ESG Advisory Services in Indonesia

ESG advisory covers three connected work streams: environmental compliance (AMDAL/UKL-UPL permitting, PROPER readiness, carbon footprint measurement), social and governance frameworks (materiality assessments, stakeholder engagement, KPI design), and formal sustainability disclosure (GRI-aligned reporting, POJK No. 51/POJK.03/2017 compliance). Companies typically need support because these requirements sit across different ministries and regulators, not one single agency. InCorp Indonesia’s ESG advisory team coordinates all three so nothing falls through the gaps.

It depends on your sector and structure. POJK No. 51/POJK.03/2017 requires sustainability reporting from financial services institutions, publicly listed companies, and other issuers regulated by OJK (Indonesia’s Financial Services Authority). Companies outside that scope may still face ESG disclosure requirements indirectly — through lender covenants, supply chain audits from multinational buyers, or green financing applications. A quick compliance check with InCorp Indonesia can confirm exactly where your company stands.

TKBI (Taksonomi untuk Keuangan Berkelanjutan Indonesia) is OJK’s sustainable finance taxonomy that classifies economic activities as “Green,” “Transition,” or “Does Not Meet Classification.” OJK issued TKBI version 3 at the Annual Financial Services Industry Meeting on 5 February 2026, marking the completion of classification standards for all NDC-related sectors, with a further update published on 31 March 2026. TKBI directly affects companies seeking green financing, sustainability-linked loans, or financing from banks that must now assess borrowers against it. If you’re applying for financing or working with financial institutions in Indonesia, this taxonomy will likely come up — InCorp Indonesia can help you assess your classification exposure.

TKBI version 3 followed the issuance of TKBI version 2 in February 2025 and the ASEAN Taxonomy for Sustainable Finance version 4 on 6 November 2025, and represents a more complete framework covering additional NDC-related sectors including manufacturing, waste management, and agriculture/forestry/fishing. Reporting to OJK still runs through the existing APOLO application, so the mechanics haven’t changed — but the classification criteria your activities are measured against have expanded significantly. Companies that assessed themselves under earlier versions should re-check their classification under version 3.

Non-compliance with POJK 51 reporting obligations can trigger regulatory sanctions from OJK, but the more immediate commercial risk is often exclusion from financing, tenders, or supply chains. Banks increasingly screen borrowers against TKBI classifications before approving loans, and multinational buyers routinely require ESG documentation (EcoVadis, GRESB, DJSI ratings) before onboarding suppliers. Waiting until a lender or buyer asks the question is the most common — and most costly — mistake companies make. Talk to InCorp Indonesia before that deadline arrives, not after.

Yes. InCorp Indonesia supports companies preparing for third-party ESG ratings, including data collection, gap analysis against rating criteria, and documentation review before submission. A strong rating increasingly functions as a prerequisite for multinational supply chain contracts and green financing eligibility, not just a reputational badge. If you’re targeting a specific rating deadline, InCorp can map out the preparation timeline with you.

Your KBLI classification and OSS/NIB licensing directly determine which ESG and environmental obligations apply to your business — for example, whether you need an AMDAL, UKL-UPL, or B3 waste permit. Many companies discover license-to-disclosure gaps only when a bank or auditor flags them. InCorp Indonesia performs license gap analysis against disclosure requirements as part of ESG onboarding, so licensing and ESG compliance are aligned from the start rather than reconciled after the fact.

The underlying regulations (POJK 51, AMDAL/UKL-UPL, TKBI) apply regardless of ownership structure, but PT PMAs often face additional scrutiny from foreign parent companies, international lenders, and supply chain partners applying stricter home-country ESG standards on top of Indonesian requirements. InCorp Indonesia works with PT PMAs to reconcile local regulatory compliance with parent-company or investor ESG expectations in one integrated framework.

Timelines depend on scope: a materiality assessment and ESG governance framework can typically be scoped within a few weeks, while full GRI-aligned sustainability reporting or TKBI classification across multiple business lines takes longer, particularly for first-time reporters. InCorp Indonesia scopes each engagement individually after an initial consultation, since the real driver of timeline is usually how much baseline data (emissions, supply chain, HR policies) your company already has documented.

The first step is a consultation where InCorp’s ESG advisors review your current compliance position — licensing, existing reports, financing plans — and identify the gaps that matter most for your sector. From there, InCorp scopes a tailored plan across strategy, reporting, or regulatory licensing alignment. Talk to our experts to schedule that first consultation.