Farah Amalia, Nur Kholis

Indonesia’s environmental challenges, such as vulnerability to climate-related disasters and increasing GHG emissions, demand urgent policy and financial solutions. This study examines the strategic role of Green Sukuk ST007 in supporting Indonesia’s green economy and its alignment with the United Nations' Sustainable Development Goals (SDGs). Using qualitative-descriptive analysis based on government and institutional data, the study explores the allocation of ST007 across 13 projects in four eligible sectors. Results show that ST007 raised IDR 5.42 trillion from 16,992 investors, achieving a GHG emission reduction of approximately 1.12 million tons, equivalent to planting 39,843 trees and supplying oxygen for over 34 million people. The majority of funds (61%) were directed to climate resilience projects. This confirms ST007’s strategic contribution to Indonesia’s sustainable financing agenda. In addition to its environmental impact, the findings highlight the policy relevance of expanding Green Sukuk as a key instrument for climate financing, particularly in strengthening national low-carbon strategies and enhancing stakeholder participation. However, further research is required to verify project-level impacts and long-term socio-economic outcomes.