On April 2025, the Environment, Social and Governance (“ESG”) practice team of METALAW have contributed to the 3rd Edition of The Legal 500 ESG Comparative Guide specifically in the Indonesia Chapter, published by The Legal 500 which has been analysing law firms across the world.
Under this publication, METALAW provides an overview of ESG matters in Indonesia, which was covered through 22 questions in a Q&A format provided by Sylvie Gallage-Alwis of Signature Litigation AARPI.
This publication answers 22 topics describing the current condition of ESG in Indonesia, which includes questions regarding specific ESG problems, compliances, and trends. The issues discussed in this publication mainly focuses on:
- Carbon emision related matters, among others, statutory duty to implement net zero business strategies, regulations on carbon offset requirements, test cases on undeliverable net zero strategies and contribution to global levels of greenhouse gases (GHGs);
- Climate and environmental matters, among others, biodiversity requirements for new projects, reportation of water usage, forever chemicals (such as Perfluoroalkyl and Polyfluoroalkyl Substances/PFAs);
- Whether there are any mandatory provisions on waste hierarchy, recycling for producers, distributors, or retailers, and the deterring and punishment over plastic pollution;
- Issues of ESG in the workplace, encompassing the requirement to ensure equality, diversity, and inclusion (“EDI”), workplace welfare and treatment by employers against their employees, living wages;
- Due diligence requirements and cases brought against companies for adverse impact on human rights or the environment in the supply chain, by parties in the supply chain and host communities;
- Issues over unsubstantiated sustainability claims in relation to products, services, and wide sustainability commitments;
- Statutory duties on directors to oversee environmental and social impacts, and test cases for misleading information on environmental and social impacts;
- Reporting requirements under the applicable law over sustainable investment criteria, managing climate related financial risks, energy consumption, EDI and/or gender pay gaps, modern day slavery in supply chain; and
- The expectation over trends and developments of ESG in Indonesia, and its potential rise in court dispute or enforcement actions.
The publication of this Comparative Guide of The Legal 500 by METALAW ESG Practice Team provides answers to the current frequently asked questions in relation to the ESG in Indonesia. METALAW has also contributed to several other articles which discussed Indonesia’s current trend and development of law in METALAW – Conventus Law.
For further information, please contact:
MetaLAW, Legal & Tax Consultant, Jakarta, Indonesia
general@metalaw.id
