Agregat: Jurnal Ekonomi dan Bisnis
Vol. 10 No. 1 (2026)

Green Banking and Sustainable Finance: An Analysis of Islamic Banking Customer Perception in Indonesia

Marifatul Hikmah (Institut Teknologi dan Bisnis Ahmad Dahlan)
Henny Mulyati (Institut Teknologi dan Bisnis Ahmad Dahlan)
Muhamad Zulkifli (Institut Teknologi dan Bisnis Ahmad Dahlan)
Gusneli (Universiti Muhammadiyah Malaysia)



Article Info

Publish Date
24 Jun 2026

Abstract

The goal of this research is to investigate how consumer perception affects Indonesian Islamic banks provide sustainable finance support in the framework of green banking. Using Partial Least Squares Structural Equation Modelling (PLS-SEM) using SmartPLS, A quantitative approach was employed. Questionnaires were used to gather information from Indonesian Islamic bank clients. Each construct met the necessary standards for validity and reliability, according to the model of measurement evaluation. The Fornell-Larcker criterion and an HTMT ratio of 0.858 (< 0.90) were used to establish discriminant validity. The suggested hypothesis is backed by the findings of hypothesis testing, which showed that customer perception significantly improves sustainable finance support. These results imply that fostering a favorable customer perception is a crucial tactic in encouraging Islamic banks to adopt sustainable financial products. This research adds to our understanding of green banking within the framework of Indonesian Islamic banking and gives important guidance for bank management and financial regulators to push a sustainable finance agenda based on Shariah values

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Journal Info

Abbrev

agregat

Publisher

Subject

Economics, Econometrics & Finance

Description

Agregat: Jurnal Ekonomi dan Bisnis (Journal of Economics and Business) is aimed at being a medium for research results dissemination and scientific paper exchanges on the Indonesian economy and business among academics, practitioners, regulators, and public. Agregat: Jurnal Ekonomi dan Bisnis ...