2022 State Budget: Fiscal Policy and Structural Reform
Indonesia's Existing Green Bond and Sukuk Framework
Existing Green Bond and Sukuk Framework under which the Republic of Indonesia can Finance and Refinance
Selected Eligible Projects
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Use of proceeds
of Green Bond
and Green Sukuk
Project Evaluation
and Selection
Eligible Green
Projects must fall
into one of the
nine eligible
sectors
Review and approval
process by Ministry of
Finance and National
Development
Planning Agency
Project selection will
utilize the Climate
Budget Tagging (CBT)
mechanism
Management of Proceeds
Management - Ministry of Finance
The Green Bond and Green Sukuk
proceeds will be credited to a designated
account of relevant ministries for funding
exclusive projects as previously defined.
Allocation is managed by Ministry of
Finance
Line Ministries
The line ministries utilizing the
proceeds shall track, monitor and
report to Ministry of Finance, on the
environmental benefits of the Eligible
Green Projects
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Reporting
Ministry of Finance
will prepare and
publish a Green Bond
and Green Sukuk
annual report on the
list of projects,
amounts of proceeds
allocated to such
projects and
estimation of
beneficial impacts
The Framework has received a second opinion from the Centre for International Climate Research (CICERO) and is awarded
medium green shading, which allows the possibility of light, medium and dark green project types. This shade also shows that
eligible listed projects are representing the country ongoing efforts towards the long-term vision in carbon emission reduction
Source: Indonesia's Green Bond & Green Sukuk Framework
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