The Indonesian Institute of Certified Public Accountants (IAPI) has\nproposed the use of a single international standard as the official\nreference for sustainability assurance.<\/p>\n
IAPI Chairman Tarkosunaryo added that his organisation is also\ncalling for equivalent supervisory infrastructure readiness for all\nservice providers before the assurance obligation comes into force.<\/p>\n
He assessed that Indonesia\u2019s sustainability reporting ecosystem\ncurrently does not yet have the same level of maturity as the financial\nreporting ecosystem.<\/p>\n
\u201cAs a result, there is a risk of misstatement, bias, and misleading\nsustainability claims or greenwashing. This condition has the potential\nto erode the trust of investors and other stakeholders in the\nsustainability information published by companies,\u201d said Tarkosunaryo at\nthe Business Morning Forum in Jakarta on Wednesday, 26 August 2026.<\/p>\n
His organisation is of the view that three standards resulting from\ninternational adoption need to be established as official references in\nIndonesia. First, SAKb 5000, which adopts the International Standards on\nSustainability Assurance (ISSA) 5000 as the sole sustainability\nassurance standard.<\/p>\n
Second, quality management standards as the foundation for\nimplementation, namely Quality Management Standard (SMM) 1 and SMM 2\n(adopting International Standards on Quality Management\/ISQM 1 and ISQM\n2).<\/p>\n
Third, ethical standards for sustainability assurance (adopting the\nInternational Ethics Standards for Sustainability Assurance) as the\nethical standard for all practitioners.<\/p>\n
Tarkosunaryo explained that the three standards regulate different\nbut complementary aspects. First, the ethical standard regulates the\nethical requirements that practitioners must fulfil in carrying out\nengagements, including the requirement for practitioners to be\nindependent of the entity being examined.<\/p>\n
Second, the quality management standard regulates the components that\nmust be fulfilled by the firm where practitioners work, to ensure that\nevery engagement is carried out to the highest quality. Third, the\nassurance standard regulates the provisions for carrying out the\nengagement itself.<\/p>\n
\u201cThe three are designed to operate as a single unit: practitioners\nwho are independent and behave ethically, working under an adequate\nquality management system, and following clear engagement provisions, as\nthe combination needed to effectively reduce the risk of greenwashing,\u201d\nsaid Tarkosunaryo.<\/p>\n
He said that the three standards, namely SAKb 5000, SMM 1 and SMM 2,\nand the Ethical Standard for Sustainability Assurance, will soon be\navailable as ready-to-use standard infrastructure. However, the\navailability of standards alone is not sufficient to guarantee\nconsistent quality of sustainability assurance.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/iapi-proposes-single-standard-as-reference-for-sustainability-assurance-here-are-the-objectives-1787741608", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }