<![CDATA[General Background: Sustainable finance and climate-responsive fiscal policy are central to Indonesia’s transition toward a green economy and the financing of environmentally oriented public projects. Specific Background: Green Sukuk provides thematic Islamic financing for environmentally sustainable projects, while Climate Budget Tagging (CBT) identifies and monitors state-budget allocations for climate change mitigation and adaptation. Knowledge Gap: Previous studies have addressed Green Sukuk and green budgeting, whereas their joint contribution within a single empirical framework for Indonesian public infrastructure requires further assessment. Aims: This study analyzes Green Sukuk and CBT in relation to sustainable infrastructure development in Indonesia. Results: Panel data from seven ministries during 2018–2024 were estimated using a Fixed Effect Model. Green Sukuk and CBT jointly explained 89.86% of variation in sustainable infrastructure development. Green Sukuk recorded a positive coefficient of 0.037332, while CBT produced a substantially larger positive coefficient of 1.005269. The ministry-specific intercepts were negative, indicating declining development in the absence of these financing and budgeting mechanisms. Novelty: The study integrates thematic Islamic finance and climate-specific fiscal allocation within one ministry-level panel model. Implications: The findings support coordinated use of Green Sukuk and CBT for green project financing, climate-budget planning, transparency, accountability, and climate-oriented public expenditure. Highlights: Fiscal allocation recorded the substantially larger regression coefficient. Thematic Islamic financing showed a positive association with public green projects. Seven ministries displayed negative intercepts without the two funding mechanisms. Keywords: Sustainable Finance, Green Sukuk, Fiscal Instrument, Climate Budget Tagging, Sustainable Development]]>
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