Indonesia’s Vice-Minister of Finance, Professor Anggito Abimanyu, underscored the importance of sustainability reporting in supporting the transformation toward a sustainable economy.
According to him, the concept of sustainability now extends beyond environmental concerns to encompass social justice and government accountability.
Therefore, the government bears a crucial responsibility in providing strong regulations and clear reporting mechanisms to offer businesses direction and certainty in adopting responsible practices.
Vice-Minister Abimanyu conveyed these points in his opening remarks at the 4th Biennial Emerging Scholars Colloquium and Conference on Accounting and Accountability in Emerging Economies (AAEE), held on Thursday, Jun. 26, 2025, at the Sanur Prama Sanur Beach Hotel, Bali.
He noted that the role of international organizations is weakening amidst increasingly complex global dynamics.
Additionally, the rise of protectionist policies by individual nations has further heightened inter-country tensions.
The impact of this shifting global landscape on economic activity is evident in the projected slowdown of global economic growth, from 3.2 percent in 2024 to 2.8 percent in 2025.
“This situation reinforces the urgency of identifying development strategies that not only boost economic growth but are also sustainable and resilient to external shocks,” he said.
Sustainability reporting, he emphasized, plays a vital role in promoting more transparent and inclusive economic growth.
Through such reports, companies can demonstrate their commitment to green practices and social responsibility while building public trust.
Transparent reporting can also attract investors, particularly those focused on Environmental, Social, and Governance (ESG) principles.
This is aligned with the projected global ESG assets reaching USD 53 trillion by 2025.
In Indonesia, a number of regulations have been introduced to support sustainability reporting practices, including Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Institutions, Issuers, and Public Companies; Circular Letter OJK No. 16/SEOJK.04/2021 on the Form and Content of Annual Reports for Issuers or Public Companies; and Law No. 4/2023 on the Development and Strengthening of the Financial Sector (UU PPSK).
However, implementation on the ground still faces several challenges.
One issue is the absence of uniform reporting standards, leading companies to adopt various frameworks such as the Global Reporting Initiative (GRI), Sustainable Development Goals (SDGs) 2030, the Sustainability Accounting Standards Board (SASB), or even combinations of multiple standards.
Another challenge is the lack of mandatory assurance for sustainability reports.
Yet such assurance is critical in enhancing the reliability, accountability, and credibility of these reports.
The most widely adopted assurance standard is AA1000AS (Accountability 1000 Assurance Standard), which comprehensively assesses an organization’s transparency and sustainability performance.
Vice-Minister Abimanyu also emphasized the crucial role of higher education institutions in fostering a mature ecosystem for sustainability reporting.
One such initiative is the Institute of Certified Sustainability Practitioners (ICSP), which offers professional certification programs, including CSRS (Certified Sustainability Reporting Specialist) and CSRA (Certified Sustainability Reporting Assurer).
These educational and certification programs aim to produce competent and accountable professionals capable of advancing the quality of sustainability reporting in Indonesia.
He concluded by emphasizing the need for synergy among government, businesses, professionals, and higher education institutions in building a robust sustainability reporting ecosystem.
Such an ecosystem, he noted, would serve as a strong foundation for Indonesia’s economic growth that is not only sustainable but also resilient in the face of global political and economic volatility.
“This vision aligns with the SDGs to create a prosperous, inclusive, and environmentally conscious world,” he added.
Reporter: FEB UGM/Kurnia Ekaptiningrum
Author: Agung Nugroho
Post-editor: Lintang Andwyna