As Indonesian companies strive to improve their ESG (Environmental, social, and governance) reporting initiatives and align with global standards, Kadin Indonesia together with Mioying Financial Technology (MioTech), one of the leading providers of ESG data and technology solutions have initiated the ESG Intelligence Forum on 21 August 2024.
The forum offers important insights into the evolving sustainability reporting landscape. The transition from local to global ESG frameworks presents challenges and opportunities for companies looking to strengthen competitiveness and attract international investment.
The ESG reporting environment in Indonesia is evolving rapidly, with regulatory bodies such as the OJK (Financial Services Authority) playing an important role in shaping disclosure requirements.
The current regulations provide a solid foundation for ESG reporting, but also leave room for companies to adopt additional international standards. Forward-thinking companies may choose to enhance their reporting practices by incorporating globally recognised frameworks, particularly in areas such as detailed greenhouse gas emissions disclosures.
Key benefits of improved ESG reporting for Indonesian businesses include:
- Strengthened resilience and efficiency in global supply chains, ensuring sustainable practices and mitigating supply chain risks.
- Improved access to global capital markets.
- Improved risk management capabilities.
- Increased stakeholder trust and brand value.
- Better positioned to deal with future regulatory changes.
Carbon emissions measurement and reporting is an important component of an ESG strategy. As global investors increasingly prioritise climate-related disclosures, Indonesian companies that proactively measure and report their emissions can gain a competitive advantage. This data not only supports risk management, but also helps identify opportunities for operational efficiency and cost reduction.
Developing a comprehensive ESG strategy goes beyond compliance. It includes:
- Identifying important and specific ESG risks and opportunities.
- Integrating ESG factors into the company's decision-making process.
- Setting measurable targets and key performance indicators (KPIs).
- Implementing robust data collection and management systems.