Journal of Islamic Economy
Vol. 2 No. 2 (2025): JULY-JOIE

The Role of Green Fiscal Policy in Supporting Green Governance and Green Economic Development

Loso Judijanto (IPOSS Jakarta)
Dzulfikri Azis Muthalib (Universitas Muhammadiyah Kendari)



Article Info

Publish Date
29 Jul 2025

Abstract

This article examines the strategic role of green fiscal policy in supporting governance and green economic development in Indonesia. This research uses a descriptive qualitative approach with data collection techniques through semi-structured interviews and documentation studies. The findings indicate that the implementation of green fiscal policy in Indonesia has progressed through instruments such as carbon taxes, green sukuk issuance, and climate budget tagging. These policies not only aim to restructure the fiscal structure towards sustainability but also encourage more transparent, accountable, and collaborative governance. Although still facing challenges such as resistance to reducing fossil fuel subsidies and limited regional capacity, significant opportunities open up through the potential of the national green sector and global financing support. This study concludes that synergy between fiscal instruments, institutional reform, and cross-sectoral governance is key to realizing an inclusive and sustainable green economy.

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Journal Info

Abbrev

JOIE

Publisher

Subject

Economics, Econometrics & Finance

Description

The journal publishes original articles on current issues and trends occurring internationally in Public Philosophy of Islamic Economics, Islamic Economic Thought, Islamic Economics and Contemporary Issues, Contemporary issues in Islamic Financial Institutions, Islamic Management Islamic Accounting, ...