Green Investment and Sustainable Economic Growth: A Comparative Study of Singapore and Indonesia

nurul suhaila; Adnan Kapau Gani; Adaline Aleena

doi:10.33650/ijed.v5i1.15267

Green Investment and Sustainable Economic Growth: A Comparative Study of Singapore and Indonesia

DOI: https://doi.org/10.33650/ijed.v5i1.15267

Authors

(1) * nurul suhaila

(Universitas Mauhammadiyah Sumatra Utara)
        Indonesia
(2)  Adnan Kapau Gani   (Universitas Mauhammadiyah Sumatra Utara)
        Indonesia
(3)  Adaline Aleena   (Singapore University of Social Sciences)
        Singapore
(*) Corresponding Author

Abstract

Green investment has become a strategic instrument for promoting sustainable economic growth in the era of climate change, environmental degradation, and global sustainability commitments. This article examines the role of green investment in supporting sustainable economic growth through a comparative study of Singapore and Indonesia. Singapore represents a highly developed economy with strong financial governance, advanced sustainable finance regulation, and a clear national agenda through the Singapore Green Plan 2030. Indonesia, on the other hand, represents a large emerging economy with abundant natural resources, high development needs, and growing sustainable finance policies, including the Taxonomy for Indonesian Sustainable Finance. Using a qualitative-comparative approach based on policy analysis and literature review, this study explores how both countries mobilize green investment to support low-carbon transition, renewable energy, green finance, and sustainable development. The findings show that Singapore’s strength lies in its role as a regional green finance hub, regulatory readiness, and institutional capacity, while Indonesia’s strength lies in its large-scale green project potential, renewable energy resources, and domestic development demand. However, both countries face different challenges. Singapore faces limitations in land, energy resources, and domestic project scale, while Indonesia faces challenges related to financing gaps, regulatory coordination, fossil fuel dependence, and implementation capacity. This study concludes that green investment can accelerate sustainable economic growth when supported by strong governance, clear taxonomy, policy consistency, private-sector participation, and regional cooperation.

Keywords

Green Investment, Sustainable Economic Growth, Sustainable Finance.

References

Abdillah, M., Maksum, M., Alkaf, I., Salim, M. A., & Al-haqqoni, H. (2025). The Role of Sharia Economic Law in Advancing MSME Digitalization for SDGs in Indonesia : A Systematic Literature Review ( SLR ). 26(1), 1–16.

Afifah, A., Sari, D. N., Nurlaila, S., & Erlianti, D. (2026). Implementation of Food Security Policies in Supporting the Sustainable Development Goals (SDGs) in Indonesia: A Literature Study with Sustainable Development Goals (SDGs), especially the 2nd goal, namely Zero Hunger (Wardani, 2025). Where in 2015 as many as 193 member countries of the United Nations (UN) agreed on the 2030 agenda which includes 17 Sustainable Development Goals. The FAO document states that zero hunger has targets for ending hunger, achieving food security and improved nutrition, and the central government, local governments, and communities. In an effort to maintain resilience over the next 50 years, this was stated by the UN Secretary-General, António. 11 (April).

Agusnia Wati, T., Putri Anjani, H., Rukmiati, L. I., Fransiska Sinaga, L., Minallah, N., Nirawati, L., & Samsudin, A. (2022). Financial Management in the Company. Journal of Management and Business, 5(1), 7–8.

Al-Zu’bi, M., & Radovic, V. (2018). SDG11–Sustainable cities and communities: towards inclusive, safe, and resilient settlements. Emerald Publishing Limited. https://doi.org/10.1108/9781787569218

Alifa, N. R., Amani, A. R., & Zuhri, A. R. (2025). Empowering Human Capital Through Islamic Microfinance : A Pathway to Achieving SDGs in Indonesia. 5(3), 341–360.

Alotaibi, A., Saleh, W., Abdulbaqi, A., & Alosaimi, M. (2022). Health Research Priority Agenda for Ministry of Health, Kingdom of Saudi Arabia from 2020 to 2025. J Epidemiol Global Health, 12. https://doi.org/10.1007/s44197-022-00061-5

Brundtland, G. H. (1987). Our common future—call for action. Environ Conserv, 14. https://doi.org/10.1017/S0376892900016805

Creswell, J. W. (2016). Research Design: Qualitative, Quantitative, and Mixed Methods Approach (ed. Achmad Fawaid). Yogyakarta: Student Library.

Demirgüç-Kunt, A., Klapper, L., Singer, D., Ansar, S., & Hess, J. (2020). The Global Findex Database 2017: Measuring Financial Inclusion and Opportunities to Expand Access to and Use of Financial Services. World Bank Economic Review, 34(2018), S2–S8. https://doi.org/10.1093/wber/lhz013

Eko-syariah, P., & Mufid, M. (n.d.). Mangrove Fiqh: Formulation Of Coastal Environmental Fiqh. 7 (April 2017).

Fatma Muthia Kinanti, Garuda Wiko, & Devina Puspita Sari. (2023). Arbitration as an Alternative to Business Dispute Resolution in the Context of the Digital Economy. Pulpit Law, 35, 104–126. https://doi.org/10.22146/mh.v35i0.11398

Febrianto, A., & Lathiefah, N. N. (2025). Scarcity of Subsidized Fertilizer and Weather Factors: Implications for Agricultural Productivity and Food Security in Probolinggo Regency. Profit : Jurnal Kajian Ekonomi Dan Perbankan Syariah, 9(1), 87–95. https://doi.org/10.33650/profit.v9i1.11136

Fisher, R. A. (1992). Statistical methods for research workers. New York: Springer.

For, Q. A., Susanto, P. C., Yosepha, S. Y., Dirgantara, U., & Suryadarma, M. (2025). Education on Methods on How to Write Quantitative and Qualitative Articles for Postgraduate Students.

Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. Quart j Econ, 110. https://doi.org/10.2307/2118443

Hidayat, A. (n.d.). The Effect of MSME Fund Assistance on the Increase of MSMEs in North Sinjai. Muhammadiyah Islamic Religious Institute.

Intan, K. (2019). The market for skin care products has the potential to grow.

Janoušková, S., Hák, T., & Moldan, B. (2018). Global SDGs assessments: Helping or confusing indicators? Sustainability (Switzerland), 10(5), 1–14. https://doi.org/10.3390/su10051540

Kholil, A., & Zuardi, M. (2025). Optimizing Islamic Financial Instruments in Indonesia to Support SDGs : Maqashid Syariah Perspective. 26(1), 191–210.

Klein, M. (2020). SDG 15: life on land. Jean Monnet Sustainable Development Goals Network Policy Brief Series. Melbourne Australia: RMIT University Melbourne.

Leal Filho, W. (2020). Viewpoint: accelerating the implementation of the SDGs. International Journal of Sustainability in Higher Education, 21(3), 507–511. https://doi.org/10.1108/IJSHE-01-2020-0011

Margolang, N. (2018). Community Empowerment. Dedication: Journal of Community Engagement, I(2), 87–99. https://doi.org/10.31227/osf.io/weu8z

Maulidah, G., Christyodetaputri, J. H., & Malang, U. N. (2025). Synergy, International Journal of Education. (1), 26–40.

Muntoha, T. (2025). The Contribution Of Religious Moderation In Realizing The Sustainable Development Goals (Sdgs) In Indonesia. pp. 7(02), 420–432.

New Carolina, & Banu Witono. (2025). Performance Analysis of Service Quality, Trust and Digital Financial Services (Mobile Banking) on Customer Satisfaction of Conventional Banks in Surakarta. Al-Kharaj: Journal of Sharia Economics, Finance & Business, 7(2). https://doi.org/10.47467/alkharaj.v7i2.7169

Prasetyia, F., & Diendtara, K. (2011). Measurement of the Efficiency of Islamic Banking Based on Risk Management. Journal of Finance and Banking, 15(1), 119–129.

Ramadhan, D. S., Yuliani, T. W., Nur, A., & Munawaroh, L. (2027). Sustainable Tourism As A Catalyst For Achieving Sdgs In Indonesia. 91–99.

Rossi, F. M., Julnes, P. D. L., Zampella, A., & Rossi, F. M. (2025). Public Money & Management Editorial : Ensuring a sustainable world — building better systems for measuring , managing and reporting on the SDGs managing and reporting on the SDGs. Public Money & Management, 0962, 637–642. https://doi.org/10.1080/09540962.2025.2548677

Safitri, A. O., Yunianti, V. D., & Rostika, D. (2022). Efforts to Improve Quality Education in Indonesia: An Analysis of the Achievement of the Sustainable Development Goals (SDGs). Journal of Basicedu, 6(4), 7096–7106. https://doi.org/10.31004/basicedu.v6i4.3296

Subhan, M., Delvianti, S., & Indrawan, B. (2025). Challenges And Opportunities Of Islamic Banking In Supporting The Sdg Agenda In Indonesia Challenges And Opportunities Of Islamic Banking. 5(1), 122–139.

Susanti, E. (2013). Local Economic Development in the Agricultural Sector (Study on Pagelaran District, Malang Regency). Journal of Student Public Administration, Universitas Brawijaya, 1(4), 31–40.

Wang, G., Sadiq, M., Bashir, T., Jain, V., & Ahtsham, S. (2022). The dynamic association between different strategies of renewable energy sources and sustainable economic growth under SDGs. Energy Strategy Reviews, 42(April), 100886. https://doi.org/10.1016/j.esr.2022.100886

Yanti, P. Y., Kirya, K., & Meitriana, M. A. (2013). The Influence of Differentiation Strategies on Decisions. Department of Economics, Faculty of Economics and Business, Ganesha University of Education, Singaraja, 19(1), 101–111.

Yunarman, S., Gilang, M. I., Nurhidayati, S. W., & Praditya, A. D. (2025). The Urgency of Preventing Student Smoking in the School Environment to Support the Achievement of SDGs Goals in Indonesia.