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FORMOSA NEWS - Jambi - Indonesia’s Infrastructure Firms Improve Sustainability Reporting Quality, Study Finds. A 2026 study by Muhardi Achmad, Mukhzarudfa, Wiwik Tiswiyanti, and Ratih Kusumastuti from University of Jambi reveals steady progress in the quality of sustainability reporting among infrastructure companies listed on the Indonesia Stock Exchange (IDX) between 2020 and 2024. The research, published in the Asian Journal of Management Analytics, highlights how stronger environmental, social, and governance (ESG) disclosures are reshaping corporate transparency and accountability in Indonesia’s infrastructure sector an industry critical to national development.
Why Sustainability Reporting Matters
Sustainability reporting has become a central issue in global business as investors, regulators, and the public increasingly demand accountability beyond financial performance. Companies are now expected to balance profit with environmental stewardship and social responsibility commonly known as the “triple bottom line.” In Indonesia, this shift is particularly significant. Infrastructure companies play a major role in economic growth but also have substantial environmental and social impacts. Transparent ESG reporting allows stakeholders to evaluate how responsibly these companies operate. The University of Jambi research emphasizes that high-quality sustainability reports are not just formalities. They serve as strategic communication tools that build investor trust, improve corporate reputation, and align businesses with global sustainability standards.
How the Study Was Conducted
The researchers analyzed sustainability reports from six infrastructure companies listed on the Indonesia Stock Exchange. These firms were selected from a total population of 70 companies based on consistent publication of sustainability reports between 2020 and 2024. To evaluate reporting quality, the team used a structured scoring method based on ESG disclosure criteria aligned with the Global Reporting Initiative (GRI) Standards 2021. Each disclosure item was assessed using a dichotomous approach scored based on whether specific information was present or absent. This method allowed the researchers to quantify how comprehensively companies reported on environmental, social, and governance aspects over time.
Key Findings: Clear Progress Across ESG Metrics
The study documents a steady improvement in sustainability reporting quality across the five-year period:
Why Sustainability Reporting Matters
Sustainability reporting has become a central issue in global business as investors, regulators, and the public increasingly demand accountability beyond financial performance. Companies are now expected to balance profit with environmental stewardship and social responsibility commonly known as the “triple bottom line.” In Indonesia, this shift is particularly significant. Infrastructure companies play a major role in economic growth but also have substantial environmental and social impacts. Transparent ESG reporting allows stakeholders to evaluate how responsibly these companies operate. The University of Jambi research emphasizes that high-quality sustainability reports are not just formalities. They serve as strategic communication tools that build investor trust, improve corporate reputation, and align businesses with global sustainability standards.
How the Study Was Conducted
The researchers analyzed sustainability reports from six infrastructure companies listed on the Indonesia Stock Exchange. These firms were selected from a total population of 70 companies based on consistent publication of sustainability reports between 2020 and 2024. To evaluate reporting quality, the team used a structured scoring method based on ESG disclosure criteria aligned with the Global Reporting Initiative (GRI) Standards 2021. Each disclosure item was assessed using a dichotomous approach scored based on whether specific information was present or absent. This method allowed the researchers to quantify how comprehensively companies reported on environmental, social, and governance aspects over time.
Key Findings: Clear Progress Across ESG Metrics
The study documents a steady improvement in sustainability reporting quality across the five-year period:
- Overall ESG compliance increased significantly, reaching 54.31% by 2024.
- Average compliance rose from 39.35% in 2020 to 67.44% in 2024.
- Environmental disclosures showed the most notable improvement, especially after the adoption of GRI Standards 2021.
- Governance disclosures achieved the highest compliance levels, indicating strong progress in transparency and accountability.
- Social disclosures improved gradually, though at a slower pace compared to environmental and governance aspects.
These findings suggest that Indonesian infrastructure companies are becoming more aligned with international sustainability reporting practices.
Real-World Impact: What This Means for Business and Policy
Real-World Impact: What This Means for Business and Policy
The findings carry important implications for multiple stakeholders:
For companies: Improved ESG reporting strengthens credibility and competitiveness, especially in attracting global investors who prioritize sustainability.
For investors: More transparent and standardized reporting reduces uncertainty, enabling better decision-making and risk assessment.
For policymakers: The upward trend indicates that regulatory frameworks and sustainability guidelines are working, but further standardization and enforcement could accelerate progress.
For society: Better ESG disclosures mean increased accountability for environmental protection and social responsibility, particularly in a sector with significant public impact.
Author Profiles
Author Profiles
Muhardi Achmad – Researcher in accounting and sustainability reporting, University of Jambi.
Mukhzarudfa – Senior academic specializing in financial reporting and corporate governance, University of Jambi.
Wiwik Tiswiyanti – Lecturer and researcher in sustainability and business accountability, University of Jambi.
Ratih Kusumastuti – Academic expert in ESG practices and corporate transparency, University of Jambi.
Source
Achmad, M., Mukhzarudfa, Tiswiyanti, W., & Kusumastuti, R. (2026). The Quality of Sustainability Reporting by Infrastructure Sector Companies Listed on the Indonesia Stock Exchange for the 2020–2024 Period. Asian Journal of Management Analytics, Vol. 5(2), 323–336.
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