Assessing the Impact of Green Financing on Corporate Value in the New and Renewable Energy Sector in Indonesia

Karnawi Kamar, Septi Wifasari, Loso Judijanto, Puguh Setiawan, Didin Fatihudin

Abstract

This study investigates the impact of green financing on corporate value within Indonesia’s renewable energy sector. The primary aim is to examine how green financing affects companies’ financial performance and market valuation when implementing sustainable practices. Employing a library-based research approach, data were systematically collected from books, peer-reviewed journals, and industry reports addressing green financing, corporate value, and renewable energy. The findings indicate that green financing provides financial advantages, enhances corporate reputation, and attracts investors focused on sustainability, thereby contributing to higher corporate value. Nevertheless, challenges such as complex certification procedures and regulatory uncertainties limit smaller firms’ ability to fully leverage green financing opportunities. These results underscore the importance of more supportive policies and accessible financing mechanisms to promote sustainable growth.

 

Keywords: Green Financing, Corporate Value, Renewable Energy Sector, Sustainable Investment, Indonesia.

 

DOI https://doi.org/10.55463/issn.1674-2974.53.1.4


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