A Review of Indonesia’s Commitment to Achieving the Sustainable Development Goals (SDGs) through SDG Bonds Issued by the Government of Indonesia

Abstract

This study is entitled “A Review of Indonesia’s Commitment to Achieving the Sustainable Development Goals (SDGs) through SDG Bonds Issued by the Government of Indonesia.” Climate change is the main threat to sustainable development, with broad impacts that disproportionately affect the poorest and most vulnerable groups. As a global issue, it requires urgent actions from all countries to ensure the achievement of the SDGs in line with the Paris Agreement. However, meeting the SDG targets demands substantial financing, and the state budget alone is insufficient. To address this gap, innovative financing instruments such as SDG Bonds are needed to support SDG implementation. The objective of this study is to review Indonesia’s commitment to the SDGs, analyse opportunities and challenges in SDG achievement and SDG Bond issuance, and examine the impact of SDG Bond allocations from 2021 to 2023. This research uses a qualitative-descriptive method, based on primary data from interviews with three informants and secondary data from official reports and academic literature. The findings show that Indonesia demonstrates strong commitment to SDG implementation. Opportunities include abundant natural resources that, if managed sustainably, can accelerate SDG progress. Key challenges include the need for strengthened multi-stakeholder collaboration and significant financial requirements. SDG Bonds are proven to be an effective ESG-based instrument and have successfully financed six SDG goals.