ESG Framework Under Indonesian Law

It is important that any business in Indonesia knows about the implementation of Environmental, Social, and Governance ("ESG") principles under the Indonesian law in commencing their operation. Having said that, investors shall evaluate and analyze the ESG aspects in their investment decision making process, to make sure the sustainability and ethical impact of the company's operation and business are in line with their values and long-term goals.

While there are certain sectors that incorporate ESG aspects into their day-to-day operations, the prevailing laws and regulations do not provide a comprehensive framework that uniformly applies to all business actors in Indonesia. This regulatory gap creates uncertainty for companies seeking to align their business practices with the global ESG standards.