GREEN INVESTMENT TRANSFORMATION OF GENERATION Z IN THE INDONESIAN CAPITAL MARKET: INTERNAL–EXTERNAL STRATEGIC ANALYSIS THROUGH IFE, EFE, AND PESTEL TO SUPPORT THE SDGs
DOI:
https://doi.org/10.5281/zenodo.23322072Keywords:
green investment, Generation Z, Indonesian capital market, PESTEL, IFE, EFE, SDGsAbstract
The transformation of the global business environment has shifted the role of capital markets from merely a means of raising funds to a strategic instrument for sustainable development. In Indonesia, the growth of young retail investors, the digitalization of investment services, and the increasing attention to ESG ( Environmental, Social, and Governance ) open up significant opportunities for the development of green investment . This study aims to analyze the strategic position of the Indonesian capital market in encouraging Generation Z-based green investment through a strategic management approach that integrates internal analysis, external PESTEL analysis, the IFE ( Internal Factor Evaluation ) matrix, the EFE ( External Factor Evaluation ) matrix, and its relationship to the Sustainable Development Goals (SDGs).The research employed a strategic case study method with secondary data sourced from regulators, stock exchanges, international institutions, and academic literature. Strategic factors were weighted through expert judgment . The results indicate that the main strengths of the Indonesian capital market lie in the growth of domestic investors, the demographic dividend, the digitalization of services, and the support of sustainable financial policies. Externally, the greatest opportunities come from global trends in ESG investing, the need for national green financing, and the development of fintech investment.An IFE score of 2.80 and an EFE score of 3.08 place the Indonesian capital market in the Growth and Build position , indicating a feasible expansionary strategy. Key research recommendations include developing green investment products, improving ESG literacy, standardizing issuer disclosures, and optimizing digital platforms to attract young investors. This research confirms that the Indonesian capital market has the potential to become a pillar of national sustainable financing while supporting United Nations SDG 13 ( Climate Action ), SDG 8 ( Economic Growth ), and SDG 9 ( Innovation ).
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