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25 Februari 2026 - Release
On February 12, 2026, the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia/IAI) convened regulators, standard setters, financial institutions, preparers, academics, and international partners in Jakarta for Reporting Outlook 2026 and Strengthening Sustainability Practices in Indonesia. While the event provided important updates on financial and sustainability reporting developments, its central milestone was the official launch of the Indonesia Sustainability Reporting Forum (ISRF).
For IAI, the establishment of ISRF represents a strategic shift—from focusing primarily on issuing standards to strengthening the broader ecosystem required to implement them effectively.
Why ISRF, and Why Now?
Sustainability reporting is entering a new phase globally. What began as largely voluntary disclosure is rapidly becoming embedded in capital market expectations. Investors are seeking consistent, comparable, and decision-useful information about sustainability-related risks and opportunities that may affect enterprise value. Governments are setting net zero targets. Financial institutions are integrating climate risk into credit and investment decisions.
Indonesia is part of this global transition.
In 2025, IAI issued Sustainability Disclosure Standards aligned with the IFRS Sustainability Disclosure Standards, with an effective date of January 1, 2027. This step provides clarity and a defined transition timeline for Indonesian entities. However, during consultations and outreach for the standards, IAI recognized that implementation challenges extend well beyond technical interpretation of standards.
Many organizations understand what the standards require. The more difficult questions are practical:
These questions are not solved by standards alone. They require coordination, dialogue, and shared learning across stakeholders. ISRF was established in response to this need.
From Compliance to Transformation
ISRF serves as a structured platform that brings together regulators, ministries, financial institutions, listed companies, multinational corporations, industry associations, professional bodies, investors, and global partners. Its objective is to reduce fragmentation, strengthen alignment, and accelerate practical solutions for sustainability implementation in Indonesia.
Several recurring challenges motivated its creation.
First, there is often a gap between sustainability commitments and execution. Many organizations have announced ambitious targets, including net zero commitments, but these are not always fully integrated into corporate strategy, governance structures, risk management frameworks, or capital allocation decisions.
Second, implementation capacity varies significantly. Companies face limitations in data systems, methodologies, internal coordination, and sustainability expertise. Even with strong leadership commitment, translating ambition into measurable performance can be complex.
Third, fragmented expectations increase administrative burden. Organizations must navigate overlapping requirements from regulators, investors, financial institutions, and global initiatives. Without coordination, reporting can become reactive rather than strategic.
ISRF aims to address these challenges through structured, evidence-based dialogue and practical collaboration. Its activities include sector-specific and thematic roundtables, working groups, policy discussions, public seminars, capacity-building initiatives, and collaboration with international institutions.
Importantly, ISRF positions sustainability not as a reporting obligation, but as a transformation agenda. It focuses on:
By convening stakeholders in continuous dialogue, ISRF seeks to build shared understanding and coordinated action. High-level alignment can reduce uncertainty, support sustainable finance flows, and strengthen national resilience.
The Role of a PAO in Ecosystem Building
As a professional accountancy organization (PAO), IAI views its role as extending beyond standard setting. Issuing Sustainability Disclosure Standards was a critical step, but ensuring consistent and high-quality implementation requires ongoing engagement.
ISRF complements IAI’s standard-setting function by providing a practical platform for implementation support. It connects global developments with local realities. It brings technical requirements into conversation with operational challenges. It creates opportunities for peer exchange and capacity building.
This approach reflects IAI’s broader philosophy: sustainable transformation depends on collaboration. Regulators set direction. Standard setters provide frameworks. Companies implement. Investors respond. Professional organizations support education, ethics, and quality.
Through ISRF, IAI also reinforces cooperation with public authorities and global partners. The Reporting Outlook 2026 event underscored the importance of alignment between financial reporting reforms and sustainability initiatives. A resilient reporting ecosystem requires connectivity—not only between financial and sustainability disclosures, but also among institutions.
Looking Ahead
As Indonesia moves toward the 2027 effective date of its Sustainability Disclosure Standards and continues its journey toward Net Zero 2060, the focus is shifting from awareness to execution.
For accountants and financial professionals, this evolution brings both responsibility and opportunity. The profession is increasingly expected to translate sustainability-related risks and opportunities into financial implications, strengthen internal systems and controls, and ensure that disclosures are reliable and decision-useful.
ISRF is designed to support this transition. It is a platform for dialogue, alignment, and shared learning—one that can evolve as standards, markets, and expectations continue to develop.
Ultimately, sustainability reporting is not only about transparency. It is about strengthening governance, improving risk management, enabling better capital allocation, and building trust in markets. By launching ISRF, IAI has signaled its commitment to moving beyond compliance toward coordinated ecosystem development.