This study examines the role of green sukuk as a Shariah-compliant financing instrument in supporting Indonesia’s progress toward the Sustainable Development Goals (SDGs). Since Indonesia issued the world’s first sovereign green sukuk in March 2018, valued at US$1.25 billion, the instrument has become a strategic vehicle for financing renewable energy, low-carbon transportation, waste management, and cli-mate resilience projects. However, several structural challenges still hinder its optimal development, in-cluding the limited identification of eligible green projects, low investor literacy, and an underdeveloped regulatory and market infrastructure. This research employs a qualitative descriptive method based on a literature study, analyzing secondary data drawn from academic journals, government reports, and insti-tutional publications related to green sukuk and the SDGs in Indonesia. The findings show that green sukuk contributes significantly to SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 13 (Climate Action), and SDGs 14 and 15 (Life Below Water and Life on Land) through the financing of environmentally responsible projects. Despite persistent challenges, opportunities remain through strong government support, a maturing Islamic financial market, instrument diversification, and alignment with national development agendas. This study concludes that green sukuk, grounded in the principles of Maqasid al-Shariah, rep-resents a strategic synergy between Islamic finance and sustainable development that can be strengthened through stronger regulation, broader public literacy, and continued cross-sector collaboration.
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