GREEN SUKUK IN INDONESIA: Unraveling Legal Frameworks for Sustainable Islamic Bonds

Green sukuk is a contemporary-era sharia investment revolution that accommodates environmental aspects. Integrating Sustainable Financing in green sukuk can be an alternative investment platform contributing to sustainable development. The concept paradigm is relevant for strengthening the proportional construction of green sukuk law in Indonesia. The study aimed to analyze the concept of sustainable financing as the legal basis for implementing green sukuk in supporting sustainable development programs in Indonesia. The study used normative legal research methods. This research approach used a conceptual approach through reasoning the concepts of sustainable financing, green sukuk, and other concepts relevant to the topic of study to strengthen the discussion argument. The study showed that there are 2 (two) components of the relevance of the Sustainable Financing paradigm as the basis for implementing green sukuk in Indonesia. First, the implementation of green sukuk in various countries has rules that accommodate sustainable financing in response to climate change problems. Second, the sustainable financing Paradigm is relevant as a source of green sukuk legal construction to strengthen the policy basis for implementing environmentally sound investment in Indonesia. The urgency of the regulation is to increase investment commitments that can increase environmental resilience, alleviation of social problems and business transparency in contributing to sustainable development in Indonesia.


Introduction
The development of contemporary-era green sukuk research produces ideas as part of participation in overcoming the global issue of climate change. 1 H.M. Liu said Green Sukuk is one of the efforts to promote the transformation of the green economy towards sustainable development.This paradigm cannot be separated from geographical literacy towards the development of financial instruments that prioritize not only profit-oriented but also accommodate environmental resilience in facing climate change in the future. 2e seriousness of the economic idea is the answer.Jankovic & Bowman's research showed that the growth of green economic shows the seriousness of commitment amid promising global issues after getting criticism due to a perceived lack of commitment to contribute to climate change. 3The emergence of realizing Green Sukuk as an Islamicbased investment is one of the answers in responding to criticism of the world of green 1 Felicia H M Liu and Karen P Y Lai, "Ecologies of Green Finance: Green Sukuk and Development of Green Islamic Finance in Malaysia," Environment and Planning A: Economy and Space 53, no. 8  (August 19, 2021): 1896-1914 Has An Impact On The Fate Of Life In The Future.So Financial Investment Must Have A "Green" Orientation As Part Of Tackling Life-Threatening Climate Change, Sarah Bracking, "Performativity in the Green Economy: How Far Does Climate Finance Create a Fictive Economy?," Third World Quarterly 36, no. 12 (December 2, 2015): 2337-57, https://doi.org/10.1080/01436597.2015.1086263.
3 Vladimir Janković and Andrew Bowman, "After the Green Gold Rush: The Construction of Climate Change as a Market Transition," Economy and Society 43, no. 2 (April 3, 2014): 233-59, https://doi.org/10.1080/03085147.2013.791511.investment to face the challenges of global dynamics. 4Green Sukuk is a milestone in the transition of Islamic investment, which was initially only synonymous with the prohibition, such as the charging of interest or industries prohibited by the religion, 5 but also prioritizes the principle of green finance to bring benefits to the environment, especially solutions to climate change disasters. 6een Sukuk already occupies the investment world in Indonesia but has yet to be supported by proportional rules as an ecology-oriented Islamic investment in realizing sustainable financing.However, even though there is no regulation yet, Indonesia is the first country to initiate the issuance of the first retail Green Sukuk in Southeast Asia.In 2018, the total Green Sukuk investment in Indonesia amounted to US $ 1.25 billion, equivalent to Rp16.75 trillion. 7However, legally, the provisions for issuing Green Sukuk in Indonesia are only regulated in the Financial Services Authority Regulation Number 60 / POJK.04 / 2017 concerning Issuance and Requirements of Environmentally Friendly Debt Securities.Regarding sustainable financing, green sukuk arrangements in Indonesia do not represent the concept.First, Sustainable financing has become the primary paradigm for the financial world in realizing investments that have Environmental, Social, and Government (ESG) principles amid the climate change era. 8Meanwhile, Law No. 19 of 2018 concerning State Sharia Securities as the basis for Sukuk issuance does not have legal principles that accommodate the essence of ESG principles, which implies that there are no imperative guidelines in supporting the realization commitment of green sukuk nationally.Second, the accommodation of green sukuk only in institutional rules implicates the realization of green sukuk in Indonesia only facultative or voluntary, so the  beneficial for the environment's future and can promote a high commitment to corporate social responsibility. 12Moreover, Green Sukuk can also be an investment instrument for realizing new and renewable energy investments.Research from D. Hasan shows guidelines on the implementation of new and renewable energy investment financing through green sukuk to create environmentally friendly energy security. 13though several researchers have examined the correlation between green sukuk and sustainable financing, these studies have yet to examine the legal prospects of how proportional legal arrangements are the legal basis for implementing an ideal Green Sukuk in Indonesia based on sustainable financing.This research study is urgent to analyze the paradigm of sustainable financing that can be accommodated into legal principles to become the basis for implementing green sukuk as part of Islamic investment in Indonesia.The contribution of the sharia analysis in this study is part of the reasoning of Islamic norms in the contemporary era, which can be a source of developing positive law for social interests. 14The results of Islamic reasoning can be internalized to become a source to support the preparation of ideal green sukuk regulations in Indonesia.Without clear legal provisions, it will impact limited individual understanding of green sukuk so that it is far from the ideal value. 15These factors can result in investors deliberately violating initial commitments that cause more significant environmental losses. 16The particular study determines the focus of the object of study, which includes an analysis of how the urgency of Sustainable Financing in the legal principle can be the basis for implementing green sukuk with ideal ESG principles to contribute to increase the growth and development of the green economy in Indonesia.

Method
The research used a normative legal research methods to answer legal problems to obtain a comprehensive answer.Normative legal research is a method to formulate legal rules, legal principles and legal doctrines in constructing legal argumentation as problemsolving in a legal problem. 17This type of research was considered appropriate for analyzing the problematic rules of green sukuk Indonesia, which has no proportional regulatory provisions in realizing these instruments based on the Sustainable Financing principle approach.Then, it used a conceptual approach to analyze problems that are more comprehensive and deep. 18The concepts of Sustainable Financing and Green Sukuk acted as the basis for literacy to strengthen the results of discussions on the issues being studied.
The data analysis used the content analysis method.Holsti stated that the content analysis approach opens new horizons in finding, identifying, and processing material through conceptual integration of the explanation of research objects. 19Through this method, the article tried to analyze research issues more dynamically through various conceptual literacy presented in each analysis argumentation.

Findings and Discussion
The Sustainable Financing Paradigm in Legal Principle as the Basic for

Implementing Green Sukuk
Sustainable economic development is critical to creating a better future for everyone, and the financial sector plays a vital role in achieving this goal. 20The interaction between sustainable finance and the financial system can make a major contribution to sustainable economic growth.Sustainable finance revolves around investment choices that incorporate environmental, social, and governance (ESG) considerations.Financial institutions, through investments in sustainable enterprises, can encourage the advancement of environmentally friendly energy sources, fair labor practices, and other initiatives that are aligned with sustainability goals. 21 realizing sustainable development that can maintain economic stability, a national economic system is needed that prioritizes equality among economic, social, and environmental aspects.Through the Financial Services Authority, Indonesia has created a sustainable finance roadmap by issuing regulations that can develop the capital market industry and environmental sustainability.As the 2005-2025 Long-Term Development Plan (RPJP) states Indonesia's national development vision is to achieve an independent, advanced, just, and prosperous Indonesia.The realization of the national development vision is pursued through one of the 8 (eight) development missions, namely realizing a beautiful and sustainable Indonesia in the following ways: (1) Balance between the utilization, sustainability, existence, and usefulness of natural resources and the environment; (2) Sustainable economic utilization of natural resources and the environment; as well as (3) Maintenance and utilization of biodiversity as a principle capital for development.
ICMA plays an active role in promoting environmental, social, and governance (ESG) initiatives.ICMA developed The Green Bond Principle (GBP) to guide on the issuance of green bonds. 22The Green Bond Principles aim to enable and develop the key role that debt markets can play in funding projects that contribute to environmental sustainability.In addition, issuers can use green bond principles in terms of use of funds, project evaluation and selection, fund management, and reporting in the process of issuing green bonds.Issuers must also provide information related to the environmental impact of projects financed by green bonds.It is the interesting factor that makes investors interested in providing their investment because green bonds prioritize sustainable financing practices. 23Green Sukuk attempts to align financial investments with climate and other sustainability goals. 24Also, it plays a significant role in funding projects that contribute to environmental protection and social welfare.This investment model provides support for positive change in the financial market.In Indonesia, the principles of green bonds have been applied in developing a green bond framework in the issuance of green bonds.
The priority of sustainable financing in green sukuk has provided the highest level of investment in renewable energy and energy efficiency.Rahman, in his research, illustrated the process of energy creation and use has become a priority in green bond issuance. 25Sustainable development bonds have issued the highest level of investment in 22 "Green Bonds Principles," ICMA, 2018, https://www.icmagroup.org/assets/documents/Regulatory/Green-Bonds/Green-Bonds-Principles-June-2018-270520.pdf.
23 Albidin Linda, "Green Bonds, The Way to Drive More Sustainable Development in Indonesia," EY, 2022, https://www.ey.com/En_Id/Climate-Change-Sustainability-Services/How-Green-Bonds-Drive-Sustainable-Developments-In-Indonesia. 24 many sectors, such as public and private transportation (environmentally friendly), water and wastewater, biodiversity, and solid waste management.Not all sectors are used in green sukuk but are commonly used in sustainable development bonds, such as finance, public administration, social protection, health, education, industry, trade and services, and information and communication technology.
As per the Green and Sustainability Sukuk Report 2022, ESG sukuk are categorized into various types, each with a distinct purpose and focus.Green Sukuk serves to finance environment-positive projects like renewable energy, clean transportation, carbon neutrality, and sustainable water and wastewater management.On the other hand, Social Sukuk aimed to fund projects with a positive social impact.Sustainable Sukuk allocates raised funds exclusively for environmental and social projects.Sustainability or SDGrelated Sukuk ties to an issuer's commitment to meet ESG objectives, allowing proceeds for general use but mandating the achievement of predetermined targets; failure results in a penalty of increased coupons.Transitional Sukuk supports a company's transition towards reduced environmental impact or carbon emissions, while Blue Sukuk focuses on marine-related projects such as waste management or marine conservation.These classifications demonstrate the diversified nature of ESG sukuk, highlighting their varied roles in promoting sustainability and social responsibility. 26G sukuk can support the implementation of sustainable development bonds by anticipating the impact of the implementation of funding sectors that support sustainable and environmentally friendly projects.This concept is part of sustainable financing with ESG (environmental, social, and governance) principles.The goal is to create long-term sustainable value and consider non-financial aspects in financial decisions.This concept supports the issuance of green sukuk as an alternative to sustainable financing for infrastructure development. 27 green funding that is safe for the environment, especially in preventing project development problems that often reduce the rights of the surrounding community. 28ere are two main categories of sustainable financing products in the financial market.First, financial products dedicated to specific GST projects, including "green bonds/loans" or "social bonds/loans," where proceeds are allocated to finance green projects or social initiatives such as sustainable buildings, transportation, power generation, or social housing.Second, financial products that support the ESG ambitions of the issuer/borrower: These are known as "sustainability-related" or "ESG-related" bonds or loans.In this case, the use of funds may be less relevant, but the funding supports initiatives to improve the issuer's or borrower's overall ESG performance, such as making their supply chain and output more environmentally friendly. 29e application of ESG principles to green sukuk products should have the aligned objective of ensuring that these financial instruments contribute to sustainable development and address environmental and social concerns.Green sukuk can utilize procedures with the same green principles as green bonds.The issuance method is similar to a typical sukuk but with additional elements, such as managing the use of proceeds from the funded project.The management of the use of proceeds from the funded project is one of the GST-specific elements included in green sukuk.The issuer is responsible for such management.
ESG principles play an important role in ensuring sustainable development through green sukuk. 30Green Sukuk ensures compliance with green principles similar to green bonds, with additional elements such as managing the use of funds.Transparency and accountability are also emphasized, as Green Sukuk issuers are expected to provide ongoing sustainability reporting, disclosing information on funded projects and their environmental impact.Green Sukuk combines financial objectives with environmental priorities, creating a symbiotic relationship where investors can achieve market returns 28 Aditya Prastian Supriyadi, "Reduction of Public Participation Rights in The Rules of Analysis of Environmental Impacts for Business Licensing in Indonesia: Green Constitution Perspective," Jurnal HAM 14, no. 1 (2023): 15-38, https://doi.org/10.30641/ham.2023.14.17-40.
29 Marieke Driessen, "Sustainable Finance: An Overview of ESG in the Financial Markets," ed.Danny Busch, Guido Ferrarini, and Seraina Grünewald (Cham: Springer International Publishing, 2021), 329-50, https://doi.org/10.1007/978-3-030-71834-3_10. 30Liu and Lai, "Ecologies of Green Finance: Green Sukuk and Development of Green Islamic Finance in Malaysia."while contributing to addressing environmental challenges.The platform can be an instrument to overcome environmental problems due to climate change. 31In addition, the green sukuk platform can also be an instrument to welcome legal reform and the formation of rules for the realization of green energy as part of efforts to alleviate environmental problems arising from excessive use of fossil energy. 32een sukuk, as evidenced by various findings, emerge as a crucial financial instrument in promoting sustainability and addressing environmental concerns.First, these sukuk effectively combat pressing environmental issues and play a pivotal role in reducing greenhouse gas emissions, 33 aligning with global efforts to mitigate climate change.Furthermore, they serve as a means to finance renewable energy initiatives and other environmentally friendly projects, thus contributing significantly to sustainable development goals. 34An important facet of green sukuk lies in their ability to attract a broader investor base, particularly those interested in supporting sustainable and responsible investments, thereby enlarging the pool of funding available for eco-friendly initiatives.This increased investment not only expands the market's scope but also offers issuers access to new avenues for financial support, enhancing the overall reach and impact of these instruments.Additionally, green sukuk proves instrumental for countries facing financial deficits in pursuing Sustainable Development Goals (SDGs), acting as a viable financial solution for funding gaps.One of their key features involves the assurance of transparency and accountability through regular sustainability reporting, ensuring that the raised funds are used for the intended environmental and social projects.Finally, by directing capital towards projects with clear environmental and social benefits, green sukuk significantly contributes to sustainable development efforts on a global scale.
Apart from Indonesia, several other countries have also implemented the concept of green sukuk to support sustainable and environmentally friendly projects.Some countries that have issued Green Sukuk include: Share knowledge and experience at international forums to showcase achievements and learn from others.(4) Prioritize renewable energy projects and offer incentives to attract green sukuk issuance.( 5) Address challenges in the green sukuk market, such as green taxonomy and the application of green assets, to create a conducive environment for issuance.Indonesia, through its competent authorities, needs to tailor its sustainable finance strategy to local needs.In addition, stakeholders need to consider Indonesia's unique economic and cultural context so that Indonesia can take a step forward in promoting environmentally friendly initiatives and sustainable finance.

Sukuk as Platform Investment Islamic in Indonesia
Green Sukuk is a breakthrough in business innovation in responding to the dynamics of countries in the world that are developing green finance with investors to contribute to mitigating disasters due to climate change.The world movement is currently concentrating on mobilizing financial resources for the benefit of low-carbon development through integrating green bonds into country portfolios. 35The offering of the green sukuk platform into Indonesia's investment portfolio so that the country also adapts to creating a low-carbon spiritual financial system to benefit people's lives that can avoid the distress of the effects of economic exploitation.The business platform offer is also a response to the condition of Indonesia's territory, which is vulnerable to climate change and endangers the sustainability of ecosystems and natural resources. 36Green sukuk will be an alternative platform for capital mobilization by involving external parties to jointly lead sustainable development in creating resilience in people's lives-distress due to climate change. 37e accommodation of green sukuk into official law is part of efforts to transform the green economy that can support Islamic green investment instruments to compete with conventional green investment platforms.According to U.F.The legal construction of green sukuk is very relevant by adopting the concept of sustainable financing to become a concrete, accountable, and transparent legal principle.
Integrating the concept is an appropriate choice as a formal legal basis for green sukuk to fill the legal void in Indonesia rather than being subject to external assessment by independent opinion providers. 40The availability of formal green sukuk rules is a legal principle for Indonesia 41 proportionally in supporting full commitment to the implementation of green sukuk, which has implications for realizing a circular economy.This legal position is important as an official guideline in overcoming the problems of financial institutions in Indonesia that need to understand the guidelines for implementing green sukuk through the principle of sustainable financing. 42Although these problems are not only experienced by Indonesia, several developing countries are also experiencing the same problem, especially the crisis in determining proportional green standards for implementing green sukuk. 43is condition encourages Indonesia to need the right formal legal to support green economy projects for a more dignified future of human life.The concept of sustainable financing as the basis for the formal legal construction of green sukuk creates legal principles with a green bond perspective that can support the implementation of Green Sukuk in the energy, forestry, agriculture, waste, industrial production, and product use sectors. 44The Sharia paradigm will complement the legal construction in increasing the certainty of green sukuk investment by Islamic corridors in full support of mobilizing capital for the benefit of sustainable development 45 such as energy efficiency, natural disaster risk reduction, sustainable transportation, waste management, tourism, environmentally sound building construction, and sustainable agriculture, 46 as well as green sukuk investment issued by the Government of Indonesia, illustrated in figure 1: Supporting a proportional set of rules is very influential in increasing legal certainty for investors to implementing green sukuk with high accountability.Legal construction with green finance-minded blockchain technology accommodation can create business legality and make accommodating investors easier. 48Legal certainty greatly affects investor interest because investors can have legal protection in carrying out corporate responsibilities in the business that prioritizes survival on earth. 49This legal support is influential in creating a sustainable green sukuk investor climate that can guide the company to move by prioritizing accountability.The principle of accountability in business with a green orientation is very influential in increasing environmental commitment through compliance with legal, social, and political norms. 50These legal products can increase transparency in implementing green finance business by integrating various technologies with accounting theory to avoid uncertainty and difficulties in ambiguous business practices in alleviating climate change. 51A legal product model based on this paradigm is a legal principle in supporting the implementation of green sukuk that can realize sustainable development goals (SDG's). 52The legal support affects the realization of sustainable development through a green Islamic finance platform to manage various projects with priority principles of environmental security or reducing the risk of climate change, such as global warming. 53e legislative council must take steps to reform the SBSN Law with a Sustainable Financing perspective so that there is a proportional green sukuk legal basis as part of realizing the SDG's goals in Indonesia.Research by A.J. Yesuf & Assaouli shows that the design of Sharia green finance rules relevant to SDG's financing must have a business transformation that is not only guided by Social Responsibility Investment (SRI). 54The financial transformation must also have a business manifestation with the Sustainable Financing paradigm to create a finance business concerned with the Environment, Social, and Governance (ESG). 55The accommodation of this paradigm into legal legitimacy is one of the important factors for the issuance of green sukuk in Malaysia that is competitive and environmentally sustainable. 56Integrating business aspects with the environmental and social in legal instruments is a combination of moral and material in implementing the green economy. 57Then, it is equipped with aspects of "governance" that play a role in realizing a professional Islamic company committed to improving social and environmental sustainability performance. 58e sustainable financing paradigm in the regulatory apparatus will complement the imperative guidelines in implementing green sukuk in Indonesia to contribute to the success of sustainable development.These 3 (three) components become the spirit of sustainable financing in realizing a competitive business climate with a transition paradigm to a low-carbon economy. 59The Sustainable Financing paradigm is an instrument to reform traditional financing that is less relevant to implementing sustainable development goals because it needs to consider 3 (three) dimensions of future business, including environmental, social, and government (ESG) issues. 60However, the most important thing to realize is that the concept, according to Setyowati, requires a set of regulations to optimize Sustainable Financing towards a low-carbon economy by providing facilities, incentives, and concrete guidelines for the economic transition. 61So the state apparatus must respond because, according to Durrani research et al., they are one of the actors in the successful implementation of sustainable financing governance. 62e urgency of the sustainable financing paradigm based on the implementation of green sukuk in Indonesia is presented in the figure 2. 58   Based on figure 2, 3 (three) dimensions of sustainable financing have an important role to be internalized into legal aspects as the basis for implementing Green Sukuk in Indonesia.First, the Environmental aspect.Fundamentally, the green sukuk instrument is a compatibility of the legacy of the Islamic financial system with the adoption of green principles that can improve environmental performance through investment in the earth. 63re specifically, Green Sukuk investment instruments are derived from the concepts of "wasatiyyah" (moderation) and "façade" (leaving chaos), which aim to maintain the biodiversity, 66 creating business morale, 67 increasing AMDAL (Analisis Dampak Lingkungan or Environmental impact assessment) transparency, 68 and corporate compliance to respond to climate change. 69The support of sustainable financing rules can improve the performance of Green Sukuk in responding to climate change problems that increase the risk of hydrometeorological disasters, which cause 80% of disasters, such as floods in 105 cities in Java, the cause of shellfish in Nusa Tenggara, the increase in infectious diseases, and poverty line alleviation. 70As Rahman research et al. shows, the performance of green sukuk contributes to overcoming environmental problems by mobilizing budgets for environmentally friendly projects in regions, such as the Middle East & North Africa (MENA), vulnerable to climate change. 71cond, the social aspect of the sustainable financing principle for realizing green sukuk.In addition to economic and environmental principles, the character traits of green sukuk investment also need to prioritize the principle of social development in investment based on applicable Islamic corridors to avoid the practice of usury, uncertainty (gharar), and gambling (maysir). 72Social aspects are influential in accommodating Sharia compliance to link accountability mechanisms in mobilizing finance with green goals through Islamic corridors. 73The orientation of social development needs to be a priority as an effort to evaluate the realization of green investment, which has experienced obstacles in providing the expected benefits for community development. 74As in Fitrah and Soemitra's research, the interest of green sukuk investors tends to increase but needs to be balanced with the commitment of state and regional instruments, which impacts the lack of consistency in issuance. 75This problem is a factor in green sukuk that could be more optimal to contribute to social alleviation due to climate change because investment is only profit-oriented and not substantial. 76Internalization of social aspects into green sukuk rules can increase the commitment to alleviating economic problems, encouraging the achievement of social goals, and mitigating humanitarian crises in developing countries. 77The realization of green sukuk can optimally attract investors so that investment realization affects economic growth to recover from the economic crisis and overcome socio-economic problems. 78As Ntsama et al. research, green investment instruments have played a role in contributing to social development, especially for countries that have income scales at the middle-low level. 79The dynamics of Islamic investment instruments have developed and can adapt to global social challenges from the aspect of SDGs. 80ird, the Government aspect.Green investment commitments need to be escalated into legal, moral guidelines to promote the value of transparency.The urgency of the transparency principle is to realize the optimization of the commitment of environmentally oriented companies to implement low-carbon development projects in various sectors. 81Optimization of transparency needs to be improved to respond to the evaluation record of green investment implementation that is not optimal to realize the objectives of the platform due to lack of transparency in the distribution of funds, 82 which results in unclear projections of low-carbon projects, 83 promotion of projects that contradict the SDG's, 84 and lack of response to negative impacts of business practices. 85 the principle of transparency is improved, it will have implications for increasing the success of SDG projects for climate change control. 86The problem of records from the evaluation of green investment will be overcome to avoid corporate fraud that can hamper program objectives. 87So, green investment management must have transparency in determining green value and profit by considering the spatial, temporal, and every stakeholder involved. 88As A. Mustafa's research et al., the element of transparency in sustainable finance is another drag to attract green investors, and the element of minimal risk investment. 89The successful internalization of transparency has an urgency to imperative legal guidelines in realizing corporate practices committed to environmental sustainability towards sustainable development.

Conclusion
As a Sharia investment instrument, Green Sukuk is a business platform relevant to sustainable business development to face climate change problems.The platform is very supportive of encouraging the acceleration of green investment in realizing ecosystem responsibility based on Sharia principles to respond to global politics to maintain the survival of the ummah sustainability.The interaction between sustainable finance and the financial system can significantly contribute to sustainable economic growth by incorporating environmental, social, and governance (ESG) considerations into investment choices.Green Sukuk, which is guided by Sharia principles and similar to green bonds, has the potential to have a positive impact on sustainable development by attracting a wider investor base and directing funds to projects that are beneficial to the environment and society.The results of this study reveal that the concept of Sustainable Financing is very relevant as a source of regulatory construction to fill the void of green sukuk law in Indonesia.3 (three) ESG dimensions in Sustainable Financing can be an indicator to strengthen regulations on implementing green sukuk that can contribute to sustainable development in Indonesia.Green sukuk rules with sustainable financing dimensions can realize investment realization to increase environmental resilience, alleviate social problems, and realize business transparency to support the smooth running of green projects in Indonesia.
legal framework that accommodates green sukuk in Indonesia has a weak and disproportionate position as a legal basis.9Green Sukuk and Sustainable Financing are the objects of massive study during the challenges of global environmental issues.M.S. Abdullah & J.S. Keshminder have identified a growing interest in Green Sukuk in Malaysia.Based on this research, ecological elements have become an indicator of investor interest in green sukuk in participating in the global realm, and they need to be accommodated by the government in the country. 10Then Y.A. Faisal et al. presented the results of their research on the social, emotional, and religious impact on Green Sukuk's interest in Indonesia.Research based on the Theory of Consumption Value (TCV) has found valuable insights for literacy in determining sukuk interest and being one of the factors in increasing the national economic sector. 11Then, N. Alam et al.Demonstrating Green Sukuk investment is highly

Figure 2 .
Figure 2. Personal processed data by Author about illustration urgency ESG on Sustainable Financing for Indonesian Green Sukuk (2023) , https://doi.org/10.1177/0308518X211038349. 2 S. Bracking Revealed That The World Of Investment Is One Of The Factors In Environmental Damage Due To Not Controlling Environmentally Friendly Industries.The Investment World Needs To Pay Attention To The Current Geographical Status Which Is Starting To Be Polluted Due To Pollution And Jiří Dusík and Alan Bond, "Environmental Assessments and Sustainable Finance Frameworks: Will the EU Taxonomy Change the Mindset Over the Contribution of EIA to Sustainable Development?,"Impact Assessment and Project Appraisal 40, no. 2 (March 4, 2022): 90-98, https://doi.org/10.1080/14615517.2022.2027609.

Table 1 .
Countries that have Implemented Green Sukuk Moghul et al. research,the accommodation of Green Sukuk into the legal structure increases the certainty of businesses with low-interest rate programs than conventional loans because they do not follow changes in interest rates, and there are no fluctuations in interest rates.
38The advantages of this investment platform are what make green sukuk currently growing quite rapidly and quite in demand.As Narayan et al. research, many investors are transitioning their assets to sukuk and green sukuk platforms because Islamic or conventional stock market platforms have high volatility and risk.The migration of investors was seen during the Covid-19 pandemic, where there was substantial evidence that volatility increased over time and was higher than usual.39 36 Jimmy Susanto et al., "The Impacts of Climate Variables and Climate-Related Extreme Events on Island Country's Tourism: Evidence from Indonesia," Journal of Cleaner Production 276 (2020): 124204, https://doi.org/10.1016/j.jclepro.2020.124204. 37Umaira Danish Dervi, "A Bibliometric Review of Green Financing; Implication for Islamic Finance" (2021), https://ir.iba.edu.pk/etd/87/. 38Umar F Moghul and Samir Safar-Aly, "Green Sukuk: The Introduction of Islam's Environmental Ethics to Contemporary Islamic Finance," Georgetown International Environmental Law Review (GIELR) 27, no. 1 (2015): 1-60, https://ssrn.com/abstract=2580864. 39Paresh Kumar Narayan, Syed Aun R Rizvi, and Ali Sakti, "Did Green Debt Instruments Aid Diversification During the COVID-19 Pandemic?,"Financial Innovation 8, no. 1 (2022): 21, https://doi.org/10.1186/s40854-021-00331-4. 40The Implementation Of Sukuk In Indonesia Still Relies On Law No. 19 Of 2008 Concerning State Sharia Securities (State Sukuk).The Law Only Regulates Sukuk In General.The Legal Basis Of Sukuk In Indonesia Does Not Yet Have A Special Clause For The Implementation Of Green Sukuk.So That The Assumption Of The Legal Basis Of Sukuk Available In Indonesia Does Not Have An Imperative Commitment In The Implementation Of Green Investment.Moreover, The Green Sukuk Issuance Policy In Indonesia Is Only Accommodated By Institutional And Ministerial Regulations.The Policy Model Represents That The Implementation Of Sukuk Is Still Alternative And Not Mandatory.It All Depends On Syed Marwan Mujahid Syed Azman and Engku Rabiah Adawiah Engku Ali, "Islamic Social Finance and the Imperative for Social Impact Measurement," Al-Shajarah: Journal Of The International natural state (mizan) of planet Earth by investing in environmentally friendly infrastructure development projects for social welfare. 64Formal regulation of green sukuk is important in creating environmentally compliant corporate accounting 65 in protecting 63 Qaisar Ali et al., "Environmental Beliefs and the Adoption of Circular Economy Among Bank Managers: Do Gender, Age and Knowledge Act as the Moderators?," Journal of Cleaner Production 361 (2022): 132276, https://doi.org/10.1016/j.jclepro.2022.132276. 64Habib Ahmed et al., "On the Sustainable Development Goals and the Role of Islamic Finance," Sustainability Hybridisation in the UK Public Sector," Accounting, Organizations and Society 39, no.6 (2014): 453-76, https://doi.org/10.1016/j.aos.2014.02.003.