Sustainability Report Practices in Indonesia: Context, Policy, and Readability

Iman Harymawan, Fajar Kristanto Gautama Putra, Tanaya Devi Kemala Agni and Khairul Anuar Kamarudin
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Iman Harymawan: Universitas Airlangga, Indonesia,
Fajar Kristanto Gautama Putra: Universitas Airlangga, Indonesia,
Tanaya Devi Kemala Agni: Universitas Airlangga, Indonesia,
Khairul Anuar Kamarudin: University of Wollongong, Dubai, United Arab Emirates.

International Journal of Energy Economics and Policy, 2020, vol. 10, issue 3, 438-443

Abstract: Considering sustainability disclosure become one important issue, while still there no universal agreement for the guidance, this study aims to examine Indonesia s Sustainability Disclosure trend using GRI as quantity dimension, KLD for the quality, and readability and PROPER to measure how well they communicate. This study uses a sample of 224 firm-year observation from 2013-2017 based on GRI database. Descriptive analytic employed to figure disclosure trend in general, year to year, and industry base, and Pearson to explain correlation between measurements. There are three important issue discovered in this research. First, Indonesia s sustainability disclosure is generally low but mixed among different proxies by the year, and SIC 2 as the best quantity disclosure and SIC 4 provides readable report. Second, we found a significant positive correlation between quantity and quality sustainability disclosure. Third, the result reveals an indication that PROPER award rely on corporate s environmental risk disclosure. This study limited to public company that issue Sustainability Disclosure hence sample relatively small. This research provides insight for firms to improve quantity and quality of firm s Sustainability Disclosure as development of trends is not optimized.

Keywords: sustainability report; corporate social responsibility; Indonesia (search for similar items in EconPapers)
JEL-codes: Q51 Q56 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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