Finance

Lite

Challenges Faced by Indonesian Companies in Implementing ESG

Adi Ahdiat 22/07/2024 12:49 WIB

Bagikan URL has been copied

Memuat...

According to a survey by Mandiri Institute, many Indonesian companies face challenges in meeting ESG performance indicators.

Challenges Faced by Indonesian Companies in Implementing ESG (2023)

A Font Kecil
A Font Sedang
A Font Besar

Access single data

Challenges Faced by Indonesian Companies in Implementing ESG

Want to get more access to Data Stories with a more affordable price? Subscribe.

By subscribing, you join us in presenting quality data.

Get:

Premium Data Stories access
Comfortable reading without ads
Download data in XLS, PDF, and image format
Access to data source information

Basic

~~Rp100.000~~

Rp50.000/month

Professional

~~Rp100.000~~

Rp150.000/month

Institutional For organizations

We accept the following payments:

Some payment methods are still in the process of being activated.

Challenges Faced by Indonesian Companies in Implementing ESG (2023)

Download

Source

A Small
A Medium
A Bigger

According to a survey by Mandiri Institute, many Indonesian companies consider environmental, social, and governance (ESG) factors important.

ESG is a standard of business practices that sustainably considers environmental, social, and governance aspects.

Of the 162 listed companies surveyed, 95% implement ESG because it has become a corporate value.

However, many still face challenges in practice. The majority, or 64% of respondents, feel constrained in meeting ESG performance indicators.

More than half of the respondents also felt constrained by costs (60%), a lack of understanding of ESG (57%), and a lack of support from the government/regulators to implement ESG (55%).

Other challenges faced include a lack of data, developing performance assessment methods, determining performance targets, a lack of guidance or support from shareholders, and so on, as shown in the graph.

The Ministry of Finance, together with the United Nations Development Programme (UNDP), has published a reference document on ESG implementation titled "Environmental, Social, and Governance Framework" (LST) since November 2022.

The document states that there are 10 ESG standards that need to be met to achieve sustainable development goals, namely:

1. Pollution prevention and waste management;
2. Biodiversity conservation;
3. Natural resource management and energy efficiency;
4. Climate change mitigation and adaptation and disaster risk;
5. Employment and working conditions;
6. Diversity, equity, inclusion, and access;
7. Social interests;
8. Cultural heritage;
9. Leadership and governance; and
10. Risk and control.

The document also provides guidance on ESG implementation for project managers and businesses.

"The framework and its user guide are comprehensive and pragmatic. Besides being conceptual, both are equipped with how to implement them in the field. I am confident that both can be easily used by stakeholders," said Minister of Finance Sri Mulyani, as quoted from the document.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

Related Data

Indonesia's Waste Generation Decreases in 2025

57% of Indonesian Business Owners Didn't Sell Online in 2024, Here's the Reason

Households: Largest Contributors of Waste in Indonesia 2019-2025

Indonesia's Waste Dominated by Food Waste and Plastic 2019-2025

Permits of 28 Companies Revoked Following Sumatra Disaster, Most in North Sumatra

22 Forestry Companies Whose Licenses Were Revoked Following the Sumatra Disaster

Latest Data Stories

Horticultural Crop Sector PDRB and ADHB, 2013-2024 Technology & Telecommunications 24/01/2026, 14:26 WIB

Duck/Manila Duck Egg Production 2013-2024 Political 24/01/2026, 14:02 WIB

Grobogan Regency Government's Regional Expenditure Realization as of End of 2025 Economics & Macro 24/01/2026, 13:52 WIB

Financial Services Other Than Banking Sector PDRB (Gross Regional Domestic Product) 2013-2024 PDB 24/01/2026, 13:42 WIB

Prevalence of Insufficient Food Consumption in East Lombok Decreased by 1.14% in the Last 5 Years Demographics 24/01/2026, 13:07 WIB

Gold Prices Today, January 24, 2026, at Pegadaian: Antam Up Rp18,000 per Gram Mining 24/01/2026, 13:04 WIB

Download

Source

Challenges Faced by Indonesian Companies in Implementing ESG

Challenges Faced by Indonesian Companies in Implementing ESG

Tags

Related Data

Indonesia's Waste Generation Decreases in 2025

57% of Indonesian Business Owners Didn't Sell Online in 2024, Here's the Reason

Households: Largest Contributors of Waste in Indonesia 2019-2025

Indonesia's Waste Dominated by Food Waste and Plastic 2019-2025

Permits of 28 Companies Revoked Following Sumatra Disaster, Most in North Sumatra

22 Forestry Companies Whose Licenses Were Revoked Following the Sumatra Disaster

Latest Data Stories

Popular Data

Challenges Faced by Indonesian Companies in Implementing ESG

Challenges Faced by Indonesian Companies in Implementing ESG

Tags

Related Data

Indonesia's Waste Generation Decreases in 2025

57% of Indonesian Business Owners Didn't Sell Online in 2024, Here's the Reason

Households: Largest Contributors of Waste in Indonesia 2019-2025

Indonesia's Waste Dominated by Food Waste and Plastic 2019-2025

Permits of 28 Companies Revoked Following Sumatra Disaster, Most in North Sumatra

22 Forestry Companies Whose Licenses Were Revoked Following the Sumatra Disaster

Latest Data Stories

Trending Topics

Popular Data