Municipal Green Sukuk as an Alternative Financing Instrument for Urban Waste Management A SWOT-TOWS Analysis in Jakarta
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Abstract
Urban waste management requires substantial and long-term financing to support sustainable infrastructure and the transition toward a circular economy. This study aims to assess the potential implementation of municipal green sukuk as an alternative financing instrument for waste management infrastructure in Jakarta. A qualitative case study approach was employed using document analysis of regional planning and financial documents, relevant regulations, green finance frameworks, and scientific literature. Data were analyzed using SWOT through the Internal Factor Analysis Summary (IFAS) and External Factor Analysis Summary (EFAS), followed by TOWS analysis to formulate implementation strategies. The results show that Jakarta is positioned in Quadrant I, with internal and external score differences of +0.40 and +0.56, respectively. The main internal strengths are strong fiscal capacity and own-source revenue, while the key external opportunities include the growth of the global ESG market and international demand for Sharia-compliant investments. However, implementation is constrained by the absence of a regional green sukuk regulatory framework, limited institutional capacity, an underdeveloped monitoring, reporting, and verification (MRV) system, and an insufficiently documented project pipeline. The SO strategy is identified as the priority, supported by strategies addressing regulatory, institutional, governance, and project readiness. The study concludes that municipal green sukuk has potential as an alternative financing instrument, provided that implementation is pursued gradually with adequate regulatory and institutional preparation.
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