Environmental disclosure in Indonesia: a study of manufacturing and mining companies

Indah Fajarini Sri Wahyuningrum, Hadrian Geri Djajadikerta, Terri Trireksani, Mochamad Arief Budihardjo and Sriningsih Sriningsih

Asian Journal of Accounting Research, 2026, vol. 11, issue 2, 218-232

Abstract: PurposeThis study investigated the environmental disclosure practices in Indonesia's manufacturing and mining sectors, examining the trends, quality and governance related drivers behind these disclosures.Design/methodology/approachInvolving a sample of 286 firm-year observations from companies listed on the Indonesia Stock Exchange (IDX) between 2019 and 2022, the study utilizes panel regression and robustness testing to evaluate the determinants of disclosure. It also disaggregates results by sector to validate empirical consistency.FindingsThe research findings indicate that environmental disclosure practices in manufacturing and mining sectors were relatively good, with an average score of 54.94%. Companies favor disclosures related to environmental management, certifications and compliance over operational impacts like pollution. Board independence, audit committee size and affiliation with Big Four accounting firms positively influence disclosure levels. Foreign ownership shows no significant effect.Research limitations/implicationsThis study provides critical insights into how environmentally sensitive industries, particularly manufacturing and mining, manage environmental transparency. The research highlights the need for stronger regulatory frameworks to standardize environmental reporting practices in Indonesia. Furthermore, it contributes to agency and stakeholder theories by demonstrating how governance structures affect environmental disclosure.Originality/valueWhile many previous studies have focused on general perspectives regarding environmental disclosure practices, the present study offered a sector-specific analysis focusing on industries with high environmental impacts. The novelty of this research lies in its comprehensive assessment of environmental disclosure practices in Indonesia's manufacturing and mining sectors industries that have been largely underexplored in this context.

Keywords: Environmental disclosure; Manufacturing; Mining; GRI; SASB; Corporate governance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ajarpp:ajar-11-2023-0367

DOI: 10.1108/AJAR-11-2023-0367

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