Of the top 100 companies listed on the Jakarta Stock Exchange (IDX), only 30% of companies make a Sustainability Report (SR) (Ernst & Young 2016). Whereas from 2000 to the present (2017), only 97 companies have reported through the Global Report Initiative (GRI).
GRI's Country Program Manager in Indonesia, Bob Eko Kurniawan explained that there was pressure from investors, especially foreign investors, so that the listed company would make a sustainability report. He explained that outside investors had begun to be educated in terms of sustainability. "They will prioritize their sustainability program, then they will invest their money," Bob explained.
By making this sustainability report, companies will find it easier to get investors. Its reputation will also be better for the company, so investors will be more interested in them.
In addition, companies are easier to obtain a license to operate from socio-economic communities, because of the more structured Corporate Social Responsibility (CSR) program. The company will also get more public approval and not interfere in its operations.
The government itself since 1999 has made many regulations regarding CSR. Initially only State-Owned Enterprises (BUMN) were required under the name of the Partnership and Community Development Program (PKBL), but then continued to the private company.
As for SR, the government has not yet made the regulation, until the Financial Services Authority (OJK) through POJK No. 51 dated July 27, 2017 issued the first regulation concerning the SR. "I think the government makes it not only for the sake of the report, but for the sake of running the company to sustain it," explained Bob.
Indonesia's ranking is indeed greater than South East Asia, Latin America and Africa, because Indonesia's population is quite large and its corporate level is more advanced. But the number is still struggling compared to Europe and America.
(Translated from 2017 edition of Majalah CSR magazine website, all copyrights belongs to www.majalahcsr.id)
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