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Sustainability Report Practices in Indonesia: Context, Policy, and Readability

Author

Listed:
  • Iman Harymawan

    (Universitas Airlangga, Indonesia,)

  • Fajar Kristanto Gautama Putra

    (Universitas Airlangga, Indonesia,)

  • Tanaya Devi Kemala Agni

    (Universitas Airlangga, Indonesia,)

  • Khairul Anuar Kamarudin

    (University of Wollongong, Dubai, United Arab Emirates.)

Abstract

Considering sustainability disclosure become one important issue, while still there no universal agreement for the guidance, this study aims to examine Indonesia s Sustainability Disclosure trend using GRI as quantity dimension, KLD for the quality, and readability and PROPER to measure how well they communicate. This study uses a sample of 224 firm-year observation from 2013-2017 based on GRI database. Descriptive analytic employed to figure disclosure trend in general, year to year, and industry base, and Pearson to explain correlation between measurements. There are three important issue discovered in this research. First, Indonesia s sustainability disclosure is generally low but mixed among different proxies by the year, and SIC 2 as the best quantity disclosure and SIC 4 provides readable report. Second, we found a significant positive correlation between quantity and quality sustainability disclosure. Third, the result reveals an indication that PROPER award rely on corporate s environmental risk disclosure. This study limited to public company that issue Sustainability Disclosure hence sample relatively small. This research provides insight for firms to improve quantity and quality of firm s Sustainability Disclosure as development of trends is not optimized.

Suggested Citation

  • Iman Harymawan & Fajar Kristanto Gautama Putra & Tanaya Devi Kemala Agni & Khairul Anuar Kamarudin, 2020. "Sustainability Report Practices in Indonesia: Context, Policy, and Readability," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 438-443.
    • Handle: RePEc:eco:journ2:2020-03-55
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    References listed on IDEAS

    as
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    Cited by:

    1. Iman Harymawan & Fajar Kristanto Gautama Putra & Bayu Arie Fianto & Wan Adibah Wan Ismail, 2021. "Financially Distressed Firms: Environmental, Social, and Governance Reporting in Indonesia," Sustainability, MDPI, vol. 13(18), pages 1-18, September.
    2. Eka Sari Ayuningtyas & Iman Harymawan, 2022. "Risk Management Committee and Textual Risk Disclosure," Risks, MDPI, vol. 10(2), pages 1-15, February.
    3. Iman Harymawan & Mohammad Nasih & Dian Agustia & Fajar Kristanto Gautama Putra & Hadrian Geri Djajadikerta, 2022. "Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1186-1202, September.

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    More about this item

    Keywords

    sustainability report; corporate social responsibility; Indonesia;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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