Indonesian Political, Business & Finance News

ESG Performance of Indonesian Companies Improves, but Sectoral Gaps Persist

| | Source: REPUBLIKA Translated from Indonesian | Business
ESG Performance of Indonesian Companies Improves, but Sectoral Gaps Persist
Image: REPUBLIKA

The Environmental, Social, and Governance (ESG) performance of companies in Indonesia has shown an increase in recent years. However, this development is still accompanied by gaps in several material issues and differences in performance between various groups of companies.

These findings are reflected in the Katadata ESG Insight (KESGI) mapping, which this year covers approximately 400 companies using 100 indicators. Based on this mapping, Indonesia’s ESG score has increased from 28.3 to 42.4.

Co-Founder & CCO of Katadata, Heri Susanto, stated that the mapping and analysis of ESG performance are conducted through KESGI, which was developed as an instrument to process corporate data into insights and ESG performance benchmarks.

“From this dashboard, we transform data into insights. From these insights, we analyse, obtain benchmarks, and ultimately achieve credible recognition,” said Heri during the Katadata Sustainability Action for Future Economy (SAFE) 2026 event in Jakarta on Thursday (17/9).

According to Heri, the increase in scores does not yet fully represent the even distribution of ESG performance across all sectors. Katadata still finds gaps in material issues deemed important in several sectors, as well as growing disparities in ESG performance between different groups of companies.

“Katadata appreciates companies that demonstrate outstanding ESG performance in their respective sectors, based on data and empirical evidence,” he added.

ESG Performance in the Energy and Industrial Sectors

This development is also reflected in the performance of several companies within the KESGI mapping. The Barito Pacific Group, for instance, recorded achievements through two of its business entities, namely PT Chandra Asri Pacific Tbk and PT Barito Renewables Energy Tbk.

Chandra Asri Pacific received appreciation for its emission management initiatives in the chemicals and packaging sector. The company was also noted for its excellence in employee development and retention through enhanced training, career development, succession programmes, and talent mobility.

Meanwhile, Barito Renewables Energy received appreciation for its efficiency and energy management initiatives in the utilities and electricity sector. The assessment included the implementation of energy management systems, efficiency innovations, and the management of renewable energy generation based on geothermal and wind power.

The achievements of both companies are part of the KESGI Awards 2026, presented during the Katadata Sustainability Action for Future Economy (SAFE) 2026 series in Jakarta.

More broadly, the Barito Pacific Group continues to develop sustainability aspects in its business activities through investments in renewable energy, the application of clean technology, and increased energy efficiency.

The KESGI Awards are presented to companies based on the mapping and analysis of ESG performance through KESGI. Katadata has developed the KESGI dashboard over the past four years as an instrument to process corporate data, establish benchmarks, and monitor the progress of sustainability principle implementation.

KESGI was first established in 2022 as an instrument to measure the implementation of corporate sustainability principles.

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