Institutional work in making sustainability reporting mandatory in Indonesia through sustainable finance

Purpose - This study examines the institutional work that led to mandatory sustainability reporting in Indonesia, focusing on ALPHA’s role in introducing GRI-based standards and influencing regulatory evolution under POJK 51/2017. Design/methodology/approach - A qualitative approach involving 35 semi-structured interviews with corporations, regulators, NGOs, industry associations, consultants and academics was employed. Thematic analysis uncovered key patterns in the institutionalisation process. Findings - ALPHA’s institutional entrepreneurship, boundary work and normative framing spurred early sustainability reporting adoption. Cultural alignment framed reporting as a societal norm, facilitating regulatory acceptance and embedding transparency as a cornerstone of corporate governance under POJK 51/2017. Research limitations/implications - Findings are specific to Indonesia. Future research could explore comparative contexts or investigate how voluntary initiatives evolve into regulatory frameworks in other emerging markets. Practical implications - Policymakers can enhance regulatory frameworks by aligning them with cultural values, while corporations may view sustainability practices as strategic assets for legitimacy and reputation. Social implications - Aligning sustainability reporting with cultural values fosters corporate transparency and builds public trust. Originality/value - This study contributes to the institutional work framework by demonstrating how cultural alignment and agency facilitate the institutionalisation of sustainability reporting in an emerging market.