Constitutional Review of Green Bond Regulation in Indonesia


Indonesia’s vision of the Long-Term Development Plan (RJPJ) in 2005-2025, is to actualize an independent, advanced, just, and prosperous Indonesia. One of the missions conducted is to realize a beautiful and sustainable Indonesia. This vision has shown that the effort of economic development must pay attention to the balance of the use, sustainability, existence, as well as the use of natural resources and environment. In an industrial context, financial relations between the financial institution and financial product are in one hand. And the other hand is the optimization of natural resources. This context has termed as “sustainable finance”. The implementation of the principle of finance sustainable is actualized through the green bond regulation which has been regulated in the Financial Services Authority Regulation No. 60/POJK.05/2017 on the Issuance and the Terms of Green Bond. This study aimed to explore the constitutional aspects of implementing the regulation of green bond in Indonesia. The method used is normative legal research with statute and conceptual approach. The study’s result that green bond regulation related to human rights, particularly a right to obtain good environment as mandated in 28 H paragraph 1 and economic democracy as mandated in the Constitution of the Republic of Indonesia’s Article 33 paragraph 4.

Keywords: Green bond regulation; Indonesia; sustainability; industrial context

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