Indonesia’s SPK 2027: A Complete Guide to the New Sustainability Disclosure Standards

Indonesia’s Standar Pengungkapan Keberlanjutan (SPK) will come into force on 1 January 2027, introducing a mandatory, investor-focused sustainability disclosure framework aligned with global standards. This guide sets out what organisations need to understand and act on ahead of the deadline.

What is SPK and Why It Matters

On 1 July 2025, Indonesia formally ratified its first national sustainability disclosure standards through the Indonesian Sustainability Standards Board (DSK IAI), in coordination with Bank Indonesia, the Ministry of Finance, and the Financial Services Authority (OJK).

SPK represents a fundamental shift in sustainability reporting:

• From impact-focused reporting to financial risk and opportunity disclosure

• From voluntary narratives to mandatory, structured reporting

• From standalone sustainability reports to integrated financial disclosures

Unlike OJK Regulation No. 51/2017 (POJK 51), which emphasises a company’s impact on society and the environment, SPK requires organisations to disclose how sustainability-related risks, such as climate change and resource scarcity, affect:

• Financial performance

• Business strategy

• Long-term enterprise value

This brings Indonesia into alignment with leading jurisdictions, including the United Kingdom, Australia, and Singapore.

Understanding PSPK 1 and PSPK 2

SPK comprises two interdependent standards that must be applied together:

PSPK 1 – General Requirements for Sustainability Disclosure

• Covers all material sustainability-related risks and opportunities

• Establishes disclosure principles and reporting structure

• Applies across environmental, social, and governance (ESG) topics

• Based on IFRS S1, with local adaptations

PSPK 2 – Climate-Related Disclosures

• Focuses specifically on climate-related risks and opportunities

• Requires identification of physical and transition risks

• Mandates disclosure of GHG emissions (Scopes 1, 2, and 3)

• Requires climate scenario analysis (e.g. 1.5°C and 2°C pathways)

• Based on IFRS S2 and aligned with TCFD recommendations

Important note: While PSPK 2 mandates climate-related disclosures, broader ESG disclosures under PSPK 1 are currently encouraged but not yet fully mandatory.

The Four Core Disclosure Areas

SPK adopts the ISSB and TCFD structure, requiring disclosures across four core pillars:

1. Governance

• Oversight of sustainability-related risks at the board level

• Roles, responsibilities, and decision-making processes

2. Strategy

• Impact of sustainability risks and opportunities on the business model

• Short-, medium-, and long-term implications

3. Risk Management

• Processes for identifying, assessing, and managing risks

• Integration with enterprise risk management (ERM)

4. Metrics and Targets

• Key performance indicators (KPIs)

• Emissions data (Scopes 1–3)

• Targets and progress monitoring

Key distinction: Sustainability disclosures are no longer separate reports—they must be integrated within financial reporting frameworks.

Who Will Be Required to Comply

The final scope will be confirmed by OJK; however, the SPK Roadmap indicates that the mandatory application will focus on:

• IDX-listed companies

• Financial institutions (banks, insurers, and capital market participants)

• Other publicly accountable entities currently subject to POJK 51

Early adoption is permitted and strongly encouraged, particularly for organisations with:

• International investors

• Global supply chain exposure

• EU regulatory obligations (e.g. CSRD or CSDDD)

Regulatory Timeline

Year	Milestone
December 2024	SPK Roadmap published
1 July 2025	PSPK 1 and PSPK 2 ratified
11 August 2025	National launch
2026	Preparation period and voluntary adoption
1 January 2027	Mandatory implementation
Early 2028	First SPK-aligned reports published

How to Prepare for SPK 2027

Organisations that treat SPK as a strategic transformation, rather than a compliance exercise, will be better positioned to strengthen governance, enhance risk management, and communicate value to investors.

1. Conduct a Gap Analysis

Assess current reporting practices (e.g. POJK 51, GRI) against PSPK 1 and PSPK 2 requirements.

2. Perform an ISSB-Aligned Materiality Assessment

Identify sustainability risks and opportunities that could affect:

• Financial position

• Cash flows

• Business prospects

3. Develop a GHG Emissions Inventory

Establish systems to measure:

• Scope 1, 2, and 3 emissions

  
  

  (using recognised methodologies such as the GHG Protocol)

4. Strengthen Governance Structures

Ensure effective board oversight through:

• Clear accountability

• Appropriate expertise

• Defined governance processes

5. Establish Data Systems and Internal Controls

Reliable, auditable sustainability data is essential for:

• Accurate disclosures

• Future assurance readiness

6. Conduct Climate Scenario Analysis

Evaluate organisational resilience under:

• 1.5°C scenarios

• Higher warming pathways

7. Integrate Sustainability with Financial Reporting

Align sustainability disclosures with:

• Financial statements

• Risk disclosures

• Strategic planning processes

8. Consider Early Adoption (2026)

Early adopters benefit from:

• Enhanced investor confidence

• A smoother transition

• First-mover advantage

9. Prepare for Independent Assurance

While not yet mandatory, external assurance is increasingly expected by regulators and the market.

SPK is not merely a reporting requirement; it represents a fundamental shift in how organisations define, measure, and communicate value.

Delayed preparation may lead to:

• Compressed implementation timelines

• Weak data quality

• Increased regulatory scrutiny

Early action, by contrast, enables organisations to:

• Build investor trust

• Improve access to capital

• Strengthen positioning within global markets.

References

(August 12, 2025). Release of the Sustainability Disclosure Standards. Sustainable Finance OJK. https://keuanganberkelanjutan.ojk.go.id/keuanganberkelanjutan/en/newsmedia/detailnews/3842/peluncuran-standar-pengungkapan-keberlanjutan-iai

 (August 7, 2025). Indonesia Launches Sustainability Disclosure Standards based on IFRS S1 and S2. Indonesian Institute of Accountants. https://web.iaiglobal.or.id/Berita-IAI/detail/indonesia_launches_sustainability_disclosure_standards_based_on_ifrs_s1_and_s2

(n.d.). ROADMAP OF INDONESIAN SUSTAINABILITY DISCLOSURE STANDARDS. https://web.iaiglobal.or.id/assets/files/file_sak/Roadmap%20SPK_English.pdf

(August 12, 2025). Release of the Sustainability Disclosure Standards. OJK. https://keuanganberkelanjutan.ojk.go.id/keuanganberkelanjutan/en/newsmedia/detailnews/3842/peluncuran-standar-pengungkapan-keberlanjutan-iai