October 3, 2024, Indonesia - Indonesia has showcased its capability to issue global green sukuk, an innovative sharia-compliant financial instrument, aimed at combating climate change during The 8th Annual Islamic Finance Conference.
The Green Sukuk, launched in 2018, has raised $1.25 billion, with a 5-year tenor and a 3.75% yield. Investors include 32% from the Islamic market, 25% from Asia, 15% from the EU, 18% from the US, and 10% from Indonesia.
As the first country to issue global green sukuk, Indonesia uses these funds for sustainable projects such as renewable energy and reforestation.
Additionally, Indonesia issued the SDG's Sukuk Framework in 2021, raising $10 billion for sustainable projects and climate crisis management. The Cash Wakaf Link Sukuk, introduced in 2020, gathered $65 million to fund social infrastructure.
The government continues to issue retail sukuk to attract domestic investors, aligning with its vision to achieve high-income status by its centenary in 2045.