Green sukuk issuance on sustainable transportation in Indonesia : a bibliometrics and system dynamics model

Abstract

The urgency of climate change mitigation and sustainable development has led to the emergence of innovative financial instruments such as green sukuk. This research explores the role of green sukuk in financing sustainable transportation in Indonesia by integrating bibliometric analysis and system dynamics modeling. The study aims to analyze the evolution of green sukuk literature globally and locally, identify knowledge gaps, and develop a dynamic policy model to assess the impact of green sukuk issuance on lowcarbon transportation projects. Using the Scopus database and VOSviewer, a bibliometric analysis reveals a growing academic interest in green sukuk since 2017, particularly in the context of environmental sustainability and Islamic finance. However, the literature remains limited in empirical studies in the green project, standarized taxonomies, and environmental impact measurement. Complementing this, a system dynamics model was developed using Vensim to simulate green sukuk financing on sustainable transportation, and emission avoided outcomes across railway infrastructure, electric vehicles, and Bus Rapid Mass Transmission systems, and sustainable transportation technology. The model demonstrates that green sukuk can serve as an effective policy instrument to support Indonesia’s net zero emissions target by 2060, especially when accompanied by policy design, institutional alignment, and increased issuance rates. Policy scenarios tested in the simulation indicate that prioritizing sustainable transportation infrastructure and enhancing the green sukuk ecosystem could significantly reduce carbon emissions and increase emission avoidance over the long term. This research contributes both theoretically and practically by enriching the green sukuk literature through a bibliometric lens and offering a system dynamics model for policymakers and financial institutions. The study recommends strategic policy interventions, capacity building, and transparent reporting to strengthen the role of green sukuk in Indonesia’s sustainable finance framework.