Abstract
Infrastructure is crucial to the development process and is intimately related to productivity, economic growth, and well-being. Infrastructure also plays a vital role in environmental contamination and degradation which leads to high financial cost to recover. This article aims to highlight how a green bond is a potential tool to be used as an alternative source of financing for infrastructure development which can also ensure environmental sustainability in Indonesia. Using a literature review from various available sources, green bond positively impacts environmental sustainability. Indonesia is on the right track in directing future development to maintain the balance between economic growth and environmental sustainability. The green bond ecosystem also has been established to support the growing market. The green bond is a promising financing tool in Indonesia due to its attention to the environmental aspect, the established framework and regulation, and its opportunity to finance potential green projects available in Indonesia.
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