IDX Promotes ESG Principles in the Capital Market
March 2025
The Indonesia Stock Exchange (IDX) recently integrated its new environmental, social, and governance (ESG) reporting method into the Exchange’s Information Disclosure System for Listed Companies (SPE-IDXnet). Through Form E020, related to annual reports and sustainability reports, this development promotes the implementation of ESG principles in the Indonesian capital market, and supports the enhancement of governance and transparency of ESG data from companies listed on the IDX.
The new feature is aligned with OJK Regulation Number 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies, as well as OJK Circular Letter Number 16/SEOJK.04/2021 on the Form and Content of Annual Reports of Issuers or Public Companies. The SPE-IDXnet now also contains disclosures related to human rights assessments, including human rights policies, as well as policies on child labor and/or forced labor, which are absent in the OJK regulation.
The launch of ESG reporting is expected to support the advancement of the Indonesian capital market with a focus on sustainability, foster better integration of the ASEAN Exchanges, enhance the visibility of ASEAN as a collective asset class, and strengthen ASEAN as an attractive investment destination for ASEAN and global investors.
The number of listed companies in Indonesia publishing sustainability reports continues to rise. As of December 2024, a total of 882 listed companies, representing 94% of all companies listed on IDX in December 2024, had published sustainability reports for the 2023 reporting year.
Investors in the capital market are increasingly considering the sustainability and ESG aspects of listed companies before making investment decisions. With ESG reporting, it is expected that the number, quality, and transparency of ESG-related data disclosed by listed companies will improve. Ultimately, ESG reporting can assist investors in making decisions that comprehensively prioritize sustainability.
Moores Rowland Indonesia’s Foundation for International Human Rights Reporting Standards (FIHRRST) has conducted a sustainability report study since 2019, which includes indicators for assessing human rights, long before the existence of SPE-IDXnet.
Moores Rowland Indonesia’s expertise helps to protect clients from legal battles with the government, severe penalties, and negative public relations through its comprehensive legal support for PDP, tax audits and sustainability report assurance.
Take the hassle and fear of errors in your personal or company reports, and feel confident when signing off on them, with Moores Rowland Indonesia.
