BPKP publishes ESG assessment guidelines for SOEs

This guideline aims to support increasing the value of SOEs by integrating ESG

Jakarta (Armfalcon.com) – The Financial and Development Supervisory Agency (BPKP) has issued guidelines for assessing the application of environmental, social and governance factors or environmental, social, and governance or ESG for state-owned enterprises (BUMN) as a reference for assessment in the second quarter of 2023.

“This guideline aims to support improvement value SOEs by integrating ESG and also supporting target achievement enhanced nationally determined contribution (NDC) Indonesia,” said Deputy Head of BPKP for State Accountants Sally Salamah in a statement in Jakarta, Wednesday.

Sally explained that the guidelines cover environmental, social, governance and economic indicators, which are intended to identify area of ‚Äč‚Äčimprovement (AoI) in around 23 SOEs.

In this way, the guidelines are expected to improve the quality of ESG implementation in each SOE, accelerate SOE support for long-term sustainability goals, and provide policy recommendations to the government.

“BPKP also encourages BUMN to continue to be committed to supporting the implementation of good corporate governance, especially in integrating ESG in decisions taken by corporate organs,” said Sally.

BPKP’s initiative in issuing ESG assessment guidelines for SOEs received support from the Deputy for Finance and Risk Management of the Ministry of SOEs Nawal Nely.

Nawal said the implementation of ESG is a necessity for BUMN. Therefore, these guidelines can assist SOEs in upholding ESG reporting and implementation in a sustainable manner.

“This is a necessity because SOEs need to get it rated funding and implemented in daily business activities and on an ongoing basis,” he said.

The importance of implementing ESG in SOEs was also expressed by Monash University Indonesia Vice President of Engagement Grace Wangge.

According to Grace, the ESG assessment guidelines issued by BPKP are significant in encouraging the application of ESG in SOEs.

In line with Grace, System Lead for Sustainable Finance at the ClimateWorks Center John Vong also said that the ESG assessment guidelines have an important role for SOEs.

“This ESG assessment guideline will accelerate the development of Indonesia’s decarbonization targets for all SOEs,” he explained.

BPKP has collaborated with experts from Monash University Indonesia and the ClimateWorks Center in developing the capacity of internal auditors in ESG supervision since 2022.

One form of this collaboration is by issuing ESG assessment guidelines for SOEs. In addition, the collaboration of the three has also carried out several other activities, such as training, seminars and focus group discussions (DKT).

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Reporter: Imamatul Silfia
Editor: Click Dewanto
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