Navigating the Revisions of POJK 51/2017: Indonesia’s Shift Toward Global Sustainability Standards

For nearly a decade, Regulation No. 51/POJK.03/2017 (POJK 51/2017) issued by Indonesia’s Financial Service Authority (Otoritas Jasa Keuangan/OJK) served as the regulatory foundation for sustainable finance. It mandated that financial institutions, public issuers, and listed companies implement sustainable finance principles, submit a Sustainable Action Plan (RAKB), and publish an annual Sustainability Report (SR).

However, as capital markets demand high-integrity, decision-useful ESG and climate data, the original framework has shown structural limitations. Following mandates under the Financial Sector Omnibus Law (UU P2SK) and global harmonization, OJK is actively revising POJK 51/2017. A central driver of this revision is Indonesia’s formal adoption of the Pernyataan Standar Pengungkapan Keberlanjutan (PSPK) issued by the Indonesian Institute of Accountants (Ikatan Akuntan Indonesia / IAI):

• PSPK 1 (Persyaratan Umum Pengungkapan Informasi Keuangan Terkait Keberlanjutan): Directly adopted from IFRS S1, establishing general requirements for disclosing sustainability-related financial risks and opportunities that impact enterprise value.

• PSPK 2 (Pengungkapan Terkait Iklim): Directly adopted from IFRS S2, mandating granular disclosures on climate physical/transition risks, climate scenario analysis, resilience strategies, and GHG accounting across all scopes.

Together with the revised POJK framework, these standards shift Indonesian reporting from narrative CSR disclosures to investor-grade, financially material disclosures.

The Evolution: Comparing the Old Framework with the Revised Regulation

The original POJK 51/2017 introduced sustainability to Indonesian boardrooms, but its flexible structure created discrepancies in depth and comparability across corporate disclosures. The revised regulation fundamentally updates this paradigm across four core pillars.

Dimension	Original POJK 51/2017	Revised POJK Framework
Guiding Standard	Broad CSR & sustainability reporting; optional GRI/SASB reference	Aligned with ISSB (IFRS S1/S2 / PSPK 1/2) and TKBI (Taksonomi Keuangan Berkelanjutan Indonesia)
Emissions Accounting	Basic operational energy and high-level Scope 1 & 2 figures	Comprehensive Scope 1 & 2; phased integration of Scope 3 (including Financed Emissions / PCAF)
Taxonomy Alignment	Generic sustainable business activity categories (11 focus sectors)	Technical Screening Criteria under TKBI (Green, Transition, Non-aligned)
Climate Strategy	Descriptive CSR initiatives and broad environmental activities	Quantitative climate scenario analysis, resilience testing, and formal Transition Plans
Assurance & Verification	Self-declared; third-party verification strictly voluntary	Phased roadmap toward mandatory independent third-party assurance

Corporate Impact: What it Means for Indonesian Businesses

The revision will directly reshape corporate compliance, governance, and capital allocation across both the real and financial sectors.

Public companies and Issuers (Emiten):

1. Climate transition planning: Issuers can no longer treat sustainability reports as marketing collaterals. They must present science-based decarbonization targets, scenario analyses, and documented capital allocation strategies.

2. Supply Chain Transparency: Large public corporation will need primary emissions and ESG data from Tier-1 and Tier-2 suppliers to fulfill borader Scope 3 reporting expectations.

3. Cost of Capital Sesitivity: Institutional investors and lenders will benchmark disclosures againsts ISSB standards; companies with substandard data will face higher financing costs and restricted access to global sustainability-linked capital.

Banks and Financial Institutions:

1. Financed Emissions Tracking (Scope 3 Category 15): Financial institutions must systematically account for the carbon intensity of their lending, debt underwritting, and investment portfolios using frameworks like PCAF (Partnersip for Cabron Accounting Financials).

2. Underwriting and Credit Risk Integration: ESG risk scoring and TKBI compliance will transition from separate compliance checks into core credit underwritting criteria.

3. Green Portfolio Targets: Banks will face clearer regulatory benchmarking regarding the proportion of their balance sheet allocated to TKBI-aligned green projects versis high-emission transition assets.

Conclusion

The revision of POJK 51/2017 brings Indonesia’s regulatory ecosystem into direct alignment with global financial standards. For corporations and financial institutions alike, sustainability is firmly transitioning from an ancillary CSR duty into a core fiduciary and operational imperative. Organizations that invest early in robust GHG accounting, auditable data management, and board-level climate governance will gain a distinct competitive edge in the evolving green economy. Navigating this shifting regulatory landscape requires both international rigor and deep local insight.

As a dedicated corporate decarbonization and sustainability partner across APAC, Mt. Stonegate bridges this gap. From end-to-end Scope 1–3 emissions accounting and assurance-ready data systems to TKBI alignment and transition planning, Mt. Stonegate equips your organization with the technical expertise and market intelligence needed to turn POJK 51/2017 compliance into long-term strategic value.

References:

1. POJK No. 51/POJK.03/2017: Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik (Otoritas Jasa Keuangan / OJK).

2. Rancangan Peraturan OJK (RPOJK) & RPADK on Sustainable Finance (Revision of POJK 51/2017): Public consultation and draft regulations issued by OJK aligning reporting requirements with global standards and national climate targets.

3. Undang-Undang Nomor 4 Tahun 2023 (UU P2SK): Pengembangan dan Penguatan Sektor Keuangan (Financial Sector Omnibus Law mandate).

4. PSPK 1 & PSPK 2 (Pernyataan Standar Pengungkapan Keberlanjutan): Issued by the Sustainability Standards Board of the Indonesian Institute of Accountants (Dewan Standar Keberlanjutan Ikatan Akuntan Indonesia / DSK IAI)

5. Taksonomi Keuangan Berkelanjutan Indonesia (TKBI): OJK’s updated Sustainable Finance Taxonomy replacing the earlier Taksonomi Hijau Indonesia 1.0.

6. IFRS S1 & IFRS S2: Published by the International Sustainability Standards Board (ISSB).

7. Task Force on Climate-related Financial Disclosures (TCFD): Core 4-pillar disclosure architecture (Governance, Strategy, Risk Management, Metrics & Targets).

8. PCAF (Partnership for Carbon Accounting Financials): Global GHG accounting standard for Financed Emissions (Scope 3 Category 15).

9. GHG Protocol: Corporate Standard and Scope 3 Value Chain Standard.