ESG Reporting And Corporate Social Responsibility Obligations In Indonesia.
Environmental, Social and Governance (ESG) obligations in Indonesia are closely linked to corporate social responsibility (CSR) requirements under Indonesian law. While ESG regulation continues to evolve, companies operating in Indonesia should understand the existing legal framework and prepare for further developments in sustainable finance regulation.
ESG Reporting Requirements in Indonesia
Under Indonesia’s Company Law, CSR implementation is mandatory only for companies whose business activities are related to natural resources.
Government Regulation No. 47 of 2012 regarding the Social and Environmental Responsibilities of Limited Liability Companies (“GR 47/2012”) provides that CSR programs must be implemented by a company’s Board of Directors based on the company’s annual work plan, which must be approved by the Board of Commissioners or the General Meeting of Shareholders (GMS), as required under the company’s articles of association.
The implementation of CSR must then be disclosed in the Board of Directors’ annual report, which is submitted to the GMS for approval.
Specific sustainability and reporting obligations apply to public companies and financial institutions. These are regulated by Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) under OJK Regulation No 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies (“OJK Reg 51/2017”)
OJK Reg 51/2017 requires public companies and financial services providers to implement CSR and subsequently report on their CSR implementation to the OJK, and make those reports publicly avaialable.
ESG Developments in Indonesia
Indonesia’s ESG regulatory framework has continued to develop gradually, with no sweeping legislative changes to date. Nevertheless, the Indonesian government continues its effort to embed ESG principles within the national legal framework.
This is reflected in the issuance of several recent policies, including in the financial sector, where the OJK has issued Version 3 of the Indonesia Taxonomy for Sustainable Finance, demonstrating the sector’s commitment to contributing to Indonesia’s Sustainable Development Goals (SDGs).
The OJK is also preparing a new regulation on sustainable finance to replace OJK Reg 51/2017, with the objective of aligning Indonesia’s sustainable finance framework with evolving domestic and international ESG standards.
As ESG expectations continue to expand, companies doing business in Indonesia should monitor regulatory developments and review their governance, sustainability reporting and compliance frameworks to ensure they remain aligned with emerging requirements.
Read the full Indonesia chapter of the Chambers and Partners Corporate Governance 2026 Global Practice Guide.
Download the PDF version of the chapter.
Further Reading
Indonesia Enacts New Criminal Procedure Code: Key Implications for Investigations and Enforcement
This article is adapted from the Indonesia chapter of the 2026 Chambers and Partners Corporate Governance Global Practice Guide, authored by SSEK Law Firm founding partner Ira A. Eddymurthy, senior associate A. Charlie R. Malessy, and associates Medita F. Siregar and Ahmad Ramadinan Saptara.
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