As global attention toward environmental, social, and governance (ESG) issues continues to grow, companies in Indonesia are navigating two sustainability reporting frameworks that come from very different origins: the Global Reporting Initiative (GRI) Standards from the international arena, and the Financial Services Authority (OJK) regulations, specifically POJK Number 51/POJK.03/2017 and SEOJK Number 16/SEOJK.04/2021. The question many practitioners and business actors are asking is whether these two frameworks can be brought together into a single sustainability report.
Table of Content:
- Understanding GRI: An International Reporting Framework
- POJK 51 and SEOJK 16: Indonesia’s Regulatory Requirements
- Integrating Both Frameworks in One Report
Understanding GRI: An International Reporting Framework
The GRI Standards are a sustainability reporting system built for organisations of all sizes, sectors, and geographic locations. The system is structured around three interconnected series: the Universal Standards (GRI 1, 2, and 3), Sector Standards, and Topic Standards.
The Universal Standards provide the foundation for sustainability reporting. GRI 1 outlines the purpose and core principles, while GRI 2 focuses on general disclosures related to an organisation’s profile, governance, strategy, and stakeholder engagement. GRI 3 provides guidance for identifying material topics that reflect the organisation’s most significant impacts on the economy, environment, and people.
The overarching aim of the Standards is to promote transparency about how organisations contribute to sustainable development. By providing a consistent and credible approach to reporting impacts, they help information users—from investors to civil society—make more informed assessments and decisions.
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Sustainability Report Based on POJK 51 and SEOJK 16
POJK 51 and SEOJK 16: Indonesia’s Regulatory Requirements
POJK 51/POJK.03/2017 on Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies mandates that certain entities in the financial services sector prepare a Sustainability Report. This regulation encompasses environmental, social, and governance dimensions as part of a long-term business strategy.
SEOJK 16/SEOJK.04/2021 then refines and updates the technical requirements for preparing such reports. It outlines the scope of disclosures that must be met, ranging from company profiles and economic performance to environmental management, social aspects, and corporate governance. This circular applies specifically to issuers and public companies listed on the Indonesia Stock Exchange.
Integrating Both Frameworks in One Report
Despite their different origins, one from an international standard-setting body, the other from a national regulator, GRI and the OJK regulations share a remarkably similar conceptual foundation.
Both centre on impact. GRI defines impact as the effect an organisation has (or may have) on the economy, environment, and society, whether actual or potential, positive or negative. This scope maps closely onto the disclosure areas required by POJK 51 and SEOJK 16, which cover the environmental, social, and governance dimensions.
Both require meaningful stakeholder engagement. Under GRI, identifying and involving stakeholders is a core part of determining material topics. A similar logic underpins POJK 51, where the interests of various parties form the basis of sustainable finance planning.
Both emphasise governance transparency. GRI 2 includes detailed disclosures on governance structures, the role of the highest governance body in overseeing sustainability impacts, and remuneration policies. SEOJK 16 similarly requires corporate governance disclosures as one of the pillars of a sustainability report.
Last but not least, both support verified reporting. GRI encourages the use of external assurance to strengthen the credibility of reported information, while Indonesia’s local regulations also create space for independent parties to validate sustainability reports.
Develop a Sustainability Report Aligned with Standards and Regulations
Looking to prepare a sustainability report that aligns with GRI while meeting the requirements of POJK 51 and SEOJK 16? Validerra can support your company in integrating these standards and regulations into a structured, relevant, and effective reporting framework. Consult your sustainability reporting needs with Validerra.
Author: Ainur
Editor: Lina
Referensi
Global Reporting Initiative. (2021). GRI 1: Landasan 2021. Global Sustainability Standards Board.
Global Reporting Initiative. (2021). GRI 2: Pengungkapan Umum 2021. Global Sustainability Standards Board.
Global Reporting Initiative. (2021). GRI 3: Topik Material 2021. Global Sustainability Standards Board.
Otoritas Jasa Keuangan. (2017). Peraturan OJK Nomor 51/POJK.03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik.
Otoritas Jasa Keuangan. (2021). Surat Edaran OJK Nomor 16/SEOJK.04/2021 tentang Bentuk dan Isi Laporan Tahunan Emiten atau Perusahaan Publik.