The UN Global Compact Network Indonesia (IGCN) presented key findings from an ongoing report conducted in collaboration with Indonesia Stock Exchange (IDX), Sustainalytics, and BCG during the Responsible Business Forum, 5th December 2024. This report assesses the progress of Indonesian companies in advancing SDG 16 (Peace, Justice, and Strong Institutions) within the context of ESG risk reporting. The study builds upon IGCN’s flagship program: SDG 16 Business Framework, which ran in 2022 and 2023 in collaboration with GRI, the Ministry of National Development, and IDX.


A key highlight of the study was the analysis of IDX80 companies, leveraging Sustainalytics’ ESG Risk Ratings to assess their governance performance. The findings revealed notable sectoral variations, with industries such as energy and basic materials naturally facing higher ESG risks. However, standout companies within these sectors demonstrated strong governance practices, proving that effective risk management can set industry leaders apart. Further analysis compared IGCN members to non-members, revealing that companies engaged with IGCN showed stronger ESG risk management scores. This reinforces the value of sustainability-focused initiatives in improving corporate governance. Moreover, companies that actively participated in IGCN’s SDG 16 program exhibited measurably better performance on key governance indicators, emphasizing the impact of structured engagement in ESG efforts.

This study marks a significant milestone in measuring and advancing governance practices in Indonesia’s corporate sector. As IGCN continues its efforts, fostering collaboration and knowledge-sharing will be essential in driving transformational governance beyond compliance.