Conformity of Green Fintech Law with the Principles of Sustainable Investment in Indonesian Law

Master of Law Program, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia

^* Corresponding author: biantara.albab@umy.ac.id

Abstract

This study examines the compatibility of green fintech law with sustainable investment principles in the context of Indonesian law. Using a normative-legal approach, this study highlights the urgency of regulatory reform for sharia-based fintech and green finance, which still face fragmentation and lack of coordination among authorities. It was found that instruments such as green sukuk and green banking have the potential to support sustainable development, but their optimal implementation is hindered by legal uncertainty, low digital literacy, and limited access for SMEs to green financing. This research recommends the establishment of a comprehensive legal framework, the integration of regulatory technology (RegTech), the provision of fiscal incentives, and the implementation of regulatory sandboxes to test sustainable financial innovations. This is one of the first doctrinal studies to assess green fintech’s conformity with ESG and SDGs in Indonesian law these findings are expected to strengthen the green fintech ecosystem in Indonesia and drive the transition toward an environmentally friendly and inclusive digital economy.