Indonesia's 2025 KESGI Banking Assessment: Green Economy Aspects Remain Low
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The Katadata Insight Center (KIC) assessment in the Katadata Environmental, Social, and Governance Index (KESGI) 2025 shows that the median KESGI score in the banking sector is 47.64 out of a 0-100 point scale.
The KESGI 2025 assessed the sustainability performance of 46 banking companies that had issued sustainability reports as of June 2025.
According to the compilers, the environmental aspect had the highest median score, at 59.41. "This indicates that banking companies have performed quite well in reporting environment-related indicators," wrote KIC in the KESGI 2025 report.
The social aspect ranked second with a median score of 58.16, followed by governance with a median score of 55.57.
"Meanwhile, the performance related to green credit disbursement is still dominated by large banks, so the score related to the green economy aspect is still relatively low (33.17)," said KIC.
KESGI is an independent assessment to measure the sustainability performance of public companies listed on the Indonesia Stock Exchange (BEI), as well as several state-owned enterprises (SOEs) that make significant contributions to the national economy.
The assessment is conducted on three main aspects: environmental, social, and governance. The basis for the KESGI 2025 assessment is the data availability from the 2024 Sustainability Report or 2024 Annual Report, publicly accessible through the company's official website as of June 2025.
The sustainability reports prepared by the companies refer to the Global Reporting Initiative (GRI) and follow the regulations of POJK No. 51/2017 concerning the Implementation of Sustainable Finance and SEOJK No. 16/2021 concerning the Form and Content of Annual Reports of Issuers or Public Companies.
The complete KIC report, Katadata ESG Index 2025, can be downloaded here.
"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."
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