ESG reporting has become a critical compliance and strategic priority for companies operating in Indonesia. Regulators, investors, and global partners now demand clear and reliable disclosures on environmental, social, and governance performance.
ESG reporting Indonesia is no longer limited to listed entities or large corporations. Expectations are expanding across industries and supply chains. This blog explains upcoming ESG reporting requirements, who must comply, key focus areas, and how Indonesian companies can prepare early to stay compliant and competitive.
What is ESG Reporting and Why Does It Matter in Indonesia
ESG reporting refers to structured disclosures on how a company manages environmental impact, social responsibility, and governance practices. In Indonesia, ESG reporting supports sustainable economic growth and improves investor confidence.
Companies that report ESG performance clearly:
- Build long-term stakeholder trust
- Improve access to global capital
- Reduce regulatory and operational risks
ESG Reporting Indonesia: Regulatory Direction for 2026
Indonesia is strengthening its sustainability framework step by step. ESG reporting requirements are expanding under the supervision of Otoritas Jasa Keuangan (OJK).
OJK Sustainability Reporting Framework
OJK Regulation No. 51/POJK.03/2017 already requires sustainability reporting for certain financial institutions and listed companies. By 2026, enforcement and reporting depth will increase.
Alignment With Global ESG Standards
Indonesia is aligning ESG reporting with:
- GRI Standards
- TCFD climate disclosures
- IFRS Sustainability Disclosure Standards
This alignment helps Indonesian companies remain globally competitive.
Who Must Comply With ESG Reporting in 2026
ESG reporting obligations in 2026 will apply to listed companies, financial institutions, and large businesses influenced by investors and global supply chains.
Public and Listed Companies
Listed entities must submit annual sustainability or ESG reports as part of regulatory filings.
Financial Institutions
Banks, insurers, and asset managers must disclose ESG risks, climate exposure, and governance practices.
Large and Export-Oriented Businesses
Even private companies face ESG pressure from global clients, lenders, and supply chains.
Key ESG Reporting Areas for Indonesian Companies
Indonesian companies must focus on environmental impact, social responsibility, and governance practices to meet regulatory expectations and stakeholder demands.
Environmental (E)
- Carbon emissions and energy use
- Waste management and resource efficiency
- Climate risk mitigation strategies
Social (S)
- Employee welfare and workplace safety
- Diversity, equity, and inclusion
- Community engagement and human rights
Governance (G)
- Board structure and independence
- Ethics, compliance, and anti-corruption
- Risk management and internal controls
ESG Reporting Indonesia: What Will Change by 2026
By 2026, ESG reporting in Indonesia will demand deeper disclosures, stronger data controls, and clear accountability from company leadership.
Increased Disclosure Depth
Companies must move beyond high-level statements to measurable data and KPIs.
Better Data Accuracy and Controls
Regulators expect consistent, verifiable, and auditable ESG information.
Stronger Accountability
Boards and senior management will hold direct responsibility for ESG disclosures.
Benefits of Early ESG Reporting Adoption
Companies that act early gain a strategic advantage.
- Improved investor and lender confidence
- Stronger brand reputation
- Lower compliance risk
- Better long-term resilience
Early ESG adoption also supports smoother regulatory transitions in 2026.
Common ESG Reporting Challenges in Indonesia
Many Indonesian companies struggle with data gaps, limited ESG expertise, evolving regulations, and the challenge of aligning local practices with global standards.
- Data Collection Gaps: Many organizations lack structured ESG data systems.
- Limited Internal Expertise: ESG reporting requires cross-functional coordination.
- Evolving Regulations: Keeping pace with changing ESG expectations can be complex.
How to Prepare for ESG Reporting in Indonesia
Start ESG preparation early by assessing gaps, setting clear governance, aligning with global standards, and building reliable data collection systems.
1. Conduct an ESG Gap Assessment
Review your current ESG practices against regulatory and industry expectations. Identify missing data, weak controls, and policy gaps that may affect compliance and reporting accuracy.
2. Build Internal ESG Governance
Define clear ESG ownership across leadership, compliance, and operations teams. Set accountability to ensure consistent decision-making, implementation, and oversight of ESG initiatives.
3. Use Recognized ESG Frameworks
Adopt frameworks like GRI, TCFD, or IFRS to structure ESG disclosures. These standards improve report clarity, comparability, and credibility for investors and regulators.
4. Ensure Data Accuracy
Establish strong data controls and documentation processes. Accurate, traceable ESG data supports audits, reduces compliance risks, and strengthens stakeholder confidence.
Conclusion
ESG reporting Indonesia will become more structured, data-driven, and enforceable by 2026. Companies that prepare early will reduce compliance risks and gain market credibility. Strong ESG reporting is no longer optional. It is a strategic requirement for sustainable growth in Indonesia’s evolving regulatory and business environment.