The quality of sustainability reporting among property and real estate companies listed on the Indonesia Stock Exchange (IDX) improved significantly between 2020 and 2024, although major gaps remain in environmental and social disclosures. The findings were revealed in a study conducted by Reny Ernitasari, Mukhzarudfa, Ratih Kusumastuti, and Wiwik Tiswiyanti from Universitas Jambi. Published in 2026 in the International Journal of Management Analytics (IJMA), the research analyzed the quality of Environmental, Social, and Governance (ESG) reporting among eight property and real estate companies listed on the IDX during the 2020–2024 period.
The study highlights that the property and real estate sector has substantial environmental and social impacts. Construction activities, land development, and building operations contribute to energy consumption, carbon emissions, water use, and social impacts on surrounding communities. As global sustainability standards continue to strengthen through initiatives such as the Sustainable Development Goals (SDGs) and the Paris Climate Agreement, companies are facing growing pressure to improve transparency and sustainability accountability.
Researchers explain that Indonesia’s capital market regulator has also intensified ESG oversight. The Indonesia Stock Exchange (IDX), in collaboration with Morningstar Sustainalytics, now classifies companies based on ESG risk scores ranging from negligible risk to severe risk. This regulatory pressure has encouraged listed companies, including those in the property sector, to improve the quality of sustainability disclosures.
According to the study, sustainability reporting in Indonesia’s property sector remains relatively underdeveloped compared to industries such as mining, banking, and manufacturing. Many property companies are still in the early stages of adopting international reporting standards such as the Global Reporting Initiative (GRI).
The research adopted Institutional Theory as its analytical framework, focusing on three types of institutional pressure influencing corporate ESG reporting practices:
- coercive pressure from government and IDX regulations,
- mimetic pressure from peer companies,
- and normative pressure from professional standards and industry expectations.
The study used content analysis on sustainability reports published by eight property and real estate companies listed on the IDX. Researchers measured ESG disclosure quality using 114 Global Reporting Initiative (GRI) indicators consisting of:
- 31 environmental indicators,
- 35 social indicators,
- and 48 governance indicators.
Disclosure quality was then categorized into four levels based on IDX/Sustainalytics guidelines:
- Very Good (>80% disclosure),
- Good (60–80%),
- Sufficient (40–60%),
- and Low (<40%).
The findings revealed that the governance dimension consistently recorded the highest disclosure quality among all ESG dimensions. The average Governance (G) score reached approximately 79.73 percent, while the Environmental (E) dimension averaged 42.50 percent and the Social (S) dimension averaged 38.33 percent.
Researchers concluded that Indonesian property companies are relatively more mature in governance reporting because governance disclosure has been institutionalized earlier through capital market regulations. In contrast, environmental and social disclosures are still developing and remain largely voluntary.
Among the companies analyzed, Bumi Serpong Damai Tbk achieved the highest ESG disclosure quality in 2024 with a score of 83.8 percent, placing the company in the “Very Good” category. Adhi Commuter Properti Tbk showed the most dramatic improvement, rising from 35 percent in 2020 to 82.9 percent in 2023–2024.
The study identified three major reporting patterns within Indonesia’s property sector:
- progressive improvement among companies consistently increasing ESG quality,
- leap improvements caused by rapid adoption of ESG standards,
- and stagnation followed by delayed reporting improvement.
Companies such as Duta Pertiwi Tbk and Bumi Serpong Damai Tbk demonstrated steady improvements across all ESG dimensions, while Adhi Commuter Properti Tbk experienced rapid growth due to stronger institutional pressure and management transformation. Meanwhile, companies such as Triniti Dinamik Tbk and Perintis Triniti Properti Tbk remained stagnant for several years before modest improvements appeared in 2024.
One of the study’s most important findings concerns the large imbalance between governance disclosure and environmental-social disclosure. Several companies achieved governance disclosure scores above 90 percent while environmental and social scores remained below 40 percent.
Researchers argue that this imbalance reflects the early stage of ESG adoption in developing countries, where companies tend to prioritize compliance-driven governance reporting over value-driven sustainability practices that address real environmental and social impacts.
The study also found moderate convergence in ESG reporting quality across the sector. The standard deviation of ESG disclosure scores declined slightly between 2020 and 2024, indicating that lower-performing companies gradually improved their reporting quality due to increasing regulatory and institutional pressure.
According to the researchers, companies with ESG disclosure scores above 80 percent can be interpreted as having stronger ESG management capacity and lower ESG risk exposure under the Sustainalytics framework. In contrast, companies with disclosure scores below 40 percent remain vulnerable to higher ESG risks due to limited environmental and social management systems.
The study recommends that regulators such as the Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK) strengthen incentives and regulations encouraging better environmental and social disclosure quality, not merely governance reporting. Researchers also urge property companies to improve internal ESG capabilities, particularly in measuring operational environmental and social impacts.
The findings are considered important for investors, regulators, and companies because ESG reporting quality is increasingly used as a benchmark for sustainable investment decisions and long-term corporate risk assessment in global financial markets.
Author Profiles
- Reny Ernitasari- Universitas Jambi, Indonesia.
- Mukhzarudfa- Universitas Jambi, Indonesia.
- Ratih Kusumastuti- Universitas Jambi, Indonesia.
- Wiwik Tiswiyanti - Universitas Jambi, Indonesia.
Research Source
Ernitasari, R., Mukhzarudfa, Kusumastuti, R., & Tiswiyanti, W. (2026). The Quality of Sustainability Reporting in the Property and Real Estate Sector Listed on the Indonesian Stock Exchange From 2020 to 2024. International Journal of Management Analytics (IJMA), Vol. 4 No. 2, 319–328.
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