Launch of the study of 2019 Sustainability Reports of Public Companies in Indonesia

Launch of the study of 2019 Sustainability Reports of Public Companies in Indonesia

The Foundation for International Human Rights Reporting Standards (FIHRRST) has completed a study on the 2019 sustainability reports of all publicly listed companies in Indonesia.

The study’s objective is to assess the compliance of public companies’ sustainability reports with criteria for sustainability report included in the Financial Services Authority (OJK) Regulation No. 51/POJK.03/2017 regarding Sustainable Finance Implementation for financial services institution, issuers and publicly listed companies.

In addition, the study also presents the rating of the sustainability reports based on OJK Regulation No. 51/2017 criteria and certain selected criteria of GRI Standards. It promotes sustainability reporting as a critical tool to communicate companies’ commitment and initiative on aspects of environmental, social (including human rights) and good governance (ESG) and sustainability development goals (SDGs).

The study was launched on 10 November 2020 through a webinar which was attended by over 100 participants from assurance, finance, reassurance and other public companies along with governments and business organizations. The study and the launch were supported by the Financial Services Authority (OJK), Ministry of National Development Planning (Bappenas), Indonesia Stock Exchange (IDX) and United Nations Development Programme (UNDP).

The event was opened by Mr. Nur Sigit Warsidi, Head of the Capital Market Supervision 1B Department at OJK, who emphasized the urgency of the study. “The need for sustainability information is of growing importance. Environmental, social, and good governance (ESG) indicators are considered important indicators for business resilience. The global stock market has shown that companies with good ESG performance are better at maintaining their performance,” Mr. Warsidi stated.

Meanwhile, Mr. I Gede Nyoman Yetna, Director of Listing at IDX, added the importance of business to come and share a dialogue among them. IDX would always support any effort in promoting sustainable business. 

The launch then proceeded with a brief overview of the study results. Mr. Bahtiar Manurung, the head of the research team, highlighted a few key findings. On one hand, he praised the increased number of sustainability reports compared to last year, more than half of the reports have fulfilled the majority criteria of OJK Regulation No. 51/POJK.03/2017, and around four out of five reports have integrated SGDs. On the other hand, there is still much room for improvement. Only 10% of all public companies listed at IDX have published 2019 sustainability reports; less than a third of the reports were verified by independent parties; and just 9% of reports disclosed companies’ human rights policies.

Ms. Amalia Adininggar Widyasanti, expert staff to the Minister at Bappenas and the Head of the SDGs National Coordination Secretariat further underlined the findings. While the study is appreciated, it is hoped that the result would raise awareness of the importance of respecting the human rights of stakeholders.

As FIHRRST is always committed to encouraging companies to improve their sustainability reports, 5 out of the 18 best companies were invited to share their best practices so that others might learn.

PT Bumi Resources Tbk, represented by its VP Risk Management, GCG & Sustainability, Ms. Elly Slamet, spoke first. Second, PT Bank CIMB Niaga Tbk was represented by its Director of Compliance, Corporate Affairs, and Legal, Ms. Fransiska Oei. They were followed by Mr. Ignatius Wurwanto who spoke on the behalf of PT Indo Tambangraya Megah Tbk as Director of Sustainability & Risk Management. Representing PT Perusahaan Gas Negara Tbk, Mr. Anak Agung Raka Haryana spoke as Division Head of CSR. And finally, PT Indocement Tunggal Prakarsa Tbk was represented by its CSR Manager, Mr. Sahat Panggabean.

At the award ceremony of the event, Mr. Marzuki Darusman, the chair of FIHRRST, revealed and congratulated the top 18 companies. These awards are intended to foster competition between companies in writing meaningful sustainability reports. Moreover, it also encourages companies to improve their sustainability performance and contribution to the achievement of the SDGs.

During the ceremony, a special plea was made by Mr. Raymon Yonarto, Corporate Secretary of PT Bank Central Asia Tbk., as one of the four companies receiving A+ rating. “We hope this study can be carried out continuously,” he said, “to encourage many companies to improve the quality of their sustainability reports.”

Ms. Sophie Kemkhadze, Deputy Resident Representative, UNDP Indonesia, and Prof. Makarim Wibisono, Senior Advisor of PT AJA Sertifikasi Indonesia, then closed the event by hoping that it will inspire a greater discussion among stakeholders to find ways to maintain and improve our efforts in achieving the sustainability agenda.

The result of the study is accessible here.

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