“Sustainability reporting is a crucial part of sustainable finance. The ratification of SPK by the Indonesian Institute of Accountants (IAI) aims to build a transparent, accountable reporting ecosystem aligned with international reporting frameworks,” Inarno Djajadi, Executive Chair of the Capital Market, Finance, Derivatives, and Carbon Exchange Supervision and Member of the OJK Board of Commissioners, noted in an official statement released on Tuesday in Jakarta.
The launch signals a joint commitment to achieving transparent and credible reporting consistent with global practices.
The SPK, comprising PSPK (Sustainability Disclosure Statements) 1 and 2, was approved by the Sustainability Standards Board of the IAI (DSK IAI) on July 1, 2025, and will take effect on January 1, 2027.
The standards adopt the IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2) issued by the International Sustainability Standards Board (ISSB), positioning Indonesia among 33 jurisdictions implementing the global sustainability reporting framework.
These disclosures are expected to create a uniform reporting system, allowing information from companies, especially listed issuers, to be more easily compared.
According to Inarno, robust sustainability standards can expand transparency on risks, opportunities, and strategies, enabling companies to better navigate future uncertainties, especially climate-related risks.
From an investor’s perspective, sustainability disclosures provide significant value for decision-making. OJK has supported sustainability reporting since 2017, progressively requiring financial institutions, issuers, and public companies to comply.
Readiness assessments have been conducted to ensure smooth implementation of IFRS S1 and S2 in Indonesia, which will also support revisions to OJK Regulation No. 51 of 2017 for more comprehensive disclosures.
At the same event, Destry Damayanti, Senior Deputy Governor of Bank Indonesia, called the launch a milestone in building a credible sustainability ecosystem.
She warned that climate change could threaten both the real sector and financial stability by raising credit risks, reducing asset values, and affecting economic resilience.
Arief Wibisono, Financial Services and Capital Market Expert Staff to the Minister of Finance, said the SPK marks a significant step in Indonesia’s reporting history and demonstrates readiness to meet evolving global demands.
He emphasized the ministry’s commitment to supporting SPK implementation, aligning it with green fiscal policies, sustainability incentives, and capacity building for sustainability-focused accountants.
Ardan Adiperdana, Chairman of the IAI National Board of Trustees, described SPK as a game-changer that will boost access to green financing, ease global due diligence, and strengthen Indonesian companies’ positions in sustainable global supply chains.
He noted that SPK is not just compliance but a long-term strategy for national economic resilience amid climate and global transformation challenges.
The issuance of SPK follows the SPK Roadmap published in December 2024, which outlines phased strategies for developing Indonesia’s sustainability disclosure ecosystem.
The IAI began its initiatives in 2020 by forming the Comprehensive Corporate Reporting Task Force (TF CCR) to promote awareness and prepare for adoption of relevant standards.
Following the enactment of the Financial Sector Strengthening and Development Law (P2SK) and the creation of the Sustainable Finance Committee, IAI’s initiatives are expected to influence policy frameworks in the sustainability era.
The IAI has also formed the Indonesia Sustainability Reporting Forum (ISRF) as a collaborative platform for regulators, companies, and stakeholders to address challenges and advance national sustainability reporting.
With an inclusive principle and advisory output, ISRF promotes inter-agency dialogue, national capacity development, and contributions to strategic policies such as national emission reduction targets and the creation of non-standard guidance for DSK IAI.
Related news: Prabowo signs regulation on bad debt forgiveness for small businesses
Translator: Baqir, Azis Kurmala
Editor: M Razi Rahman
Copyright © ANTARA 2025
