Driving Youth Investment in Retail Green Sukuk: The Role of Environmental Knowledge and Green Lifestyles

Green sukuk currently account for only 29.9% of total global green sukuk emissions issued by the Indonesian government, indicating a lower participation rate from domestic investors compared to international ones. To increase domestic interest, the government should expand Retail Green Sukuk offerings and focus on targeting younger generations. This study aims to identify key preferences and environmental awareness factors influencing the investment intentions of young Indonesians, specifically Generations Y and Z, who currently dominate the national capital market. Primary data were collected through questionnaires distributed to 395 respondents in the Jakarta, Bogor, Depok, Tangerang, and Bekasi areas. The study employed descriptive analysis, factor analysis, and mean analysis. The results reveal that the main determinants of investment intention in Retail Green Sukuk among young people are: green investment intention (3.328), green lifestyle (3.295), sustainable investment intention (3.215), and environmental knowledge (3.187). The leading sub-factor in green investment interest is the perception that green investment products have a smaller negative environmental impact. In addition, respondents showed a strong preference for green investment sector projects related to sustainable natural resource management and waste-to- energy initiatives. The findings suggest that the Indonesian government should improve environmental literacy among the younger generation to foster greater awareness and drive interest in investing in Retail Green Sukuk.