873 Companies Meet Sustainability Reporting Requirements

The Indonesia Stock Exchange (IDX) reported that 873 companies, or 97 percent of all listed companies, have submitted their Sustainability Reporting through the IDX's information disclosure platform. This is in accordance with the Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017 on Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies, as well as OJK Circular No. 16/SEOJK.04/2021 regarding the Format and Content of Annual Reports for Issuers or Public Companies. "As of the 2023 Sustainability Reporting requirement due in 2024, 873 listed companies (97 percent) have submitted their sustainability reports via the information disclosure platform," said IDX Development Director Jeffrey Hendrik in Jakarta on Friday, January 10, 2025, as reported by Antara. In preparing these sustainability reports, Jeffrey emphasized that listed companies also need to report on the application of sustainable finance principles. From a sample of sustainability reports, he noted that there is still room for improvement in providing more transparent and accurate emissions data. "This emissions data can help investors make investment decisions that prioritize climate change," Jeffrey stated. He also mentioned that the main challenge for listed companies in preparing sustainability reports is obtaining ESG data, both quantitative and qualitative, from their activities. A survey conducted by IDX in collaboration with Mandiri Institute in 2024, involving 150 listed companies, identified several key challenges faced.

The challenges include a lack of quantitative data for reporting ESG performance, limited human resources, and costs associated with collecting ESG data and preparing ESG reports, such as consultant fees. The Indonesia Stock Exchange (IDX) remains committed to supporting the implementation of ESG in the capital market through various initiatives. This includes collaborating with organizations focused on ESG development to conduct outreach and education activities for listed companies, raising awareness, and providing technical assistance in sustainability reporting. In 2024, the IDX developed and implemented ESG Metric Reporting, which serves as an information disclosure tool for listed companies. When presenting the 2024 Sustainability Report in 2025, listed companies will provide information on Common ESG Core Metrics. The ESG metrics have been developed using standards that align with the ESG metrics reported in the Sustainability Report according to SEOJK 16, and they also incorporate the ASEAN Exchanges ESG Common Core Metric, which serves as the foundational reference for ESG Metric Reporting created collaboratively by exchanges in ASEAN.

Tag: Indonesia Stock Exchange OJK