As climate concerns shape global finance, green bond financing, a debt instrument designed to fund environmentally friendly projects, has become pivotal for sustainable practices. Yet, its impact on firm performance, especially in emerging markets like Indonesia, is not well explored. This study evaluates the financial performance of 809 firms on the Indonesia Stock Market in 2021, focusing on whether firms issuing bonds, specifically green bonds, perform better. Key metrics include ROA, ROE, and NPM. Multiple regression was used to test the data. Results indicate that firms issuing bonds had a notably lower ROE of -2.002, attributed to incurred interest expenses reducing net income. Interestingly, green bond issuers didn’t demonstrate significantly superior performance compared to general bond issuers. In summary, while green bonds hold promises for fostering sustainability, their direct financial benefits in the Indonesian context remain unclear. The study emphasizes the need for broader evaluations beyond just financial outcomes and suggests deeper research into sector-specific impacts in Indonesia to refine global sustainable financing strategies.