Under POJK 51, financial services institutions, issuers, and public companies must prepare sustainability reports to disclose how they manage and perform on economic, environmental, social, and governance matters.
POJK 51 reporting requires companies to collect, validate, and align ESG data across multiple functions, while ensuring disclosures are complete, consistent, and supported by internal records. This becomes more challenging as Indonesia moves toward stricter sustainability disclosure requirements starting in 2027.
Key Takeaways
- POJK 51 requires annual sustainability reporting for financial services institutions, issuers, and public companies within its scope.
- Reporting requires reliable ESG data, clear ownership, and supporting records for the information disclosed.
- SEOJK 16 provides more detailed reporting guidance for issuers and public companies, including sustainability-related disclosures in the Annual Report.
- Compliance with POJK 51 can support financing, risk management, and stakeholder confidence through clearer ESG information.
- Reporting requirements are evolving as Indonesia prepares for PSPK 1 and PSPK 2, which take effect from January 1, 2027.
POJK 51 compliance at a glance
| Requirement | What Companies Should Know |
| Main Regulation | POJK No. 51/POJK.03/2017 |
| Who Is Directly Covered? | LJK, issuers, and public companies subject to the regulation |
| Sustainability Report | Must be prepared annually by covered LJK, issuers, and public companies |
| RAKB | Required for LJK subject to POJK No. 51/POJK.03/2017 |
| Main Disclosure Areas | Economic, financial, environmental, social, sustainability governance, and other information required under the applicable reporting format |
| Report Submitted with Annual Report | Follows the annual-report submission deadline applicable to the entity |
| Report Submitted Separately | Must be submitted to OJK no later than 30 April of the following year |
| Publication | Sustainability Reports must generally be published on the entity’s website no later than 30 April of the following year |
| Non-Compliance | Specified violations may result in an administrative sanction, such as a reprimand or written warning |
| 2026 Development | OJK published a proposed revision of POJK 51 for public consultation in February 2026 |
| Related Reporting Development | PSPK 1 and PSPK 2 become effective on 1 January 2027; OJK’s proposed revision is intended to align sustainability disclosure requirements with these standards |
POJK 51 requires LJK, issuers, and public companies to prepare an annual Sustainability Report. The report may be included in the Annual Report or submitted separately. If submitted separately, it must be filed with OJK no later than April 30 of the following year and, in general, published on the company’s website by the same date.
What is POJK 51?
POJK 51 refers to OJK Regulation No. 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies.
The regulation establishes Indonesia’s primary framework for integrating economic, social, environmental, and governance considerations into financial-sector and capital-market activities.
Among its core requirements, the regulation requires covered entities to:
- Apply sustainable finance principles in their business activities
- Prepare and publish annual sustainability reports
- Carry out relevant environmental and social responsibility activities
- For financial services institutions, prepare and implement an annual (RAKB — Rencana Aksi Keuangan Berkelanjutan)
POJK 51 is complemented by SEOJK 16/SEOJK.04/2021, which provides more detailed sustainability disclosure requirements for issuers and public companies. Together, they form a key part of Indonesia’s ESG reporting framework for these entities.
Who is subject to POJK 51?
POJK 51 directly applies to entities regulated under Indonesia’s sustainable finance framework, including:
- Financial Services Institutions (LJK), including banks, capital market institutions, insurers, pension funds, financing institutions, and other financial services institutions.
- Issuers, meaning parties that conduct public offerings.
- Public companies subject to OJK capital market requirements.
These entities are required to prepare an annual Sustainability Report in accordance with the regulation.
Private companies outside these categories are still relevant, as they may be expected to provide ESG information to investors, lenders, parent companies, or business partners.
How POJK 51 aligns with GRI, IFRS, and SASB
POJK 51 establishes Indonesia’s regulatory requirements for sustainability reporting, while global standards can provide additional structure for measuring and communicating ESG information.
| Framework | Primary Purpose | Relevance in Indonesia |
| POJK 51 | Indonesian sustainability reporting compliance | Mandatory for entities within its scope |
| GRI Standards | Reporting impacts on the economy, environment, and people | Voluntary and commonly used alongside POJK 51 |
| IFRS S1/S2 | Investor-focused sustainability and climate disclosures | Reflected in Indonesia through PSPK 1 and PSPK 2 |
| SASB Standards | Industry-specific sustainability risks and metrics | Can support industry-specific disclosures under IFRS Sustainability Standards |
These standards serve different purposes. POJK 51 sets the local reporting requirement, while GRI, IFRS S1/S2, and SASB provide additional frameworks for impact, investor, and industry-specific disclosures.
From January 1, 2027, Indonesia will also implement PSPK 1 and PSPK 2, aligned with IFRS S1 and IFRS S2.
Need support with POJK 51 reporting?
InCorp Indonesia (an Ascentium Company) can help assess reporting gaps, prepare disclosures, and align your Sustainability Report with applicable requirements. Talk to our team →
What does a POJK 51 sustainability report cover?
POJK 51 sets out the core sustainability reporting requirements, while SEOJK 16 provides more detailed guidance for issuers and public companies. Key disclosure areas include:
- Company profile
- Sustainability strategy and Board of Directors’ explanation
- Sustainability governance
- Economic performance
- Social performance, including employment, health and safety, and community impact
- Environmental performance, including energy, water, emissions, waste, and biodiversity where relevant
- Responsibility for sustainable products and services
- Independent verification, if available
- Feedback and responses to previous feedback, where applicable
Companies using the GRI Standards may also include a GRI Content Index to make disclosures easier for stakeholders to identify and compare.
Why POJK 51 reporting matters for companies
Beyond meeting regulatory requirements, structured POJK 51 reporting can support several areas of business performance:
- Access to financing by providing banks and financial institutions with clearer ESG information to evaluate sustainability risks and business resilience.
- Risk identification by helping companies surface environmental, social, labor, and supply chain issues before they become more significant.
- Investor and partner confidence by providing more credible information for due diligence and ESG assessment.
- Business continuity by linking sustainability performance with governance, risk management, and long-term business strategy.
How companies can prepare for POJK 51 compliance
POJK 51 reporting depends on having the right data, responsibilities, and governance in place before the report is drafted. Companies should focus on:
- Confirm applicable requirements: Identify the POJK 51 obligations relevant to the entity.
- Map required disclosures: Compare available information against POJK 51 and applicable OJK guidance.
- Assign ESG data owners: Define who is responsible for environmental, social, governance, and financial data.
- Validate reporting data: Make sure figures are consistent, traceable, and supported by internal records.
- Link ESG to governance and risk: Show how sustainability issues are managed within the company’s decision-making and risk processes.
- Prepare for upcoming changes: Assess readiness for PSPK 1 and PSPK 2 ahead of their 2027 effective dates.
Prepare your POJK 51 sustainability reporting with InCorp
POJK 51 compliance becomes difficult when reporting requirements, ESG data, and internal responsibilities are addressed only at year-end.
InCorp Indonesia (an Ascentium Company) can support companies in establishing a more structured sustainability reporting process, including:
- POJK 51 readiness and gap assessment to identify applicable requirements and missing disclosures
- Sustainability report preparation aligned with Indonesian regulatory requirements
- GRI Standards alignment for companies requiring internationally comparable reporting
- ESG data and reporting framework development to improve consistency across reporting periods
- Sustainability and climate disclosure readiness as Indonesia moves toward PSPK 1 and PSPK 2
Start with a POJK 51 reporting assessment to identify the disclosures, data, and governance arrangements your company needs before the next reporting cycle. Fill out the form below.
Frequently Asked Questions
What is POJK 51?
POJK 51 is OJK Regulation No. 51/POJK.03/2017 on sustainable finance. It sets sustainability-related requirements for financial services institutions, issuers, and public companies in Indonesia.
Who must comply with POJK 51?
POJK 51 directly applies to financial services institutions, issuers, and public companies within its regulatory scope.
Does POJK 51 require a Sustainability Report?
Yes. Covered entities must prepare a Sustainability Report annually, either as part of the Annual Report or as a separate report.
When is the POJK 51 Sustainability Report due?
If the Sustainability Report is submitted separately from the Annual Report, POJK 51 generally requires submission to OJK by April 30 of the following year.
What information must be included in a POJK 51 report?
Key areas include sustainability strategy, governance, economic performance, social performance, environmental performance, company profile, and other disclosures required under the applicable OJK reporting guidance.
Is GRI mandatory under POJK 51?
GRI Standards are not mandatory under POJK 51, but companies may use them alongside local requirements to provide more structured and internationally comparable sustainability disclosures.
Does POJK 51 apply to private companies?
Private companies outside the regulated categories are not automatically subject to POJK 51. However, they are still relevant to ESG reporting because investors, lenders, parent companies, or business partners may request sustainability information.
Why does POJK 51 compliance matter for business?
Strong sustainability reporting can support regulatory compliance, improve ESG data quality, strengthen risk identification, and provide clearer information for investors, lenders, and business partners.
What changes should companies prepare for in 2027?
Indonesia's PSPK 1 and PSPK 2 take effect on January 1, 2027, introducing sustainability-related financial and climate disclosure standards into Indonesia's reporting landscape. Companies should assess how prepared their current ESG data and reporting processes are for these developments.
How can InCorp Indonesia support POJK 51 compliance?
InCorp Indonesia (an Ascentium Company) can help companies assess reporting gaps, organize ESG data, structure Sustainability Reports, and align disclosures with applicable Indonesian requirements and relevant reporting standards.
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