New ESG Intelligence Report Shines a Spotlight on Indonesia’s Long-Term Opportunities Amid 2022 G20 Presidency (Oxford Business and PwC Indonesia Group team up for latest report )

Jakarta, 16 December 2021 - A new environmental, social and governance (ESG) intelligence report, produced by Oxford Business Group (OBG) and PwC Indonesia, evaluates the opportunities presented by Indonesia’s ESG-related progress for the national economy, local organisations and incoming investors alike. 

The ESG Intelligence report provides in-depth analysis of Indonesia’s priorities for long-term growth, examining their alignment with the UN’s Sustainable Development Goals (SDGs) and outlining inherent challenges and opportunities, in an easy-to-navigate and accessible format with the support of key data and infographics. 

Indonesia’s ESG commitment is clear from its 2022 G20 Presidency focus on sustainability and environmental leadership, with topics set to include digitalisation and sustainable finance. COP26 in November this year, meanwhile, solidified climate sustainability as an urgent concern for the coming decade. 

The report explores the role that new digital tools are expected to play in widening access to health care, financial services and education. The publication also highlights the need for good governance to mitigate cybersecurity threats and instill trust in service users. On a business level, the publication outlines the role of corporate ESG strategy in long-term value creation, and evaluates the incumbent challenges in ESG reporting and benchmarking.

Key topics include OJK (financial services authority) regulations, Indonesia’s confirmed Carbon Tax under the Harmonised Tax Law (HPP) and potential impact of the EU’s Carbon Border Adjustment Mechanism; the planned new capital in East Kalimantan, which could offer a global blueprint in smart city development; and palm oil sustainability progress and challenges. 

Speaking ahead of the launch, Eddy Rintis, Territory Senior Partner, PwC Indonesia, noted that "we have noticed in the last year a significant increase in requests from clients who want to know how to incorporate ESG into their core business strategy”. “This is a response to increasing pressure from investors and customers, as well as regulators and other stakeholders.  I hope this report will give readers some insight into what ESG can mean for their business,” he added.

The report includes interviews with a number of experts from PwC Indonesia, with topics including Indonesia’s carbon tax scheme, evolving attitudes towards ESG in the domestic market and the role of trust in the ESG ecosystem. Among these, Julian Smith, PwC Indonesia’s ESG and Net Zero Leader, evaluates related opportunities and challenges for Indonesian organisations. 

“It is important to remember that ESG offers opportunities as well as threats,” Smith said. “Changes in consumer preferences present the most salient opportunity for value creation. As the price of carbon continues to increase, Indonesia’s businesses have the opportunity to generate a new revenue stream from carbon credits.”

Jade Currie, OBG’s Regional Editor for Asia, said that Indonesia’s targets showed both a commitment to ESG principles and underscore potential long-term value creation for all stakeholders.

“There will inevitably be challenges along the way,” she said. “However, with the recent COP26 conference highlighting the urgency for global climate action and the country’s renewed commitment to these goals, Indonesia’s 2022 G20 Presidency is an opportunity to ensure that sustainability and environmental leadership remain at the top of the global agenda while the country continues to move forwards with domestic ESG-related objectives.”

This ESG intelligence report forms part of a series of tailored studies that the global research and advisory company is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Growth and Recovery Outlook articles and interviews.