POJK Sustainability Reporting

What is POJK?

POJK is a regulation or peraturan issued by Indonesia’s Financial Services Authority, or Otoritas Jasa Keuangan (OJK) that governs the financial sector. The overall POJK framework covers several areas, including the digital service of POJK, or the POJK No. 21 of 2023, that regulates how banks deliver and manage digital financial services. In the sustainability context, the relevant regulation is POJK No. 51/POJK.03/2017, which sets the framework for sustainable finance and introduces mandatory sustainability reporting for organisations.

POJK 51 links Indonesia’s environmental and social commitments with its financial oversight by incorporating ESG considerations into governance, risk management, and disclosure across financial institutions and companies.

What is POJK sustainability reporting?

Under POJK Regulation No. 51/POJK.03/2017, organisations are obliged to prepare and submit a POJK sustainability report. This report discloses how an organisation applies sustainable financial principles to its business activities, governance, and risk management. POJK 51 follows an “inside-out” approach, focusing on how business activities affect society and the environment.

A sustainability report provision of POJK 51 may be published as a standalone report or included in the organisation’s annual report of POJK, along with its financial reporting. It expands reporting beyond financial results to include economic, social, and environmental performance.

Why is POJK important for sustainability reporting?

POJK has built a consistent framework for sustainable finance in Indonesia. It increases transparency and accountability by requiring organisations to disclose how their activities affect society and the environment.

Through the POJK sustainable finance, sustainability is integrated into lending, investment, governance, and risk management . This supports regulatory compliance while addressing longer-term exposure to environmental and social risks.

Is POJK mandatory?

POJK, specifically, the No. 51/POJK.03/2017 is mandatory, requiring the POJK 51 sustainability reporting for organisations within scope. The regulation was introduced with phased implementation based on institution or company type and asset size, with full coverage largely to be completed by 2025.

What happens if companies do not comply with POJK?

Organisations that fail to comply may receive sanctions from OJK. These may typically be in the form of written warnings or formal reprimands, with supervisory follow-up depending on the nature and duration of non-compliance.

Who needs to comply with POJK 51?

POJK 51 applies to these different entities.

Type	Definition
Financial Services Institutions	Banks and non-bank financial institutions regulated by OJK, such as insurers, finance companies, securities firms, and pension funds
Issuers	Parties conducting public offerings, including small or medium asset issuers
Public Companies	Non-issuer public companies that meet the definition of a public company

Requirements may vary depending on institution type, size, and risk profile, so entities with smaller asset thresholds and other factors are subject to a different reporting depth. IPOJK 51 was issued in 2017 and implemented in phases between 2019 and 2025. Larger banks and major financial institutions were required to comply first, followed by smaller institutions, issuers, and pension funds.

What are the key requirements of POJK sustainability reporting?

POJK is setting up the expectations for how sustainability is governed, managed, and reported, especially within the financial sector of Indonesia. The POJK sustainability report covers these areas:

Sustainability governance and policies: Board and management oversight, accountability, and internal structures
ESG risk management: Identification and management of environmental and social risks
Sustainability strategy and implementation: Sustainable Finance Action Plan (RAKB), including targets and progress
Disclosure of ESG information: Economic, social, environmental, and governance performance
Annual sustainability report submission: Reports must be submitted to OJK and published publicly. It may also be integrated into the broader annual report of POJK, as permitted.

How does POJK relate to other ESG frameworks?

POJK 51 is a national regulation that is also designed to align with global ESG standards. OJK recommends the use of global frameworks, such as the Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD) recommendations, and the ISSB standards, including IFRS S1 and IFRS S2.

Indonesia is also preparing to adopt ISSB-based standards, which introduce an “outside-in” perspective, from its original “inside-out” approach. This means POJK will also require disclosures on how sustainability risks affect financial performance and business strategy. These are expected to take effect in 2027, allowing also possible early adoption.

How Presgo Supports POJK Sustainability Reporting

Presgo is an AI-native ESG reporting software that helps organisations meet POJK 51 sustainability reporting requirements and go beyond compliance. Its ESG tools and technology turn regulatory obligations into a clear, audit-ready reporting workflow. This ESG software brings together data, governance information, and reports in an organised system that follows POJK 51 and the new ISSB standards.

Presgo’s configurable solutions for POJK 51 reporting include:

Data Hub to manage ESG data, define reporting boundaries, and maintain validation checks and audit trails
Materiality Assessment to identify and prioritise ESG and climate topics on outside-in and inside-out approaches
Supplier ESG to strengthen supply chain disclosures and support Scope 3 data collection
Carbon Calculator to track and report Scope 1, 2, and 3 greenhouse gas emissions
Goals and Performance to monitor ESG KPIs, targets, and year-on-year progress
Disclosure Hub to structure POJK-aligned narratives with consistent, decision-useful disclosures
Report Builder to bring data and disclosures together into a publish-ready Sustainability Report

Presgo helps meet POJK 51 compliance by linking disclosures back to controlled data, clear ownership, and audit trails. These allow your organisation to report with confidence and continuously advance sustainability practices.