Entrepreneurship-Based Green Finance Model: Optimizing the Role of Regional-Owned Enterprises (BUMD) in Achieving Jakarta’s Net Zero Emission 2060 Target

Abstract

This study aims to examine and analyze the effects of willingness to innovate, proactive attitude, and risk-taking propensity on green finance and sustainability performance among Regional-Owned Enterprises (BUMD) in DKI Jakarta. The research employs a quantitative method using Structural Equation Modeling with Partial Least Squares (SEM-PLS) analysis, based on primary survey data collected from 23 BUMDs in Jakarta in 2025. The findings reveal that willingness to innovate and proactive attitude positively contribute to strengthening green finance; however, only the proactive attitude consistently enhances sustainability performance. Conversely, the willingness to take risks shows a negative effect on green finance and an insignificant impact on sustainability performance. Furthermore, green finance exerts a positive, though not yet significant, influence on sustainability performance. These findings underscore the need for operational strategies such as strengthening green innovation, establishing sustainability teams, implementing green risk management, and developing sustainability reports as integral components of transparent and accountable governance. Such strategies are essential to reinforce the strategic role of BUMDs in supporting the transition toward a green economy and achieving Jakarta’s Net Zero Emission 2060 target.