This is the Trend of ESG Investment in Indonesia until 2021

The trend of Environment, Social, and Governance (ESG) based investments in Indonesia continues to grow.

According to data from the Indonesia Stock Exchange (BEI), when first launched in 2014, there was only one ESG mutual fund product with assets under management (AUM) of Rp38 billion.

In subsequent years, the number of products and AUM experienced an upward trend, as shown in the graph.

In March 2022, BEI Director of Development Hasan Fawzi announced that the AUM of ESG mutual funds in 2021 reached Rp3.5 trillion. However, this AUM figure was later revised to Rp2.3 trillion.

The revision was announced by Saptono Adi Junarso, Head of the Listed Company Services and Development Division of BEI, in his presentation at The 13th Indonesian Institute for Corporate Directorship-Corporate Governance Virtual Conference (IICD-CG) on May 20, 2022.

"Why did the AUM decrease? Because one fairly large mutual fund, due to a regulatory conflict, was temporarily dissolved, resulting in a decrease," Saptono explained at the event.

"But if everything is summed up, the (AUM of ESG mutual funds) still grew," he continued.

Saptono noted that of the 15 ESG-based mutual fund products in Indonesia in 2021, the largest AUM was held by the BNI AM ETF MSCI ESG Leaders Indonesia Index Mutual Fund, at Rp626.2 billion.

(Also Read: Many Citizens Invest in Companies that Implement ESG)