RI Launches Standards For Disclosure Of Sustainability

JAKARTA - Indonesia has launched a Sustainability Disclosure Standard (SPK) which is carried out through cooperation between Bank Indonesia, the Ministry of Finance and the Financial Services Authority (OJK).

"Sutainability reporting is an important part of sustainability finance. The approval of the SPK by IAI is carried out in order to build a transparent, accountable reporting ecosystem and in line with the international reporting framework," said Executive Chairperson of the Capital Market, Finance, Derivative and Carbon Exchange Supervisory and Member of the OJK Board of Commissioners Inarno Djajadi as reported by ANTARA, Tuesday, August 12.

This launch is a form of affirmation of a collaborative commitment to realize transparent, credible, and in line with global practices.

SPK consisting of PSPK (SPK Statement) 1 and PSPK 2, has been ratified by the Indonesian Accounting Association Sustainability Standard Council (DSK IAI) on July 1, 2025 and will be effective from January 1, 2027.

This standard adopts IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2) published by the International Sustainability Standards Board (ISSB), making Indonesia part of 33 jurisdictions that have implemented a global sustainability reporting framework.

Information transparency compiled based on global standards is considered to provide a reporting standard framework, so that the information submitted by the company, especially issuers in the capital market, can be compared to one another.

According to Inarno, good sustainability standards can expand transparency coverage related to risks, opportunities, and sustainability strategies. That way, companies can take proactive steps to deal with future uncertainties, particularly regarding the risks of climate change, and greater sustainability challenges.

Reviewing from the investor side and relevant stakeholders, the disclosure of sustainability is said to be an added value for investment decision making.

"OJK has always supported the issuance of sustainability standards, and since 2017, OJK has obliged gradual sustainability reporting for financial service institutions, issuers, and public companies in Indonesia," said Inarno.

It is also stated that it has conducted a study to see the readiness of issuers and public companies in implementing sustainability reporting, especially in the implementation of S1 and S2 IFRS in Indonesia. This is done to support the revision of POJK Number 51 of 2017, especially regarding the implementation of more comprehensive sustainability disclosure for business actors.

On the same occasion, Bank Indonesia's Senior Deputy, Destry Damayanti said that this launch was an important momentum to build a credible sustainability ecosystem. Climate change is considered to have become a real threat to the real and financial sectors, thus triggering an increase in credit risk, a decrease in asset value, to affect economic and financial stability.

Expert Staff to the Minister of Finance for Financial Services and Capital Market Arief Wibisono added that the launch of the SPK was an important milestone in the history of reporting in Indonesia, reflecting the professional progress and readiness of Indonesia to answer the challenges of changing times.

His party is committed to always supporting the implementation of the SPK as a whole, given the alignment with strengthening green fiscal policies, sustainability incentives, and developing the capacity of the accounting profession related to sustainability.

"The Ministry of Finance invites all stakeholders to jointly oversee the implementation of the SPK so that it is not merely an administrative obligation, but is really a driving force for transformation towards a more sustainable future," he said.

For the Chairman of the IAI National Management Board Ardan Adiperdana, this standard is game-changer because it will accelerate access to green financing, facilitate the global due diligence process, and position Indonesian companies as key players in a sustainable global supply chain.

SPK is called not only about compliance, but a long-term strategy to strengthen national economic resilience amid the climate crisis and global transformation.

The issuance of the SPK is an implementation of the SPK Roadmap published by IAI in December 2024. The map outlines a gradual development strategy and recommendations to strengthen the sustainability disclosure ecosystem with strategies that include proposed regulatory coordination, capacity building, guarantee readiness, and alignment with international standards.

The initiative to disclose sustainability has begun since IAI formed a Task Force Comprehensive Corporate Reporting (TF CCR) on December 15, 2020.

This task force was formed to raise public awareness about the development of the issue of sustainability reporting, as well as prepare a plan for the adoption of relevant standards for Indonesia.

Seiring Undang-Undang Penguatan dan Pengembangan Sektor Keuangan (P2SK) disahkan dan terbentuknya Komite Keuangan Berkelanjutan, inisiatif IAI diharapkan menjadi masukan penting bagi kerangka kebijakan Indonesia di era sustainability.

DPN IAI juga membentuk Indonesia Sustainability Reporting Forum (ISRF) untuk mendukung DPSK dan DSK IAI.

ISRF merupakan wadah kolektif bagi entitas pelapor, regulator, dan berbagai pemangku kepentingan untuk berdiskusi, mengidentifikasi isu penerapan, serta memperkuat ekosistem pelaporan keberlanjutan di Indonesia.

Dengan prinsip inklusif dan output bersifat advisory, ISRF mendorong dialog lintas lembaga, pengembangan kapasitas nasional, dan kontribusi pada kebijakan strategis seperti target penurunan emisi nasional dan penyusunan non-standard guidance ke DSK IAI.

As the Financial Sector Strengthening and Development Law (P2SK) is ratified and the formation of the Sustainable Financial Committee, the IAI initiative is expected to be an important input for the Indonesian policy framework in the era of sustainability.

DPN IAI also formed the Indonesia Sustainability Reporting Forum (ISRF) to support DPSK and DSK IAI.

ISRF is a collective forum for reporting entities, regulators, and various stakeholders to discuss, identify issues of application, and strengthen the sustainability reporting ecosystem in Indonesia.

With the principle of inclusive and output being advisory, ISRF encourages cross-institutional dialogue, national capacity development, and contributions to strategic policies such as national emission reduction targets and the preparation of non-standard guidance to IAI DSK.