Indonesia consults on ISSB-aligned sustainability reporting mandate
Indonesia is considering adopting globally aligned sustainability reporting, as the Otoritas Jasa Keuangan (OJK) launches a consultation on new rules that would require sustainability disclosures aligned with International Sustainability Standards Board (ISSB) standards.
The draft regulation would mandate sustainability reports for financial sector entities, issuers and public companies, based on national standards PSPK 1 and PSPK 2, which were issued in July 2025 by the Institute of Indonesia Chartered Accountants and aligned with IFRS S1 and IFRS S2. Comments are open until 13 March 2026.
The proposal introduces a phased implementation, beginning in 2027 with main board issuers, large banks and the stock exchange, before extending to additional listed entities, debt issuers and smaller banks through 2028 and 2029. In-scope organisations would also be required to develop transition plans addressing sustainability-related risks and opportunities, with mandatory independent assurance of reported information.
If adopted, the regulation would be a significant expansion of ISSB-aligned reporting in Southeast Asia, strengthening comparability for investors and reinforcing the case for following standardised disclosures with structured, digital sustainability disclosures.
The consultation draft, OJK press release, and RPOJK SF documentation can be found here (in Indonesian).
