Second basic beliefs of the guideline is to deal with the correspondence among guarantors and financial backers. Backers should advise the natural goals regarding each undertaking and decide how plan of action will fit the ecological goal.
The third basic belief is the board of continues. For every period, the equilibrium of bonds' returns should match the distribution for the individual ecological task.
In conclusion, GBP additionally sets announcing as the its last guiding principle. That being said, an ideal premise data should be promptly accessible to give thorough data on these green ventures for all financial backers.
This section presents the trends of issuance of green bonds in ASEAN countries, and com-pares them across ASEAN countries and with the trends of global issuance of green bonds.Five out of ten ASEAN countries have issued green bonds, i.e. Indonesia, Thailand, Malay-sia, Singapore and Philippines. From2018 Indonesia joined Singapore and Malaysia in issuing green bonds. In 2019 Philippinesand Thailand started to issue green bonds. The issuance of green bonds in ASEAN waspioneered by Malaysia and Singapore. Although Indonesia started to issue green bondsa year later than Singapore and Malaysia, Indonesia became the largest issuer of greenbond (58%) in ASEAN (as of June 2019), followed by Singapore (18%) and Malaysia(14%).
Indonesia's opportunity in green projects
While Indonesia is still considered as a developing country, it has already been participating in numerous green and environmental. The supply side, public and private sector, are also starting to see these projects as a possible profitable source of income. These conclusions can be explained further by four factors:
From demand side:
- Indonesia's government guiding principles in energy (Rencana Umum Energi Nasional) to increase renewable energy usage to 23%
- The urgency to increase Indonesia's relatively low electrification ratio
From supply side:
- Global reduction in cost of renewable energy technologies + emerging supporting technologies
- Indonesia's major source of renewable energy supply
Meeting Indonesia's green expected through its sovereign green bonds
With all open doors at hands fit to be promoted, as indicated by BAPPENAS (The Public Advancement Service), framework extension plan is assessed to require USD 400 billions somewhere in the range of 2015 and 2019. Out of 400 billion USD, just 63% will be financed by government spending plan. Presently the inquiry is, how to procure the remainder of capital required for these speculations? Capital market, then, plays its job to produce the USD 150 billion-hole. This is where green bonds open doors in Indonesia emerge to activate capital in changing Indonesia's maintainability scene.
