IAI Officially Approves Sustainability Disclosure Standards 

On July 1, 2025, the Sustainability Standards Board of the Institute of Indonesia Chartered Accountants (DSK IAI) officially approved the Sustainability Disclosure Standards (SPK), which consist of PSPK 1 and PSPK 2. This standard will become effective starting January 1, 2027, and adopts the IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2) published by the International Sustainability Standards Board (ISSB). 

For companies in Indonesia, this is not just a change in administrative procedures; it is a fundamental transformation in how organizations report their performance and risks. Non-compliance risks incurring sanctions, reputational damage, and the loss of investor trust. With the approval of this SPK, Indonesia officially joins 33 jurisdictions in the world that have adopted the global sustainability reporting framework. 

What Are PSPK 1 and PSPK 2? 

The Sustainability Disclosure Standards (SPK) published by IAI adopt the IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2) issued by the International Sustainability Standards Board (ISSB). With this publication, Indonesia officially joins 33 jurisdictions in the world that have adopted the global sustainability reporting framework. 

Both cover four main pillars: governance, strategy, risk management, as well as metrics and targets. 

PSPK 1 contains general disclosure requirements, including the conceptual framework, location and timing of reporting, up to four core contents: governance, strategy, risk management, as well as metrics and targets for all sustainability risks and opportunities. 

PSPK 2 focuses the application of these four core contents on climate issues. This standard becomes a key instrument in Indonesia’s transition toward a low-carbon economy. 

The Importance of Your Company Reporting PSPK 1 and 2 

1. Compliance   

PSPK 2 requires companies to disclose:   

• Climate-related risks: physical risks (such as flooding, drought) and transition risks (such as regulatory changes, shifts to a low-carbon economy)   
• Climate-related opportunities: how organizations can benefit from climate action   
• Governance and strategy: how the company manages and oversees climate-related risks   
• Metrics and targets: organizations must establish and disclose specific climate-related goals, such as carbon emission reductions, energy usage, and sustainability targets   

PSPK 1 itself enforces the materiality and reliability of the disclosed information.

2. Organization Development

The integration of financial and non-financial data systems is a must. Companies need to develop:   

• New capabilities in climate risk modeling
• Reliable ESG data governance  
• Cross-departmental collaboration for “connected reporting”

3. Competitiveness   

Global investors currently prioritize companies that are transparent in ESG and aligned with ISSB standards. Companies that adopt SPK will be perceived as better prepared to face global expectations whether from investors, trading partners, or international regulators. Ardan Adiperdana, Chairman of the IAI National Council, stated that SPK is not just about compliance; it is a long-term strategy to strengthen national economic resilience amidst the climate crisis and global transformation. 

Challenges of PSPK 1 & 2 Implementation 

There are three main challenges faced by organizations:   

1. Skills Transformation: Financial and ESG teams require specialized training  
2. Readiness Gap: Every business needs a specific compliance roadmap   
3. Data Integration: HR policies must align with data collection and reporting processes

How Can Companies Prepare Themselves? 

To face this regulatory change effectively, companies need to consider the following steps:   

1. Review existing bookkeeping and administrative processes 
2. Ensure financial reports are accurate, organized, and up to date   
3. Assess the potential impact on budgets and business plans   
4. Strengthen collaboration between finance, operations, and HR functions   
5. Build organizational readiness to respond to future regulatory developments  

Consult Your Company’s Readiness 

Do not delay until close to the deadline. Sinergis is ready to assist your organization in transforming to face the new era of sustainability reporting.

As an HR Management & Shared Services consultant, Sinergis helps organizations remain aligned with evolving regulatory needs through effective governance, compliance support, and structured business processes.

Visit sinergis.co.id and contact us right now via WhatsApp or our email right now! 

References 

1. Ikatan Akuntan Indonesia (IAI). (2025). Indonesia Launches Sustainability Disclosure Standards based on IFRS S1 and S2.
2. Ikatan Akuntan Indonesia (IAI). (2025). Standar Pengungkapan Keberlanjutan Efektif Per 1 Januari 2027. 
3. KPMG. (2025). At a glance: PSPK1 & PSPK2.  

Tags: #PSPK1 #PSPK2 #SustainabilityReporting #ESG #RegulasiKeberlanjutan #IAI #IFRS #PelaporanIklim