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Vol. 3 No. 3 (2025)
Articles

Unlocking the Nexus Between Green Financing, Net Zero Roadmaps, and Science-Based Targets Initiatives in Indonesia's Infrastructure Sector

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  • Nathania Adella Panjaitan,
  • Yunieta Anny Nainggolan
Nathania Adella Panjaitan
Institut Teknologi Bandung
Yunieta Anny Nainggolan
Institut Teknologi Bandung
DOI: https://doi.org/10.58229/jims.v3i3.352

Published 2025-07-13

Keywords

  • Green Finance,
  • Science Based Targets Initiatives,
  • Infrastructure,
  • Financial Indicators,
  • Net-Zero,
  • Indonesia
    • ...More
    Less

How to Cite

Panjaitan, N. A., & Nainggolan , Y. A. (2025). Unlocking the Nexus Between Green Financing, Net Zero Roadmaps, and Science-Based Targets Initiatives in Indonesia’s Infrastructure Sector. Journal Integration of Management Studies, 3(3), 405–423. https://doi.org/10.58229/jims.v3i3.352

Abstract

Infrastructure sectors, especially energy, construction, and transport, are pivotal to Indonesia's net-zero transition due to their emissions intensity and capital demands. This study investigates how Science-Based Targets Initiatives (SBTi) disclosures and financial health affect green finance uptake. Using a mixed-method approach and logistic regression on 65 IDX-listed infrastructure firms within the 2023 fiscal year, this research incorporates firm-level data from annual and sustainability reports. It applies indicators including Return on Equity (ROE), Debt-to-Equity Ratio (DER), Cost of Debt (COD), and SBTi-aligned disclosure scores (CNZSTot). The results show that COD is the only significant financial predictor, while SBTi disclosure scores outperform net-zero roadmap availability in explaining green finance engagement. Disclosure gaps, limited third-party assurance, and sectoral inconsistencies reduce credibility. The findings imply that formal, verifiable climate disclosures aligned with science-based frameworks are pivotal in accessing the green capital, enhancing regulatory incentives, and disclosure standards also become essential to advance Indonesia's infrastructure decarbonization agenda.

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