The Role of Indonesian Investors in Achieving SDGs Through Green Bonds

With the ambition to achieve the Sustainable Development Goals (SDGs) agenda in 2030, many countries are increasing the implementation of green financing through green bonds. The question is, how appealing are green bonds for investors? This question is relevant as green bonds have been applied in some countries to help them to achieve sustainable development goals as part of sustainable finance. This paper compares the green bond yield, and conventional bonds yield to see if there is a significant difference between them. This becomes important as the environmental aspect is not the only consideration for investors in choosing green bonds. However, they also pay attention to the return value. The analysis was carried out on the performance of green bonds against conventional bonds in Indonesia from 2018 to 2021 and compared green bonds’ yields with conventional bond yields with an independent sample t-test. The results show that Indonesian green bonds have an increased performance every year and green bond yields have no significant difference from conventional bond yields, where green bonds have slightly higher yields.