018 projects
Works and Housing
Ministry of
Transportation
Ministry of
Agriculture
Note:
55%
48%
9% 11%
7%
7%
27%
22%
8%
8%
11%
5%
Renewable
Energy
Energy
efficiency
Resilience to Climate
Change for Highly
Vulnerable Areas and
Sustainable
Transport
Sectors/Disaster Risk
Reduction
Waste and
Waste to
Energy
Management
Cumulative 2018, 2019, and 2020 Global Green Sukuk Issuance
Allocation by Sector
11%
5% Renewable Energy
Energy efficiency
41%:
Sustainable
Transport
Allocation by Activity
43%
Adaptation
0
36%
Resilience to Climate
Change for Highly
Vulnerable Areas and
Sectors/Disaster Risk
Reduction
6%
Waste and Waste to
Energy Management
57%
Mitigation
Information extracted from Green Sukuk Issuance Allocation and Impact Report (May 2021), which has obtained a limited assurance statement from EY
Projects were financed in Indonesian Rupiahs and the currency exchange rate is based on the State Budget Assumption for 2020 budget year of IDR 14,400 per USD.
Source: Ministry of Finance
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