Sustainable Development Goal Disclosures in Indonesia: Challenges and Opportunities

REVIEW OF INTERNATIONAL GEOGRAPHICAL EDUCATION

ISSN: 2146-0353 ● © RIGEO ● 11(3), SUMMER, 2021 www.rigeo.org Research Article Sustainable Development Goal Disclosures in Indonesia: Challenges and Opportunities

Tommy Andrian1 Yuliana2 Faculty of Economics and Communication, Bina Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia Nusantara University, Jakarta, Indonesia [email protected]. [email protected]

Putriana Sulaeman3 Yoan Dwilliam Agata4 Faculty of Economics and Communication, Bina Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia Nusantara University, Jakarta, Indonesia [email protected] [email protected]

1Corresponding Author: Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia. E.mail: [email protected].

Abstract The purpose of this paper is to examine whether CSR activities in Indonesian companies support and align to the SDGs. The sample used in this study focuses on the non-financial sector listed on the Indonesia Stock Exchange with a total of 496 units of analysis consisting of 130 sustainability reports for the period 2017 to 2019 and 366 company annual reports in 2019. The content analysis method used was to analyze the sustainability report from 2017 to 2019 (three consecutive years) and the 2019 annual report to provide a complete analysis due to the lack of companies that disclose sustainability reports. The 2019 annual report content analysis shows that Indonesian companies tend to support the achievement of good health, quality education, gender equality, reducing inequality, peace and justice. In the sustainability reports for 2017 to 2019, companies disclose more CSR activities in line with SDGs good health, quality education, clean water and sanitation, economic growth, & partnership. The results from this analysis can be used to encourage companies to pay more attention to SDGs indicators that have not been achieved and try to map out CSR implementation that supports SDGs and links them to business activities. Then, the government should help provide guidelines that are still not maximally implemented by companies, and the government could appreciate companies that have supported SDGs to encourage company disclosure initiatives.

Keywords Sustainable Development Goals; SDGs Disclosure; Corporate Social Responsibility; CSR Implementation; Indonesia

To cite this article: Andrian, T.; Yuliana; Sulaeman, P, and Agata, Y, D. (2021) Sustainable Development Goal Disclosures in Indonesia: Challenges and Opportunities. Review of International Geographical Education (RIGEO), 11(3), 604-617 .Doi: 10.48047/rigeo.11.3.64 Submitted: 02-01-2021 ● Revised: 04-02-2021 ● Accepted: 03-03-2021 Andrian, T.; Yuliana; Sulaeman, P, and Agata, Y, D. (2021) Sustainable Development Goal Disclosures in…… Introduction

The differences of each country adapting to environmental conditions are an inhibiting factor in realizing the SDG goals, causing global problems currently being faced, such as implementing peace and health. That implements sustainable development varied, as seen by the different main focuses of achieving the SDGs. According to data from the Indonesian Statistic Bureau, (2021) referring to the 17 SDG goals, some indicators have not been conducted in Indonesia. In 2018, this indicator was the achievement of access to electricity (1.06%). In 2019 the indicators that have not been achieved were in the form of overcoming hunger (7.66%), health (5.18%), clean water (22.61%), poverty (10.19%), internet use (52.31%), peace (25.08%), and partnerships (27.75%). In 2020 these indicators were in the fields of education (1.71%), formal work (60.47%), inequality (38.54%), and sustainable cities (40.46%). CSR implementation could affect the SDGs, promoting sustainable development since there is a link between the two (García-Sánchez, et al.,2020). Based on Gunawan, et al. (2020) by making SDGs a target for business and CSR activities, companies could get many benefits and keep social risks at a lower level. Additionally, CSR could be used as a driver in achieving sustainability because it pays attention to the balance of social responsibility and corporate financial sustainability (Abdelhalim & Eldin, 2019). That indicates the need to seek information on CSR activities related to the SDGs. Good CSR information related to the SDGs requires good reporting, where one of the factors is the type of industry of a company (Ali et al.,2017). In the construction sector according to Xia et al., (2018). CSR activities are seen as terminology that’s also able to help achieve sustainable development, where the social dimension in CSR is considered the most dominant, such as education, skill acquisition, social procurement/enterprise, and daily reconciliation. In the textile sector, CSR could be implemented well with the help of initiatives from the government (Li, et al.,2020). Based on Latapí Agudelo et al., (2020) in the energy industry, CSR is an issue that is emphasized in response to social expectations of the SDGs implementation, which is used to maintain the social license in company operations. This emphasis includes aspects of human and labor rights, stakeholder engagement, environmental performance, and social impact. In the food sector, companies that implement CSR are considered superior because they care for environmental and social sustainability following the application of SDGs (Del Giudice et al., 2018). Based on this background, this study wants to discuss the gap between CSR and SDG by analyzing the annual financial statements of non-financial companies listed on the Indonesia Stock Exchange (IDX) in 2019 as well as the company’s sustainability reports from 2017 to 2019, which are an extension from the previous research (Gunawan et al., 2020). This research is expected to provide an updated overview regarding CSR implementation in Indonesia, which aligned with the SDGs indicators. Based on that, the objectives of this study are: (1) providing information on CSR in Indonesia that is aligned with the SDGs, (2) providing CSR activities that have been done by companies in the non-financial sector which are disclosed in annual financial and sustainability reports, and (3) provide an overview development of the number of sustainability report disclosures observed during the research period in the non-financial sector.

Literature Review

Some literatures (Fu, Wang, Zhang, Hou, & Li, 2019; Nilsson et al., 2018; Pradhan, Costa, Rybski, Lucht, & Kropp, 2017; Scharlemann et al., 2020) states that the 17 Sustainable Development Goals and targets interact inseparably with each other. The achievement of one goal or target can contribute to achieving other goals and targets, and these linkages form complex networks. Various SDGs linkage studies are used as the basis for the analysis of the Indonesian SDGs Roadmap. Some of the literature is publications from UN DESA (Le Blanc, 2015). Bappenas study reports Bappenas., (2019), and scientific publications supported by the Nippon Foundation (Singh, 2020). In Figure 1 from (Unicef., 2020) is a linkage analysis for the Indonesian SDGs starting for 43 targets and 17 objectives. The results of the analysis stated that of the 43 SDGs targets said that there were 17 targets out of 9 goals that had a powerful influence on other targets, with a low level of dependence, namely poverty targets (1.2), zero hunger (2.1 & 2.2), good health and wellbeing (3.3), clean water and sanitation (6.1 & 6.2), affordable and clean energy (7.1), economic growth (8.5), and reduced inequalities (10.1). These targets can be referred to as 605 © RIGEO ● Review of International Geographical Education 11(3), Summer 2021 targets with a high driving force. However in Indonesia, SDGs implementation is still not going well. This is reflected in the many shortcomings and problems that arise, such as the low human development index (Yorisca, 2020), the economic growth of the country, which almost entirely located on the islands of Java and Sumatra (Rahma, et al.,2019), unequal access to electricity (Setyowati, 2021), as well as the problem of poverty that has not been fully resolved (Ishatono & Raharjo, 2016). This shows the existence of inequality in Indonesia. Additionally, in the energy sector, which is the primary key for the SDG to run, even though it is running well, but still not according to the target set (Santika et al., 2020).

Indonesia has a program that determines nine development priorities for the next five years, known as Nawa Cita. It is hoped that with the existence of Nawa Cita in Indonesia, the state could become more politically sovereign, economically independent, and have a cultural personality (Ministry of National Development Planning Agency, 2021). The realization of the Nawa Cita program could be seen from several regulations implemented by the government, such as the goals of Nawa Cita that are related to Indonesia’s development from the fringe by strengthening regions and villages within the framework of a unitary state. This could be found in Law Number 6 of 2014 about the provision of Village Funds. Subsequently, related to realizing economic independence by moving strategic sectors of the domestic economy is based on Law No. 24 of 2019 Article 12 about the Creative Economic. Additionally, the national development system is regulated in Law Number 25 of 2004 (Audit Board of the Republic of Indonesia, 2004). The Nawa Cita Program could be aligned with sustainable development, which consists of 17 goals. The result of SDGs in Indonesia could be seen from each existing plan (Gunawan et al., 2020). According to the data from (Indonesian Statistic Bureau, 2020c) related to poverty (first SDG goal), Indonesia experienced an increase in poverty by 0.41% in 2020, which resulted in 10.19% (27.55 million) of the Indonesian population living in poverty Based on (Andrian, 2020) research, it is proven that poverty harms inclusive growth. Based on data released by (Global Hunger Index, 2020) related to the second SDG goal, Zero Hunger, Indonesia is ranked 70 out of 107 countries. Based on GHI calculations, Indonesia has a moderate hunger level, increasing from time to time to a severe category if it is not handled correctly. The third SDG goal, which is Good Health and Well-Being, Indonesia is ranked 125th out of 200 countries in 2021 with a score of 6.51 on the mortality rate. If the value is higher, the mortality rate would be higher, which means a severe problem (World Population Review, 2021). In Indonesia, a rapid increase occurs in obesity and non-communicable disease, while child malnutrition is among the highest in the world (Agustina et al., 2019), this shows that Indonesia is still struggling to achieve this third goal. In connection with the fourth SDG goal, Quality Education in Indonesia

606 Andrian, T.; Yuliana; Sulaeman, P, and Agata, Y, D. (2021) Sustainable Development Goal Disclosures in…… is still not good because based on the assessment of the Program for International Student Assessment in 2018, Indonesia is ranked 74th out of 79 countries. After being hit by the COVID-19 pandemic, education in Indonesia is done online, this requires internet access. According to Ladyanna and Aslinda, (2021) due to the insufficient internet power caused by the uneven distribution of the internet, students face difficulty accessing teaching materials and attending video conferences. Based on the UNDP 2020 Human Development Perspectives report related to the fifth SDG goal (Gender Equality), development to achieve gender equality would take 257 years. According to the Global Gender Gap Report 2020 from the (World Economic Forum, 2019), Indonesia ranks 85th out of 153 countries regarding gender equality issue. Even though the government has committed to addressing this problem by issuing Presidential Instruction No. 9 of 2000 about Gender Mainstreaming in achieving the SDGs, however, the government must strive harder to promote gender equality in development. The sixth SDG goal is Clean Water and Sanitation. Based on the (Organization of Water, 2020), around 24 million Indonesians lack clean water, and 38 million lack access to improved sanitation facilities. This is aligned with data from the Indonesian Statistic Bureau, 2019) which states that access to clean water is 84.91% and sanitation is 77.39%. The seventh SDG goal is Affordable and Clean Energy. Indonesia produced 46.4 million tons of crude oil in 2017. This was followed by an increase in natural oil consumption by 19% from 2007 to 2017. Oil products that could not meet consumer demand in society make Indonesia have to import oil. This situation resulted in Indonesia’s dependence on imports of petroleum and crude oil products simultaneously (Rudenko & Tanasov, 2020). The eighth SDG goal is Decent Work and Economic Growth. Based on (Arisman & Jaya, 2021) the number of Indonesian immigrant workers in all countries reach 4.1 million, with 1.2 million immigrants living in ASEAN. Most of the Indonesian immigrant workers are low-skilled workers. This is because the salaries of migrant workers abroad are higher than in Indonesia. Additionally, Indonesia still does not have specific labor laws and regulations for this sector. The ninth SDG goal is Industry, Innovation, and Infrastructure. The development of Telecommunication Base Transceiver System facilities that do not reach in Java Island is 0.46%, Sumatra Island 2.51%, Bali & NTT 6.44%, Sulawesi 7.9 %, Kalimantan 12.91%, and the worst is Maluku & Papua by 55.90% which still depend on District Internet Service Center which is different from complete facilities. Geographical factors and population distribution make the infrastructure process complex and costly (Oktarini & Kawano, 2019). Furthermore, according to Loosemore et al., (2019) the application of occupational health and safety has not been given attention to the Indonesian industry, which could endanger workers. Reduced Inequalities is the tenth SDG goal. Indonesian Statistic Bureau, (2020a) that the Gini Coefficient increased in September 2019 by 0.38% and March 2020 by 0.381. Due to the factors of economic pressure during the Covid-19 pandemic, the income of all people decreases. The eleventh SDG goal is Sustainable Cities and Communities. (Indonesian Statistic Bureau, 2020b) noted that the Gross Domestic Product (GDP) income in 2020, such as Java Island provided 59.14%, Sumatra Island 21.40%, Kalimantan Island 8.12%, Sulawesi Island by 6.19%, and Bali and Nusa Tenggara by 2.95%. Meanwhile, the lowest contribution was found in Maluku and Papua Islands. Responsible Consumption and Production is the twelfth SDG goal. According to (Amos & Lydgate, 2020), forests in Indonesia are being logged legally and illegally to sell timber and open up agricultural land for oil palm plantations. This has led to a reduction in the number of orangutans and other species. Additionally, there is drainage of peat swamps to make way for oil palm plantations and forest burning, which causes large amounts of trapped methane and carbon emissions released into the environment. Climate Action is the thirteenth SDG goal. Indonesia is a country with the fifth-largest emitter of greenhouse gases in the world (World Resources Institute, 2014). Nonetheless, according to (Kaneko & Kawanishi, 2016), Indonesia has made efforts to address climate change policies, with the government endorsing the National Action Plan for Reducing Greenhouse Gas Emissions and the National Greenhouse Gas Inventory as a Presidential Decree and ratified the Paris agreement into a legal document in 2016 and committed to reducing emissions by 2030. Life Below the water is the fourteenth SDG goal. Based on Yuwastina and Pannindriya, (2020) illegal fishing creates significant additional damage to the ecosystem. Indonesia has suffered trillions of rupiah in losses due to illegal fishing. Nonetheless, national enforcement of the 607 © RIGEO ● Review of International Geographical Education 11(3), Summer 2021 international agenda (SDGs) is considered to be running sufficiently visible from public awareness of maritime security threats, illegal, unreported, and unregulated fishing, and supporting government agencies to handle more cases. Life on land is the fifteenth SDG goal. There are challenges for managing forests and natural resources in implementing SDG number 15 in Indonesia. Indonesia officially classifies 91 million hectares (49.8 percent of its land area) as forest. However, most of this land is no more vast forest (Sayer et al., 2019). Additionally according to Hiratsuka et al. (2019), forest rehabilitation increased the carbon stock and management of biodiversity that contribute to SDG number 15. This is related to the success of forest rehabilitation and a reduced incidence of forest fires. Peace Justice and Strong Institutions is the sixteenth SDG goal. SDG number 16 in Indonesia covers most of the civil and political dimensions of human rights. Most of these civil and political rights are also stated in the 1945 Constitution and Law No. 39 of 1999 on Human Rights. In 2016, the National Commission of Human Rights, (2016) received 142 reports on torture. The Indonesian justice sector is still facing problems related to accountability in its justice system. However, the (World Justice Project, 2020) shows that in the World Justice Index the overall value of Indonesian legal principles increased by 1.3%. Indonesia is ranked 59th out of 128 countries and jurisdictions worldwide, rising four ranks in the global order. Partnership for The Goal is the seventeenth SDG goal. Quoted from the Ministry of National Development Planning of the Republic of Indonesia, this goal has several targets, increasing the global partnership for sustainable development (Ministry of National Development Planning Agency, 2021). The progress of this goal could be seen from one of the Indonesian and Australian projects related to the COVID-19 development response. Additionally based on (Australian Embassy Indonesia, 2021), there is also a partnership program between the Australian government and the Government of Indonesia, which would be launched to contribute to an inclusive democracy in Indonesia, called the Australia-Indonesia Partnership Towards an Inclusive Society.

Method

Research Design

Researchers used an exploratory qualitative approach to do this research. Additionally, the researchers use the SDGs objective as a disclosure checklist by using the content analysis method. The period used in this research on sustainability reports is 2017 to 2019. Meanwhile, the annual report analyzed in the study is 2019, since it was the latest annual report when the research was conducted.

Sample

The sample used in this study focuses on the non-financial sector listed on the Indonesia Stock Exchange with a total of 496 units of analysis consisting of 130 sustainability reports for the period 2017 to 2019 and 366 company annual reports in 2019. The SDGs were used as the basis for the disclosure checklist analysis in this study. This is done to convey information on whether the CSR activities are aligned and support the SDGs set by the government. Additionally, the method used in this study is content analysis, which has been frequently used in previous CSR researches (Dobbs & van Staden, 2016; Gunawan et al., 2020; Liao, Shih, et al., 2018; Mirzoev et al., 2021; Park, et al., 2019).

Data Collecting Instrument

Several researchers did the content analysis in this study to reduce subjectivity. Additionally, to understand the types of information disclosed in sustainability reports and annual reports, coding is done first. The code consists of “1” and “0” which are dummy variables. Code “1” means disclosure within the company is according to one of the SDGs objectives, while code “0”

608 Andrian, T.; Yuliana; Sulaeman, P, and Agata, Y, D. (2021) Sustainable Development Goal Disclosures in…… means the opposite. Then, the information results are analyzed, and if there are significant differences, a review would be carried out. If there is no significant difference, the researchers will record a score based on the discussion results (Gunawan et al., 2020). Additionally, researchers also explore business and CSR activities according to the SDGs by understanding disclosures and matching the meaning with SDGs.

Implementation Process

The application was carried out for eight weeks. The study process starts from the collection of non-financial sector annual report data during 2019 obtained from the Indonesia Stock Exchange website and non-financial sector sustainability report data for the 2017-2019 period from the company's website. Then, the data were analyzed using content analysis through a Microsoft Excel working paper. Then the information results are analyzed. If there are significant differences, a review would be carried out. If there is no significant difference, the researchers will record a score based on the discussion results.

Findings

We classify CSR activities that support SDG points carried out by companies in Indonesia based on their timeframe, namely short-assistance and long-assistance. For the short-term assistance category, the average company carrying out activities related to SDG goals, such as companies carrying out cheap food programs and helping villages; provide supplementary food and milk for mothers, parents and children; providing health products and services for employees and the public; provide scholarships and free education for students, communities, or employees; provide equal employment opportunities (recruitment, position, remuneration, awards, training) for male and female employees; provide clean water facilities (septic tanks) for residents around the company location; making energy-saving policies; prioritizing local labor and local suppliers (usually from local communities); conducting research and innovation in operational activities (products, tools, techniques); applying equal treatment in the workplace (recruitment, position, remuneration, rewards, training) regardless of ethnicity, religion, race, and between groups; perform maintenance of public facilities; has a hazardous waste management and storage permit from an official agency; the use of electronics (refrigerators, air conditioners, vehicles) is more environmentally friendly in the company; & support religious activities. On the one hand, information related to goals related to life on land and partnerships to achieve goals has not been found. For the long-term assistance category, the average company carrying out activities related to SDG goals, such as give long-term interest-free credit for farmers; conduct training on nutritious food for mothers; mentoring or assistance program at the integrated healthcare center; build or renovate school buildings or facilities; establish a gender committee; establish sanitation facilities and infrastructure; build a shelter and conserve rainwater utilization; build a Solar Power Plant and a Hydro Power Plant; provide assistance, coaching, marketing assistance, loans, and capital to the Micro Small Medium Enterprise (MSME); participate in the development of an internet network; build and renovate facilities, infrastructure, public and social facilities; implementing the Reduce, Reuse, and Recycle; carry out control, calculation, testing, and efforts to reduce emissions; conduct conservation, rehabilitation, and cultivation of marine animals or plants; establish an anti-corruption policy and a whistleblowing system; & working closely with stakeholders. On the one hand, information related to goals related to reducing inequality has not been found.

Sustainability Report Disclosure

In table 1, presents the calculated data and the percentage of disclosure in the sustainability report from 2017 to 2019 based on the non-financial sector and subsector companies listed in the 2019 factbook from IDX.

609 © RIGEO ● Review of International Geographical Education 11(3), Summer 2021

Table 1 Sustainability Report Disclosure

No Sector 2017 2018 2019 Total Subsec Sect Total Subsec Sect Total Subsec Sect tor (%) or tor (%) or tor (%) or (%) (%) (%)

1. Agriculture 11. Crops 0 0.00% 25.0 0 0.00% 23.8 0 0.00% 23.8 0% 1% 1% 12. Plantation 5 27.78% 5 27.78% 5 27.78% 13. Animal - - 0 0.00% 0 0.00% Husbandry 14. Fishery 0 0.00% 0 0.00% 0 0.00% 2. Mining 21. Coal Mining 5 20.00% 21.7 5 20.00% 23.4 7 28.00% 27.6 4% 0% 6% 22. Crude 2 20.00% 2 18.18% 2 18.18% Petroleum & Natural Gas Production 23. Metal and 3 33.33% 4 44.44% 4 44.44% Mineral Mining 24. Land/Stone 0 0.00% 0 0.00% 0 0.00% Quarrying 3. Basic Industry and Chemicals 31. Cement 5 83.33% 6.94 5 83.33% 9.86 5 83.33% 12.6 % % 8% 32. Ceramics, 0 0.00% 0 0.00% 0 0.00% Glass, Porcelain 33. Metal and 0 0.00% 0 0.00% 0 0.00% Allied Products 34. Chemicals 0 0.00% 1 7.69% 2 15.38% 35. Plastics & 0 0.00% 0 0.00% 1 9.09% Packaging 36. Animal Feed 0 0.00% 1 20.00% 1 20.00% 37. Wood 0 0.00% 0 0.00% 0 0.00% Industries 38. Pulp & 0 0.00% 0 0.00% 0 0.00% Paper 39. Other 0 0.00% 0 0.00% 0 0.00% 4. Miscellaneous Industry 41. Machinery 1 25.00% 3.17 1 25.00% 4.55 1 25.00% 4.55 and Heavy % % % Equipment 42. Automotive 1 7.69% 2 15.38% 2 15.38% and Components

610 Andrian, T.; Yuliana; Sulaeman, P, and Agata, Y, D. (2021) Sustainable Development Goal Disclosures in……

43. Textile, 0 0.00% 0 0.00% 0 0.00% Garment 44. Footwear 0 0.00% 0 0.00% 0 0.00% 45. Cable 0 0.00% 0 0.00% 0 0.00% 46. Electronics 0 0.00% 0 0.00% 0 0.00% 5. Customer Good Industry 51. Food and 1 4.17% 6.12 1 3.70% 9.62 1 3.70% 11.5 Beverages % % 4% 52. Tobacco 0 0.00% 0 0.00% 1 25.00% Manufacturers 53. 1 9.09% 3 30.00% 3 30.00% Pharmaceutical s 54. Cosmetics 1 20.00% 1 16.67% 1 16.67% and Household 55. Houseware 0 0.00% 0 0.00% 0 0.00% 56. Others 0 0.00% 0 0.00% 0 0.00% 6. Property, Real Estate and Building Construction 61. Property 1 1.89% 7.25 1 1.69% 7.89 3 5.08% 10.5 and Real Estate % % 3% 62. Building 4 25.00% 5 29.41% 5 29.41% Construction 7. Infrastructure, Utilities and Transportation 71. Energy 1 14.29% 7.14 1 14.29% 6.76 2 28.57% 12.1 % % 6% 72. Toll Road, 1 16.67% 1 16.67% 1 16.67% Airport, Harbor and Allied Product 73. 1 20.00% 1 16.67% 1 16.67% Telecommunica tion 74. 2 5.13% 2 4.76% 4 9.52% Transportation 75. Non-Building 0 0.00% 0 0.00% 1 7.69% Construction

The Agriculture sector had a disclosure percentage of 25% in 2017 and decreased to 23.81% in 2018 and 2019. The mining sector had a disclosure percentage of 21.74% in 2017, then increased to 23.40% in 2018 and 27.66% in 2019. The Basic Industries and Chemicals sector has increased in the last three years, which are 6.94% (2017), 9.86% (2018), and 12.68% (2019). The Miscellaneous Industry sector experienced an increase from 3.17% in 2017 to 4.55% in 2018 and 2019. The Consumer Good Industry sector in 2017 has increased by a percentage to 6.12%, compared to 2018 of 9.62% and 11.54% in 2019. The Property, Real Estate, and Building Construction sectors have an increasing percentage in the last three years, such as 7.25% in 2017, 7.89% in 2018, and 10.53% in 2019. The Infrastructure, Utilities, 611 © RIGEO ● Review of International Geographical Education 11(3), Summer 2021 and Transportation sectors had a percentage of 7.14% in 2017 then decreased to 6.76% in 2018. In the Agriculture and Infrastructure, Utilities, and Transportation sectors, the percentage of disclosures decreased due to companies listed on the Indonesia Stock Exchange (IDX) in the Animal Husbandry, Telecommunication, and Transportation subsectors. However, the company does not make disclosures which cause the denominator to be larger and the numerator to remain so that the percentage is smaller. Whereas in the Mining, Basic Industry and Chemicals, Miscellaneous Industry, Consumer Good Industry, and Property, Real Estate and Building Construction sectors, there was an increase in the percentage of disclosures due to the addition of companies that made sustainability report disclosures in the subsector of Metal and Mineral Mining, Chemicals, Animal Feed, Automotive and Components, Pharmaceuticals, and Building Construction in 2018, then in 2019 in the subsector of Coal Mining, Chemicals, Plastics & Packaging, Tobacco Manufacturers, Property and Real Estate. Based on the explanation above, it is apparent that the disclosure of sustainability reports based on the calculation of the highest percentage in 2017 and 2018 is in the Agriculture sector, which is 23.81%. That is because Agriculture is the leading sector in the government’s SDG program. Meanwhile, the highest percentage calculation in 2019 is in the Mining sector, which is 27.66%. The increase in disclosure in the mining sector is due to the determination of targets for the reclamation of ex-mining land by the government and the company’s obligation to carry out that. The industry with the lowest percentage calculation is in the Miscellaneous Industry, which is 3.03% in 2017 and 4.55% in 2018 and 2019. This is probably due to a decline in economic growth in that sector, which has led to the implementation and disclosure of CSR challenging to do.

Total Disclosure Scores that Support the SDG’s

Figure 2 shows the total score for each SDG’s point obtained from the annual financial report for the period 2019. Figure 4 shows the total score for each SDG’s point obtained from the sustainability report from 2017 to 2019.

Figure 2.Ranking SDG’s Disclosures for All Companies Based on 2019 Annual Report

In Figure 2, it could be seen that the highest result of SDG’s disclosure is in Goal 4 (9.35%), followed by Goal 3 (9.15%), Goal 16 (8.82%), Goal 5 (8.23%), and Goal 10 (7.27%). Meanwhile, the lowest result of SDG disclosure is in Goal 14 (0.76%). Based on this, it could be said that the quality of education in Indonesia is a matter of concern for companies. According to (Adeniyi, Ajayi, & Adedeji, 2021), education is a significant part of solving educational and economic problems in society. In line with this statement, (Ferguson & Roofe, 2020) says that none of the 17 Sustainable Development Goals could be achieved without the contribution of higher 612 Andrian, T.; Yuliana; Sulaeman, P, and Agata, Y, D. (2021) Sustainable Development Goal Disclosures in…… education and research. Therefore, companies try to get involved by giving their role to the education sector, which indirectly supports the entire SDGs. The problems of educators and the economy in Indonesia could be resolved. Meanwhile, the 14th goal is still low because the company is more interested in carrying out CSR activities that directly impact society to increase its good name indirectly.

In Figure 3, it could be concluded that all goals have increased from year to year in SDG except for goals 1, 10, and 14. Goal 1 and goal 10 in the first two years have not changed because several companies implementing programs related to the 1st goal only in 2017 and 2018 increased in the last year due to the addition of companies making disclosures. Goal 14 has decreased in 2019 due to the lack of exposure to the CSR program for that year. Through the analysis of the sustainability report, it could be seen that goals 3, 4, 8, 17, and 6 are the goals most companies have expressed. Meanwhile, goals 14, 9, and 1 were disclosed the least. Based on the analysis of the information contained in the company’s sustainability report, the researcher could conclude that Indonesian companies tend to focus their CSR activities on the health and education sectors, which support SDG goals 3 and 4. The results obtained by these researchers are the same as previous studies conducted by (Gunawan et al., 2020). The company chose the two goals because it is closely related to community problems in developing countries.

Conclusions and Discussion

Based on the research that has been done, it could be concluded that the disclosure of SDGs in Indonesia is still deficient. This could be seen from the percentage of exposure related to SDGs in annual and sustainability reports that do not reach 50%. Besides, it could also be concluded that companies in Indonesia in the 2019 yearly report tend to focus more on SDGs goal number 3, 4, 5, 10, and 16. In the sustainability reports for 2017 to 2019, companies disclose more CSR activities in line with SDGs goal number 3, 4, 6, 8, and 17 goals. In the grouping of CSR activities based on their duration (short-assistance & long-assistance), several goals do not have a plan. This is found in goals 15 and 17 that still do not have a short-term project. The absence of such short-term plans is because the company prioritizes programs that have future benefits, such as land reclamation and contract cooperation. Meanwhile, the 10th goal still does not have a long-term plan because no particular program is carried out routinely.

Another reason that could be put forward is related to companies in Indonesia that do not disclose much information on SDGs because many companies have carried out CSR activities without paying attention to the agreed SDGs indicators and it is still focusing on targets at the primary level that are considered capable of effectively encouraging the achievement of other targets, namely education and health but still not maximized on energy efficiency and increasing renewable energy. This research has implications for companies to pay more attention to SDGs indicators that have not been achieved and try to map out CSR implementation that supports SDGs and links them to business activities. Then, the government should help provide guidelines that are still not maximally implemented by companies, and the government could appreciate companies that have supported SDGs to encourage company disclosure initiatives. This study has two limitations. First, the small number of company sustainability reports in the non- financial sector has resulted in the lack of information available in Indonesia. Second, there is subjectivity in conducting content analysis in assessing CSR & SDGs activities. Future research is recommended to use all existing corporate sectors in Indonesia for a more extended period so that more comprehensive information could be obtained. Besides, it is hoped that future research would not only use secondary data (annual report and sustainability reports) but could also use mixed research with additional primary data to support research results, one of which is by conducting in-depth interviews with company managers per sector related to the company’s CSR activities. Researchers would get more detailed data to help determine the company’s long and short-term CSR activities and be aligned with the SDGs.

Biographical Statements

Tommy ANDRIAN is an Accounting Lecturer at the Department of Accounting, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia. His research interest is in the field of environmental accounting, sustainability reporting, and geography education. Scopus ID: 57211446775. YULIANA is an Accounting Student, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia. Her research interest is in the field of environmental accounting and geography education. Putriana SULAEMAN is an Accounting Student, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia. Her research interest is in the field of environmental accounting and geography education. Yoan Dwilliam AGATA is an Accounting Student, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, Indonesia. His research interest is in the field of environmental accounting and geography education.

References

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