Public companies and sustainability through regulatory reform in Indonesia

Abstract

ABSTRACT Sustainability reporting aims to increase transparency with regard to companies’ efforts to achieve sustainability goals. Imposing regulatory obligations for environmental sustainability reporting and performance should induce companies’ compliance, alongside encouraging initiatives for more environment-friendly business activity. This study analyses the regulations in Indonesia on environmental sustainability, and furthermore their implementation based on the Liquid 45 (‘LQ45’) publicly listed companies’ initiatives and actions that are reported in their annual and sustainability reports. Suggestions are then made on how the laws and regulations can be modified to improve companies’ compliance with their environmental sustainability duties.