The Government's Green Bonds Are Selling Well, Bought By Millennials, Sri Mulyani: This Is Exciting

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Finance Minister Sri Mulyani reported that the green bond financing instrument released by the government received a positive response from the public. In her speech, the Minister of Finance said that most of the investors came from young people.

“In our domestic green bond investor profile, there is a millennial investor segment, which in this case has increased significantly, with 50 percent of investors being millennials. This is certainly encouraging,” she said in a webinar of Indonesia's SDGs Annual Conference 2021 which was broadcast virtually, Tuesday, November 23.

According to the Minister of Finance, the green bond instrument is the government's effort to diversify funding sources that are in line with environmental principles and have a sustainable concept.

"We will continue to perfect this financing instrument in order to create education and understanding for corporations who will also be able to issue this green bond," she said.

To note, Indonesia is one of the leading countries that issue green financing instruments, especially sukuk. Since it was first released in 2018, this instrument has managed to absorb investor funds of up to tens of trillions of rupiah.

There are two types of instruments that have been released by the government. First, global green sukuk with a value of Rp3.5 billion US dollars or equivalent to Rp49.7 trillion (exchange rate of Rp14,202). Second, retail green sukuk with a domestic market share of Rp6.88 trillion. On that occasion the state treasurer also revealed the government's plan to release a new financing instrument by highlighting the marine potential or the blue economy.

"The president has even asked us to look at the marine aspect so that the blue economy becomes very important," she said.