Effective January 1, 2027, sustainability reporting in Indonesia will enter a new chapter. Two key regulations issued by the Indonesian Institute of Accountants (IAI) PSPK 1 and PSPK 2 will serve as the official framework for companies to disclose sustainability information in an integrated manner alongside their financial statements. This change is not merely administrative; it is strategic, as it will influence how businesses plan, execute, and report their sustainability initiatives.
What are PSPK 1 & PSPK 2?
PSPK 1 – General Requirements
PSPK 1, or General Requirements for Sustainability-Related Financial Disclosures, governs how companies must disclose all sustainability risks and opportunities that could impact their business prospects. This standard covers governance, strategy, risk management, as well as the metrics and targets to be reported. The scope is broad, encompassing environmental, social, and corporate governance issues.
PSPK 2 – Climate Focus
In contrast to the broader PSPK 1, PSPK 2 focuses specifically on climate-related risks and opportunities. It requires companies to identify physical risks such as flooding, drought, or heatwaves, as well as transition risks toward a low-carbon economy. PSPK 2 also mandates the measurement of greenhouse gas emissions (Scopes 1, 2, and 3) using internationally recognized methodologies, along with the implementation of scenario analysis to assess climate resilience.
Why PSPK 1 and PSPK 2 Matter for Businesses and the Challenges Ahead
Compliance with PSPK 1 and PSPK 2 delivers benefits that go far beyond fulfilling regulatory obligations. Transparent, standardized reporting can strengthen investor trust, expand access to green financing, and enhance corporate reputation. In a competitive global market, adherence to these standards can also serve as a differentiator that sets a company apart from its peers.
However, many businesses face significant challenges in meeting these requirements. Gathering accurate sustainability data often demands complex cross-departmental coordination. Linking non-financial data to financial statements requires the right methodology and consistent reporting practices. In addition, the lack of in-house expertise in sustainability reporting frequently becomes a major barrier.
How Greenwise Can Help?
Amid this complexity, Greenwise Consulting stands ready as your strategic partner. With multi-sector experience and a team of certified experts, we provide end-to-end solutions that include the development and implementation of PSPK 1 & PSPK 2, GHG emissions calculation in accordance with the GHG Protocol, decarbonization roadmap development, and climate resilience strategies. All sustainability reports we produce are integrated seamlessly with the company’s annual reports.
To address different levels of corporate readiness, Greenwise offers three flexible sustainability service packages:
Starter Plan – “Establishing ESG Foundations”
Designed for companies beginning their sustainability journey. This package includes ESG assessment, risk and opportunity identification, stakeholder mapping, ESG policy development, baseline GHG emissions calculation, and foundational PSPK 1 & 2 preparation.
Enabler Plan – “Strengthening Governance and Alignment”
Ideal for businesses seeking to strengthen governance and align sustainability strategies. In addition to all Starter Plan services, it includes advanced ESG roadmap development, strategic sustainability initiatives, and support in establishing an internal sustainability team.
Leader Plan – “Driving Integration and Sustainable Impact”
For companies ready to fully integrate sustainability across all operations and create long-term impact. This package includes all Enabler Plan services, plus fully integrated sustainability strategies, advanced reporting, and customized initiatives tailored to the company’s unique needs
Preparing Your Company for 2027
The transition period leading to 2027 is a critical opportunity to build a solid foundation for sustainability reporting. With Greenwise, you can ensure compliance with the Indonesian Sustainability Disclosure Standards while also leveraging global sustainability trends for long-term growth. Ready to develop your PSPK 1 & PSPK 2 roadmap? Contact Greenwise today.
