Case Study: Building an ESG Strategy for Indonesia’s Railway Sector

In Indonesia, the railway sector, a highly regulated industry, is uniquely positioned to contribute to national sustainability goals. Public infrastructure affects millions of people, so the industry needs to be more open about its actions. There is a growing demand for safety, environmental care, and good social practices. 

A leading railway transportation and infrastructure company worked with InCorp Indonesia to assess its readiness for environmental, social, and governance (ESG) practices. Together, they created a clear ESG strategy for Indonesia. 

This strategy includes a roadmap, specific initiatives, and measurable key performance indicators (KPIs) to inspire confidence in the company’s long-term sustainability journey.  

The Need for a Structured ESG Strategy 

Before the engagement, the company had already taken steps to comply with existing regulations. These efforts ensured baseline compliance, but they did not yet form a cohesive ESG strategy that reflected international best practices or global railway benchmarks. 

Several challenges quickly became apparent: 

• No unified ESG strategy beyond local compliance  
• Need to align with global railway ESG benchmarks and government sustainability objectives  
• High urgency driven by public accountability and stakeholder expectations 

With sustainability taking center stage, the company urgently needed a transparent, cohesive ESG approach. This was not just to meet regulatory requirements, but also to satisfy the expectations of investors, the public, and other stakeholders.

Our ESG Strategy Approach 

To address these challenges, InCorp Indonesia provided end-to-end ESG advisory services to build a strong, practical strategic foundation. The focus was not on theory, but on developing an ESG strategy that could be realistically implemented within the operational realities of Indonesia’s railway sector. 

The scope of work included: 

• ESG Gap Analysis 
• Materiality Assessment 
• ESG Strategy Development 
• ESG Roadmap Planning for 2025–2027 

To execute this, we benchmarked the client’s current practices against local and global railway ESG standards. We created a clear ESG organizational structure. This includes a Sustainability Committee, ESG Ambassadors, and ESG Champions. These roles ensure accountability and encourage cooperation between departments.  

This process led to the development of 23 ESG initiatives across the Environmental, Social, and Governance pillars, all aligned with the United Nations Sustainable Development Goals (SDGs), reinforcing a shared commitment to global sustainability. 

Translating ESG Strategy into Action 

With the ESG strategy defined, the focus shifted from alignment to execution. The priority was ensuring that sustainability commitments translated into actions that could be implemented, monitored, and refined over time—without disrupting core railway operations. 

How the ESG strategy was put into action: 

• Structured into 23 initiatives across Environmental, Social, and Governance pillars, aligned with the UN Sustainable Development Goals (SDGs) 
• Each initiative is assigned clear ownership and supported by measurable ESG KPIs 
• Governance embedded into existing operational and decision-making structures 

To maintain momentum and accountability, execution was guided by a 3-year ESG roadmap (2025–2027), broken into quarterly milestones. This phased approach allowed the company to prioritize initiatives, manage organizational change, and demonstrate measurable progress to regulators, investors, and other stakeholders. 

Measurable Results and Strategic Impact 

The ESG advisory engagement delivered tangible and actionable results that strengthened the company’s sustainability positioning: 

• A comprehensive ESG roadmap with clearly defined quarterly milestones from 2025 to 2027 
• Measurable ESG key performance indicators (KPIs) to monitor progress and performance 
• Improved readiness and positioning for Green Bond and sustainability-linked financing opportunities 
• Stronger stakeholder engagement supported by a clear long-term sustainability direction 

By implementing a structured ESG strategy, the company moved beyond compliance toward a proactive sustainability approach, empowering it to respond more effectively to future regulatory developments and investor expectations. 

Why ESG Strategy Matters in Indonesia 

For companies operating in critical public-facing industries, a strong ESG strategy is no longer optional. In Indonesia’s railway sector, ESG plays a central role in building long-term value and public trust. 

A well-defined ESG strategy helps organizations achieve: 

• Greater trust among customers, investors, regulators, and the public 
• Increased resilience against environmental, operational, and reputational risks 
• Competitive advantage through access to sustainability-linked financing and innovation 
• Stronger alignment with global ESG expectations and Indonesia’s national sustainability goals 

As regulatory frameworks and stakeholder observation continue to evolve, companies that invest early in a robust ESG strategy are better positioned to adapt and remain competitive.

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Conclusion 

Are you ready to elevate your company’s ESG framework? Partner with InCorp Indonesia (an Ascentium Company) to develop a powerful ESG strategy that goes beyond compliance and delivers measurable impact. 

Together, we can help your organization build a credible ESG strategy that supports long-term sustainability, strengthens stakeholder confidence, and enhances competitiveness on the global stage.

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