Determinants of Financial Performance in Indonesia’s Renewable Energy Sector: The Interplay of Green Financing, Capital Expenditure, and Leverage
DOI:
https://doi.org/10.61978/moneta.v4i2.1251Keywords:
green finance, green bond, green investment, capital expenditure, leverage, financial performanceAbstract
This research investigates how green bonds, green investment, capital expenditure, and leverage influence the financial performance of renewable energy firms listed on the Indonesia Stock Exchange between 2022 and 2024. The study is driven by the escalating challenge of global climate change, where the energy sector remains the largest source of greenhouse gas emissions. This situation has accelerated the transition toward renewable energy, accompanied by a consistent decline in return on assets among renewable energy companies. The novelty of this work lies in its simultaneous examination of four financial and sustainability variables within a single empirical framework applied to Indonesia’s renewable energy industry. The sample comprises 21 renewable energy firms selected through purposive sampling based on continuous listing status, availability of complete financial data, and sustainability disclosure during the observation period, observed over a three-year period. A quantitative method was employed, with panel data regression analysis conducted using EViews 13. The results of partial testing reveal that both green bonds and leverage exert a negative impact on financial performance, while green investment and capital expenditure show no significant effect. These findings underscore the short-term financial considerations associated with green financing and capital structure decisions during the energy transition, and offer empirical insights into the short-term financial implications of green financing and capital structure decisions in Indonesia’s renewable energy sector.
References
Abdullah, M., Sari, I. M., & Amelia N, Y. (2022). Pengaruh Belanja Modal Terhadap Kinerja Keuangan Pemerintah Daerah Kota Kendari. Jurnal Akuntansi Dan Keuangan (JAK), 7(1). https://doi.org/10.33772/jak-uho.v7i1.24546 DOI: https://doi.org/10.33772/jak-uho.v7i1.24546
Afriani, S., & Susyani, N. (2024). Pengaruh Capital Adequacy Ratio dan BOPO terhadap ROA dengan NIM sebagai Variabel Intervening. Jurnal Riset Ekonomi, 13(1). https://doi.org/10.35906/equili.v13i1.1899 DOI: https://doi.org/10.35906/equili.v13i1.1899
Al-Silefanee, R. (2024). The Role of Economic Complexity in Shaping the Energy-Growth Nexus. International Journal of Renewable Energy Development, 13(2), 256–269. https://doi.org/10.61435/ijred.2024.60055 DOI: https://doi.org/10.61435/ijred.2024.60055
Arwani, A., Masrur, M., & Muhammad, R. (2024). Profit Growth: Redefining Success with an Advanced ROA Model. Owner, 8(4), 4507–4523. https://doi.org/10.33395/owner.v8i4.2489 DOI: https://doi.org/10.33395/owner.v8i4.2489
Brigham, E. F., & Houston, J. F. (2021). Fundamentals of Financial Management (6th ed.). Cengage Learning.
Chatterji, D. (2024). Analyzing the Impact of Green Bonds on Bank Profitability. Energy Economics Letters, 14(3).
Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. Pacific Sociology Review, 18(1). https://doi.org/10.2307/1388226 DOI: https://doi.org/10.2307/1388226
Elkington, J. (1997). Cannibals with a Fork: The Three Bottom Lines of 21st Century Business. Cornerstone. https://doi.org/10.1002/tqem.3310080106 DOI: https://doi.org/10.1002/tqem.3310080106
Fachrozi, F., Mariana, M., & Santoso, E. E. (2024). Peran Environmental Policy sebagai Moderasi. Jesya, 8(1), 24–33. https://doi.org/10.36778/jesya.v8i1.1797 DOI: https://doi.org/10.36778/jesya.v8i1.1797
Fibriyanti, Y. V. (2022). Corporate Governance and Financial Performance. JHSS, 6(3), 345–348. https://doi.org/10.33751/jhss.v6i3.6490 DOI: https://doi.org/10.33751/jhss.v6i3.6490
Flammer, C. (2021). Corporate Green Bonds. Journal of Financial Economics, 142(2), 499–516. https://doi.org/10.1016/j.jfineco.2021.01.010 DOI: https://doi.org/10.1016/j.jfineco.2021.01.010
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman.
Han, C., & Yang, L. (2024). Financing Strategies for Green Development. Sustainability, 16(11). https://doi.org/10.3390/su16114338 DOI: https://doi.org/10.3390/su16114338
Hasibuan, D. H., & Tinambunan, M. S. M. (2024). Influence of Leverage on Financial Performance. Journal of Economics Finance and Management Studies. https://doi.org/10.47191/jefms/v7-i2-04 DOI: https://doi.org/10.47191/jefms/v7-i2-04
Hasibuan, F. U., & Ramadhan, T. (2025). Effect of Leverage on ROA. West Science Business and Management, 3(1), 116–123. https://doi.org/10.58812/wsbm.v3i01.1771 DOI: https://doi.org/10.58812/wsbm.v3i01.1771
Hasti, W. W., Maryani, M., & Makshun, A. (2022). Pengaruh Leverage terhadap Kinerja Keuangan. Reviu Akuntansi Manajemen Dan Bisnis, 2(2), 139–150. https://doi.org/10.35912/rambis.v2i2.1544 DOI: https://doi.org/10.35912/rambis.v2i2.1544
Hausfather, Z., & Friedlingstein, P. (2024). Analysis: Global CO2 Emissions Will Reach New High in 2024 Despite Slower Growth. Carbon Brief.
Hong, T., Hoang, V., Berrou, R., & Pham, L. (2022). Impact of Green Bond Issuance. SSRN. https://doi.org/10.2139/ssrn.4227810 DOI: https://doi.org/10.2139/ssrn.4227810
Huang, L., & Lei, Z. (2021). Environmental Regulation and Green Investment. Journal of Cleaner Production, 279. https://doi.org/10.1016/j.jclepro.2020.123560 DOI: https://doi.org/10.1016/j.jclepro.2020.123560
Indriastuti, M., & Chariri, A. (2021). Green Investment and CSR. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1960120 DOI: https://doi.org/10.1080/23311975.2021.1960120
Istiak, K., & Serletis, A. (2020). Risk, Uncertainty, and Leverage. Economic Modelling, 91, 257–273. https://doi.org/10.1016/j.econmod.2020.06.010 DOI: https://doi.org/10.1016/j.econmod.2020.06.010
Juwita, A., & Hasbi, K. (2024). Pengaruh Belanja Modal terhadap Kinerja Daerah. Jurnal EMT KITA, 9(1), 78–86. https://doi.org/10.35870/emt.v9i1.3315 DOI: https://doi.org/10.35870/emt.v9i1.3315
Kementerian Energi dan Sumber Daya Mineral. (2021). Pemerintah Optimistis EBT 23% Tahun 2025 Tercapai. Kementerian Energi dan Sumber Daya Mineral.
Kraus, A., & Litzenberger, R. H. (1973). Optimal Financial Leverage. Journal of Finance, 28(4), 911–922. https://doi.org/10.1111/j.1540-6261.1973.tb01415.x DOI: https://doi.org/10.1111/j.1540-6261.1973.tb01415.x
Kroy, M., & Desmiza. (2025). Effect of ROA and Current Ratio. Moneta, 3(4), 233–250. https://doi.org/10.61978/moneta.v3i4.726 DOI: https://doi.org/10.61978/moneta.v3i4.726
Lanskyaris, B., Irman, M., & Wati, Y. (2024). Capital Expenditure and Financial Performance. Bilancia, 8(3). https://doi.org/10.35145/bilancia.v8i3.4531 DOI: https://doi.org/10.35145/bilancia.v8i3.4531
Lidayat, O., & Adrianto, F. (2020). Capital Expenditure Effect. Economica, 9(1), 24–33. https://doi.org/10.22202/economica.2020.v9.i1.4034 DOI: https://doi.org/10.22202/economica.2020.v9.i1.4034
Lutfiana, D. E. S., & Hermanto, S. B. (2021). Profitabilitas dan Kinerja Keuangan. Jurnal Ilmu Dan Riset Akuntansi.
Mahendra, M. A., & Susilowati, E. (2022). Capital Expenditure dan Leverage. JOMB, 4(2), 920–929. https://doi.org/10.31539/jomb.v4i2.4718 DOI: https://doi.org/10.31539/jomb.v4i2.4718
Maulana, R., Arifin, H. R., & Wahono, B. (2020). Capital Expenditure dan CSR. Jurnal Riset Manajemen.
Ona Delang, T., & Rotua Sitorus, R. (2024). The Effect of Capital Expenditure on Regional Financial Performance with Local Original Income as an Intervening Variable in Districts and Cities in NTT Province in 2017–2021. Syntax Transformation, 5(3), 433. https://doi.org/10.46799/jst.v5i2.922 DOI: https://doi.org/10.46799/jst.v5i2.922
Paramita, V. S., & Ali, A. (2023). Can profitability moderate the impact of green investment, corporate social responsibility, and good corporate governance on the firm’s value on the Sri-Kehati index. International Journal of Financial Research, 4(4), 320–338. https://doi.org/10.47747/ijfr.v4i4.1604 DOI: https://doi.org/10.47747/ijfr.v4i4.1604
Penrose, E. T. (1959). The Theory of the Growth of the Firm. Wiley.
Pratami, A. A. S. D., & Yunita, I. (2025). Green Bonds and Financial Performance. Enrichment, 2(12). https://doi.org/10.55324/enrichment.v2i12.302 DOI: https://doi.org/10.55324/enrichment.v2i12.302
Rajeshkumar, G., & others. (2021). PLA Based Natural Fiber Composites. Journal of Cleaner Production, 310. https://doi.org/10.1016/j.jclepro.2021.127483 DOI: https://doi.org/10.1016/j.jclepro.2021.127483
Saenggo, A. T. P., & Widoretno, A. A. (2024). Green Accounting and Performance. JASa, 8(2), 420–432. https://doi.org/10.36555/jasa.v8i2.2552 DOI: https://doi.org/10.36555/jasa.v8i2.2552
Selvakumar, P., & Manjunath, T. (2025). Green Finance and Investment. IGI Global. https://doi.org/10.4018/979-8-3693-9750-3.ch008 DOI: https://doi.org/10.4018/979-8-3693-9750-3.ch008
Siagian, V., & others. (2023). Green Bond and Financial Performance. Repository UNAI.
Sutrisno. (2017). Manajemen Keuangan. Ekonsinia.
tanahair.net. (2024). Our World in Data: Sektor Energi Penyumbang Terbesar Emisi GRK Global, Ancam Krisis Iklim. Tanahair.Net.
Ullah, F., & others. (2025). Role of Green Bonds in Energy Transition. Energy. https://doi.org/10.1016/j.energy.2025.139635 DOI: https://doi.org/10.1016/j.energy.2025.139635
World Meteorological Organization. (2024). State of the Climate 2024 Update for COP29. World Meteorological Organization. https://wmo.int/publication-series/state-of-climate-2024-update-cop29
Yang, X. (2023). Green Finance in Sustainable Development. Resources Policy, 86. https://doi.org/10.1016/j.resourpol.2023.104219 DOI: https://doi.org/10.1016/j.resourpol.2023.104219
Ye, J., & Dela, E. (2023). Green Investment and CSR. Sustainability, 15(14). https://doi.org/10.3390/su151411218 DOI: https://doi.org/10.3390/su151411218
Yeow, K. E., & Ng, S.-H. (2021). Green Bonds and Performance. Managerial Finance, 47(10). https://doi.org/10.1108/MF-09-2020-0481 DOI: https://doi.org/10.1108/MF-09-2020-0481
Yuan, Y. (2024). Green Bond Issuance Impact. WEPM. https://doi.org/10.54097/s6hs3c79 DOI: https://doi.org/10.54097/s6hs3c79
Yulianti, S., & Ramli, R. (2025). Green Investment and Financial Performance. Jurnal Administrasi Bisnis.
Zhou, X., & Cui, Y. (2019). Green Bonds and CSR. Sustainability, 11(23). https://doi.org/10.3390/su11236881 DOI: https://doi.org/10.3390/su11236881
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Moneta : Journal of Economics and Finance
This work is licensed under a Creative Commons Attribution 4.0 International License.
