Monetery Policy and Sustainable Development: A Review Of Indonesia’s Policies As A Driver of Green Investment

Abstract

This research explores the role of monetary policy in promoting sustainable development and green investment in Indonesia. Using a descriptive qualitative approach, this research analyzes Bank Indonesia's environmental initiatives. Instruments such as interest rate setting, green bond issuance, and green financing incentives are the main focus of the policies implemented. The results show that Bank Indonesia's policies are effective in supporting the transition to a sustainable economy, despite facing challenges such as lack of market understanding and global economic fluctuations. With cross-stakeholder collaboration and financial innovation, green investment is expected to become a major catalyst for inclusive and sustainable economic development.