EVALUATION OF THE IMPLEMENTATION OF OJK CIRCULAR LETTER NUMBER 16 OF 2021

Abstract

This research aims to evaluate the implementation of the Circular Letter issued by the Financial Services Authority (SE OJK) number 16 of 2021 concerning the form and content of Sustainability Reports. The existence of SE OJK number 16 of 2021 confirms the obligation for issuers and public companies to prepare financial reports. SE OJK number 16 of 2021 shows support for the Sustainable Development Goals. This research is quantitative descriptive in nature. Using data from listed issuers and public companies as of 31 December 2021, of 728 companies, 483 were identified as having prepared a Sustainability Report. This research found that in 2021 there was an increase in the number of companies compiling Sustainability Reports compared to the previous year by 154.2 percent. Apart from that, it was also found that there is a tendency for companies that prepare Sustainability Reports in 2021 to prefer to prepare Sustainability Reports that combine with the Annual Report. This research found that 85.7 percent of sample companies had disclosed sustainability strategies. However, only 51.1 percent of companies have a vision, mission and sustainability values. As many as 75.2 percent of companies disclosed energy consumption, while less than 50 percent disclosed the emissions produced by the company.