Indonesia has raised an impressive $9.6 billion through green sukuk between 2018 and 2023, tapping into the growing demand for Shariah-compliant and ESG assets^{<!----><!----><!----><!---->}. But where is that money actually being invested?

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Many assume "green finance" automatically means renewable energy projects like solar and wind power^<!---->. A World Bank report even noted that prospectuses for these instruments stated that about 98% of proceeds would be allocated to the energy sector^<!---->.

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However, this podcast dives into a report from The Diplomat that sets the record straight. We uncover the surprising reality based on reports from Indonesia's Ministry of Finance: almost none of the funds have gone to renewable energy^<!---->.

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So, where did the billions go?

• The vast majority has been used to finance water management projects, including irrigation and flood control^<!---->.

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• Funds have also been allocated to developing railway infrastructure^<!---->.

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• In fact, the Ministry of Public Works has been the recipient of 98% of the sukuk proceeds^<!---->.

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While it's not funding clean energy, this is still a positive development that shows the growing sophistication of Indonesia's capital markets and helps finance its overall infrastructure needs^{<!----><!----><!----><!----><!----><!----><!----><!----><!---->}. Join us as we explore the real story behind Indonesia's successful green sukuk program.

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