Meiske Wenno, Muhammad Faisal, Erfendi Regar, Hasmia Melati Arifin

Green Financial Management as a Strategy to Face the Challenges of Sustainable Finance

Introduction

Green financial management as a strategy to face the challenges of sustainable finance. Explore green financial management as a strategy for sustainable finance challenges in Indonesia. Strengthen regulations, capacity, and innovation to align economic growth with environmental protection.

Abstract

This study examines green finance management as a strategic approach to addressing sustainable finance challenges in Indonesia. As the country faces pressing environmental and social issues, financial institutions are under increasing pressure to align their practices with sustainability principles. Despite policy initiatives such as the OJK Sustainable Finance Roadmap, challenges remain in regulatory enforcement, institutional capacity, and public awareness. Using a qualitative design, data were collected through in-depth interviews with three key informants representing a financial institution, a regulatory body, and a sustainability practitioner. The findings highlight five central themes: the importance of strengthening regulatory frameworks, enhancing institutional capacity, promoting stakeholder collaboration, overcoming awareness and cultural barriers, and fostering green financial innovation. These results suggest that green finance management serves as both a policy instrument and a practical tool for aligning economic growth with environmental protection. The study contributes to the literature on sustainable finance in Indonesia and offers practical insights for policymakers, financial institutions, and stakeholders in advancing sustainability through finance.

Review

This study effectively positions green financial management as a critical strategy for navigating the complexities of sustainable finance, particularly within the Indonesian context. The abstract clearly articulates the pressing environmental and social challenges faced by Indonesia and the increasing imperative for financial institutions to integrate sustainability. The chosen qualitative design, employing in-depth interviews with key informants from regulatory, institutional, and practitioner perspectives, appears appropriate for exploring the multifaceted nature of these challenges and the strategic responses. The study's focus on Indonesia, a significant emerging economy with distinct policy initiatives like the OJK Sustainable Finance Roadmap, provides a valuable contextualization for its investigation. The research identifies five pertinent themes: strengthening regulatory frameworks, enhancing institutional capacity, promoting stakeholder collaboration, overcoming awareness and cultural barriers, and fostering green financial innovation. These themes collectively underscore the systemic nature of the challenges and the comprehensive approach required for effective green finance implementation. The abstract highlights that green finance management is presented not only as a policy instrument but also as a practical tool for reconciling economic growth with environmental protection. This dual perspective is crucial for understanding its potential impact and applicability within various sectors. The study makes a clear contribution to the existing literature on sustainable finance in Indonesia by providing empirical insights into the practical aspects and strategic implications of green financial management. The actionable findings, particularly for policymakers, financial institutions, and broader stakeholders, are a strong point, suggesting the research possesses a high degree of practical relevance. While the small sample size (three key informants) for a qualitative study in a complex field might raise questions about the generalizability of specific nuances, the abstract nevertheless presents a well-structured and relevant investigation into a vital area of contemporary finance.

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