Environmental, social, and governance (ESG) in Indonesia: Analyzing sustainability reports

Syarifuddin Syarifuddin ,Lim Ying Zhee ,Uruqul Nadhif Dzakiy ,Abdul Fadli Kalaloi ,MAHIR PRADANA

doi:10.24294/jipd10103

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Environmental, social, and governance (ESG) in Indonesia: Analyzing sustainability reports

Syarifuddin Syarifuddin

Lim Ying Zhee

Uruqul Nadhif Dzakiy

Abdul Fadli Kalaloi

MAHIR PRADANA

Journal of Infrastructure Policy and Development 2025, 9(4), 10103; https://doi.org/10.24294/jipd10103

Submitted：05 Nov 2024

Accepted：12 Dec 2024

Published：18 Dec 2025

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Abstract

This study provides a descriptive analysis of data extracted from Environmental, Social, and Governance (ESG) and sustainability reports across diverse industries and regions. Using a sample of corporate reports over the past five years, the study aims to summarize and interpret trends, variability, and distribution patterns in key ESG indicators. Data was collected and standardized to ensure consistency, then categorized into environmental, social, and governance dimensions to facilitate detailed analysis. Descriptive statistics were computed to summarize trends, while cross-sectional and trend analyses highlight sectoral and regional variations. Results reveal common and emergent ESG practices, along with areas where disclosure and performance vary significantly across sectors. The findings underscore the critical need for standardized ESG reporting frameworks to enhance comparability and transparency in corporate sustainability practices. This study's main goal is to examine how Environmental, Social, and Governance (ESG) issues are disclosed in sustainability reports that Indonesian businesses publish. The purpose of this study is to determine sectoral disparities, appraise the influence of ESG practices on investment decisions and business reputation, and examine the scope and caliber of ESG activities in relation to worldwide norms. This study provides stakeholders with valuable insights into current ESG reporting practices and identifies gaps for potential improvement in alignment with evolving regulatory standards and stakeholder expectations.

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References

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14. Uzliawati, L., Taqi, M., Muchlish, M., & Kalbuana, N. (2023). The transformation of corporate reputation driven by corporate governance, environmental social, and governance (ESG), business activity, and profitability in Indonesia. Review of Economic and Finance, 21, 1295-1305.
15. Widodo, A., Rubiyanti, N., & Madiawati, P. N. (2024). Navigating the Digital Revolution in the Food Industry: Consumers’ Perceived Environmental Risks and Purchasing Decisions. Journal of Ecohumanism, 3(6), 509–528. https://doi.org/10.62754/joe.v3i6.4024
16. Winarno, A., & Silvianita, A. (2024). The role of socially responsible human resource management in improving performance: An analysis of subjective well-being as a mediating variable. Qubahan Academic Journal, 4(3), 454–468. https://doi.org/10.48161/qaj.v4n3a878
17. Yawika, M. K., & Handayani, S. (2019). The Effect of ESG Performance on Economic Performance in the High Profile Industry in Indonesia. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, 7(2). https://doi.org/10.15640/jibe.v7n2a12
18. Yuliarni, N., Hurriyati, R., Disman, D., et al. (2023). Marketing strategy of ecotourism in Uzbekistan and Indonesia. Journal of Eastern European and Central Asian Research (JEECAR), 10(4), 638–649. https://doi.org/10.15549/jeecar.v10i4.1359
19. Zulazli, H., Raja Suzana, R. K., Zainudin, A., Abang Feizal, A. I., & Mokhtarrudin, A. (2017). The Impact of Social Innovation on an Enterprise Success: Item Validation. Pertanika Journal of Social sciences & humanities, 25.

Achyarsyah, M., Hermana, G. N., Gorbyandi, M. R., et al. (2024). Worldwide Research Trend on Steel Casting: A Visualization and Future Research Directions. Recent Innovations in Chemical Engineering (Formerly Recent Patents on Chemical Engineering), 17(4), 333–340. https://doi.org/10.2174/0124055204304611240709042627

Alfan, A. T., Harahap, N., & ikhsan Harahap, M. (2023). Socioeconomic Development Sustainability Analysis: A Review of Corporate CSR and ESG in Indonesia. International Journal of Economics Development Research (IJEDR), 4(3), 1627-1651.

Garcia, A. S., & Orsato, R. J. (2020). Testing the institutional difference hypothesis: A study about environmental, social, governance, and financial performance. Business Strategy and the Environment, 29(8), 3261–3272. Portico. https://doi.org/10.1002/bse.2570

Hendrayati, H., Atrisia, M. I., & Disman, S. (2019). The Innovation of Digital Dockless Bike-Sharing for City's Air Quality as Sustainable Transportation. Journal of Engineering Science and Technology, 14(6), pp. 3327-3336.

Henisz, W., Koller, T., & Nuttall, R. (2019). Five ways that ESG creates value.

Ilmalhaq, A., Pradana, M., & Rubiyanti, N. (2024). Sustainable Consumption on Marketing Concept: A Bibliometric Analysis (2003-2023). International Journal of Sustainable Development and Planning, 19(9), 3595–3601. https://doi.org/10.18280/ijsdp.190927

Nabila, F. S., Pradana, M., Silvianita, A., et al. (2024). A study of financial literacy in developing countries: A bibliometric analysis. Journal of Infrastructure, Policy and Development, 8(9), 6881. https://doi.org/10.24294/jipd.v8i9.6881

Nareswari, N., Tarczyńska-Łuniewska, M., & Hashfi, R. U. A. (2023). Analysis of Environmental, Social, and Governance Performance in Indonesia: Role of ESG on Corporate Performance. Procedia Computer Science, 225, 1748–1756. https://doi.org/10.1016/j.procs.2023.10.164

Prawira Negara, A. B., Pradana, M., Silvianita, A., et al. (2024). Optimizing transformational leadership and knowledge management as keys to innovation. Journal of Infrastructure, Policy and Development, 8(4), 4071. https://doi.org/10.24294/jipd.v8i4.4071

Nurim, Y., Harjanto, N., Prabawati, P. I., et al. (2022). Stable Financial Performance as the Antecedent of ESG Activity and Firm Value Relationship: An Evidence from Indonesia. Quantitative Analysis of Social and Financial Market Development, 85–102. https://doi.org/10.1108/s1571-038620220000030006

Qoyum, A., Sakti, M. R. P., Thaker, H. M. T., et al. (2022). Does the islamic label indicate good environmental, social, and governance (ESG) performance? Evidence from sharia-compliant firms in Indonesia and Malaysia. Borsa Istanbul Review, 22(2), 306–320. https://doi.org/10.1016/j.bir.2021.06.001

Rose, C. (2007). Does female board representation influence firm performance? The Danish evidence. Corporate Governance: An International Review, 15(2), 404–413. Portico. https://doi.org/10.1111/j.1467-8683.2007.00570.x

Trisnowati, Y., Achsani, N. A., Sembel, R., et al. (2022). The Effect of ESG Score, Financial Performance, and Macroeconomics on Stock Returns during the Pandemic Era in Indonesia. International Journal of Energy Economics and Policy, 12(4), 166–172. https://doi.org/10.32479/ijeep.13212

Uzliawati, L., Taqi, M., Muchlish, M., & Kalbuana, N. (2023). The transformation of corporate reputation driven by corporate governance, environmental social, and governance (ESG), business activity, and profitability in Indonesia. Review of Economic and Finance, 21, 1295-1305.

Widodo, A., Rubiyanti, N., & Madiawati, P. N. (2024). Navigating the Digital Revolution in the Food Industry: Consumers’ Perceived Environmental Risks and Purchasing Decisions. Journal of Ecohumanism, 3(6), 509–528. https://doi.org/10.62754/joe.v3i6.4024

Winarno, A., & Silvianita, A. (2024). The role of socially responsible human resource management in improving performance: An analysis of subjective well-being as a mediating variable. Qubahan Academic Journal, 4(3), 454–468. https://doi.org/10.48161/qaj.v4n3a878

Yawika, M. K., & Handayani, S. (2019). The Effect of ESG Performance on Economic Performance in the High Profile Industry in Indonesia. JOURNAL OF INTERNATIONAL BUSINESS AND ECONOMICS, 7(2). https://doi.org/10.15640/jibe.v7n2a12

Yuliarni, N., Hurriyati, R., Disman, D., et al. (2023). Marketing strategy of ecotourism in Uzbekistan and Indonesia. Journal of Eastern European and Central Asian Research (JEECAR), 10(4), 638–649. https://doi.org/10.15549/jeecar.v10i4.1359

Zulazli, H., Raja Suzana, R. K., Zainudin, A., Abang Feizal, A. I., & Mokhtarrudin, A. (2017). The Impact of Social Innovation on an Enterprise Success: Item Validation. Pertanika Journal of Social sciences & humanities, 25.

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