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Jurnal Teknika dan Informatika Abnus Publisher

Analysis of Environmental, Social, and Governance Disclosure Quality in Indonesian Manufacturing Companies

2025-05-21
Published
1-19
Pages
OPEN
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FN
Fitra Nur
Accounting Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar
WR
Wa Ode Rayyani
Accounting Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar
Abstract

Purpose: This study aims to analyze the quality of Environmental, Social, and Governance (ESG) disclosures among manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2021–2025 using the Global Reporting Initiative (GRI) Standards 2021 and the Indonesian Financial Services Authority (OJK) framework.

Research Methodology: A descriptive quantitative approach was employed through content analysis of sustainability and annual reports. Purposive sampling selected 85 manufacturing companies, resulting in 425 firm-year observations. ESG disclosure quality was measured using a GRI-based disclosure index, while panel data regression examined the effects of firm size, profitability, institutional ownership, leverage, and regulatory pressure.

Results: The findings indicate that ESG disclosure quality improved consistently between 2021 and 2025, with the average ESG disclosure index increasing from 35.00 to 47.28. Governance achieved the highest disclosure level, followed by social and environmental dimensions. Firm size, profitability, institutional ownership, and regulatory pressure positively and significantly influenced ESG disclosure quality, whereas leverage had a significant negative effect. 

Conclusions: ESG disclosure quality among Indonesian manufacturing companies has improved over time, although considerable disparities remain across firms. Corporate characteristics and regulatory pressure are important determinants of disclosure quality.

Limitations: This study focuses only on manufacturing companies listed on the IDX and evaluates disclosures based on publicly available reports.

Contributions: The findings enrich the literature on ESG disclosure quality in emerging markets and provide practical implications for regulators, investors, and corporate managers seeking to strengthen sustainability reporting practices in Indonesia.

Environmental, Social, and Governance (ESG) Indonesia Stock Exchange Manufacturing Companies Sustainability Report Disclosure Quality
How to Cite
Nur, F., & Rayyani, W. O. . (2025). Analysis of Environmental, Social, and Governance Disclosure Quality in Indonesian Manufacturing Companies. Jurnal Teknika Dan Informatika, 5(1), 1-19. https://doi.org/10.52909/jti.v5i1.362
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How to Cite

Nur, F., & Rayyani, W. O. . (2025). Analysis of Environmental, Social, and Governance Disclosure Quality in Indonesian Manufacturing Companies. Jurnal Teknika Dan Informatika, 5(1), 1-19. https://doi.org/10.52909/jti.v5i1.362
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