On Monday 17 April 2023, BPKP (Badan Pengawasan Keuangan Pembangunan) launched its ESG Assessment Guidelines for State-owned Enterprises (SOEs) to help them improve their sustainability reporting practices.

Developed with technical assistance from experts at Monash University and the Climateworks Centre, these guidelines will, for the first time, allow SOEs to demonstrate their contribution to Indonesia’s climate and development goals.

‘The guidelines will accelerate the development of decarbonisation pathways for Indonesia’s more than one thousand state-owned enterprises (SOEs),’ said Dr John Vong, System Lead for Sustainable Finance at the Climateworks Centre. ‘Given these account for approximately half of national emissions and span sectors as diverse as aviation, oil and gas and agriculture, their decarbonisation will be critical for Indonesia’s nationally determined contribution (NDC) to the Paris Agreement.’

Since 2022, BPKP has been collaborating with Australian experts at Monash University and Climateworks Centre on a supervisory framework that strengthens its ability to track progress on net zero emissions, among other environmental, social and governance (ESG) measures.

This has involved training and specialist technical advice to integrate these worlds-best-practice reporting frameworks into national auditing.

‘The launch of this framework is very significant,’ said Vice President of Engagement at Monash University Indonesia Grace Wangge. ‘BPKP has the reach and capability of enacting system-wide change and carries the weight of endorsement from Indonesia’s highest office.’

Customised for Indonesia, the framework is aligned with international best practice, such as the Global Reporting Initiative, International Sustainability Standards Board and Taskforce on Climate-related Financial Disclosures (TCFD).

It is expected to help Indonesia’s shift from coal to renewables under the US$20 billion Just Energy Transitions Partnership (JETP). The ESG Assessment Guidelines will be piloted throughout 2023 in trials with the largest state-owned enterprises.

Media enquiries contact:

Luke Brown
Head of Engagement and Partnerships, Climateworks Centre
+61 406 991 702  

BPKP Bahasa media release published Jakarta 17 April 2023 5:20PM