Indonesian construction firm ADHI notes strengthened ESG risk management

PT Adhi Karya (Persero) Tbk (ADHI), a prominent Indonesian state-owned construction enterprise, has achieved a notable improvement in its Environmental, Social, and Governance (ESG) risk management. The company's performance was recognized in the 2025 Shadow Rating ESG assessment, where its score improved to 32.33, signifying enhanced risk management practices.

This improved score comes at a time when investors and market participants increasingly prioritize sustainability as a key indicator of long-term business resilience. For the construction sector, which inherently faces significant risks related to workplace safety, environmental impact, and supply chain management, strong ESG performance is becoming crucial.

The Shadow Rating assessment, conducted by the Cooperation and Development Management Body (BKMP) of Airlangga University using Sustainalytics' methodology, evaluated ADHI across corporate governance, stakeholder relations, material ESG issues for the construction sector, and various risk factors. ADHI's ESG risk profile now stands slightly better than the global average for the Construction & Engineering sub-industry, which is around 32.8.

Rozi Sparta, Corporate Secretary of ADHI, stated that the company views ESG as a vital instrument for risk management and ensuring business sustainability. "ADHI sees ESG as an important foundation for maintaining business sustainability. Not only as fulfillment of governance standards and risk management instruments, but as an important part of driving business sustainability and improving the company's operational quality," Rozi said.

ADHI attributes its enhanced assessment to strengthened corporate governance, the implementation of anti-corruption policies, and an improved, more measurable sustainability reporting system. Looking ahead, the company plans to further bolster its ESG efforts by concentrating on key material issues for the construction industry. These include enhancing occupational health and safety, strengthening diversity and inclusion practices, and integrating ESG aspects more deeply into its overall risk management framework.

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ADHI sees ESG as an important foundation for maintaining business sustainability. Not only as fulfillment of governance standards and risk management instruments, but as an important part of driving business sustainability and improving the company's operational quality.