Since the adoption of the Sustainable Development Goals (SDGs) by the United Nations in 2015, Indonesia has committed to achieving 17 sustainable development goals by 2030.
This commitment is not only the responsibility of the government but also of the business sector. Companies are required to demonstrate real contributions to achieving the SDGs, one of which is through sustainability reports.
Sustainability reports are no longer merely formal documents but strategic instruments that connect corporate performance with sustainable development targets. This article discusses how sustainability reports in Indonesia play a role in supporting the achievement of the SDGs, the challenges faced, and the strategic opportunities available.
- SDGs in Indonesia
- Sustainability Reports as SDG Reporting Tools
- Case Studies
- Challenges of Integration
- Strategic Opportunities
SDGs in Indonesia
Indonesia has prepared the Indonesian SDGs Roadmap and national indicators published by the Central Statistics Agency. The main focus includes poverty alleviation, clean energy, decent work, sustainable consumption and production, and climate action.
The United Nations in Indonesia reports that achieving the SDGs requires cross sector collaboration. The government cannot work alone; private companies and state owned enterprises play an important role in supporting national targets.
Sustainability Reports as SDG Reporting Tools
Sustainability reports are the primary means for companies to demonstrate their contributions to the SDGs. The most commonly used reporting standard in Indonesia is the Global Reporting Initiative (GRI), which provides guidelines for linking sustainability indicators to the SDGs.
Research shows that most Indonesian companies listed on the stock exchange have begun to link sustainability with the SDGs. A study by Gutiérrez Ponce & Wibowo (2023) found that companies disclosing their connection to the SDGs in sustainability are more valued by investors and stakeholders.
In addition to GRI, ISSB standards (IFRS S1 and S2) are also beginning to be adopted in Indonesia. Integrating ISSB with the SDGs will strengthen reporting consistency, ensuring sustainability reports not only meet global regulations but also support national development agendas.
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Integrating SDGs into sustainability reporting
Case Studies
Several major companies in Indonesia have integrated the SDGs into their sustainability reports:
- Energy companies report contributions to SDG 7 (Affordable and Clean Energy) through investments in renewable energy.
- Agribusiness sector links waste reduction and water efficiency programs to SDG 12 (Responsible Consumption and Production).
- Manufacturing companies report carbon emission reduction programs as part of SDG 13 (Climate Action).
Research by Riadi, Pulungan, & Windiarti (2025) shows that SDG disclosure in sustainability reports is positively related to firm value. Furthermore, the presence of a risk management committee strengthens this relationship, indicating that good governance supports report credibility.
Challenges of Integration
Although the trend of integrating SDGs into sustainability reports is growing stronger, several challenges remain in Indonesia:
- Limited data Many companies struggle to collect data aligned with SDG indicators, especially in the SME sector.
- Verification costs Assurance processes by third parties require high costs, making them unaffordable for some companies.
- Management awareness Some companies still view sustainability reports as administrative obligations rather than strategic tools.
- Standard harmonization Synchronization between global standards (GRI, ISSB) and national SDG indicators is needed to make reports more relevant.
Strategic Opportunities
Integrating sustainability reports with the SDGs opens significant opportunities for Indonesian companies:
- Attracting green investment: global investors increasingly demand reports linked to the SDGs.
- Strengthening export competitiveness: international markets, especially Europe, require ESG transparency and SDG contributions.
- Supporting national targets: integrated sustainability reports help the government monitor SDG achievement.
- Corporate reputation: companies actively reporting contributions to the SDGs are more valued by consumers and society.
Conclusion
The relationship between the SDGs and sustainability reports in Indonesia is becoming increasingly close. Sustainability reports are not just formal documents but strategic instruments to demonstrate corporate contributions to sustainable development.
Although challenges remain from limited data, costs, to management awareness the strategic opportunities are substantial. Companies that proactively integrate the SDGs into sustainability reports will be better prepared to meet global demands, attract green investment, and strengthen their reputation in international markets.
Ultimately, sustainability reports integrated with the SDGs are not just reporting tools but the foundation for business sustainability and national development.
The challenge often lies not in the intention to contribute to the SDGs, but in translating those contributions into reports that are clear, measurable, and easy for stakeholders to understand.
Many companies already have various initiatives in place, yet they are not well organized or directly linked to relevant SDG indicators. When structured properly, however, a sustainability report can become a powerful tool to demonstrate impact while strengthening business positioning.
Through Validerra’s Sustainability Report development services, your company can be supported in organizing and aligning its SDG contributions into a more structured, credible, and strategically valuable report one that resonates with investors and the broader market.
Author: Nadhif
Editor: Shoofi
References
Badan Pusat Statistik. (2024). Indonesian Sustainable Development Goals Indicators 2024. Jakarta: BPS.
Gutiérrez-Ponce, H., & Wibowo, S. A. (2023). Sustainability Reports and Disclosure of the Sustainable Development Goals (SDGs): Evidence from Indonesian Listed Companies. Sustainability, 15(24), 16919. https://doi.org/10.3390/su152416919
Riadi, D., Pulungan, A. H., & Windiarti, F. (2025). Sustainable Development Goals reporting and firm value in Indonesia: Moderating role of separate risk management committee. International Journal of Business Continuity and Risk Management, 15(1), 46–62. https://doi.org/10.1504/IJBCRM.2025.144944
PwC Indonesia. (2022). Trends and Directions of Sustainability Reports in Indonesia. Jakarta: PwC.
United Nations in Indonesia. (2024). Country Results Report 2024. Jakarta: UN Indonesia.