ESG Principles Driven as New Standard for Indonesian Business Competitiveness

Environmental, Social, and Governance (ESG) principles are increasingly vital for Indonesian businesses seeking to compete globally. No longer a mere add-on, ESG is now a key indicator for building competitiveness, managing risks, and attracting long-term investment. To foster this shift, the KEHATI Foundation is organizing its fourth ESG Award 2026 by KEHATI. This event honors companies, financial institutions, investors, and businesses demonstrating leadership in ESG implementation across Indonesia.

The award ceremony, scheduled for August 6, 2026, at Soehanna Hall, Energy Building in Jakarta, will convene regulators, capital market players, investors, associations, corporations, and other stakeholders. The ESG Award by KEHATI is part of a broader initiative to promote sustainable investment in Indonesia. Since launching the SRI-KEHATI index with the Indonesia Stock Exchange in 2009, KEHATI has actively developed an ESG-based investment ecosystem, including the ESG Sector Leaders IDX KEHATI and ESG Quality 45 IDX KEHATI indices in 2021.

However, the adoption of ESG investments in Indonesia still faces hurdles. The range of ESG investment products remains limited compared to conventional options, and both market players and the public require a stronger understanding of sustainable investing. The ESG Award aims to accelerate the emergence of more entities that integrate sustainability into their core business strategies. Over its three-year history, the award has recognized approximately 73 companies from various sectors for their ESG performance.

Ongki Kurniawan, a member of the ESG Award 2026 Jury, emphasized that future business success will hinge on the ability to create economic value while delivering positive environmental and social impact. "ESG is no longer just about meeting the expectations of regulators or investors," Kurniawan stated. "It has become the foundation for companies to build resilient, trusted, and relevant businesses in the long term. Through the ESG Award, we want to appreciate organizations that not only achieve good business performance but also demonstrate leadership in creating tangible impacts for the environment, society, and responsible governance."