The introduction of Indonesia’s first Sustainability Disclosure Standards (SDS), PSPK 1 and PSPK 2, marks a significant shift for corporate reporting. Issued by the Institute of Indonesia Chartered Accountants (Ikatan Akuntan Indonesia (IAI)) in July 2025, these standards align Indonesia with the IFRS Sustainability Disclosure Standards (IFRS S1 and S2) developed by the International Sustainability Standards Board (ISSB).
Although PSPK 1 and PSPK 2 will not be effective till 1 January 2027, companies are expected to begin preparing much earlier. By the 2026 reporting cycle, organizations will need sustainability information that is structured, traceable, and ready to support future assurance requirements.
A CLOSER LOOK AT PSPK 1 & PSPK 2
Together, PSPK 1 and PSPK 2 shift sustainability reporting from narrative-driven disclosures to structured, decision-useful information. This means companies must ensure that sustainability data is well-governed, properly documented, and ready for future assurance engagements.
PREPARING FOR ASSURANCE UNDER PSPK
As PSPK implementation and enforcement approaches, companies are expected to strengthen the way they gather, validate, and manage sustainability data. This shift mirrors the discipline long applied to financial reporting: clear roles, documented processes, internal controls, and evidence-backed disclosures.
Readiness for assurance goes beyond compliance. It reflects the maturity of an organization’s sustainability governance—how sustainability data is collected across departments, how it is reviewed, and how management oversees the reporting process. A robust control environment ensures sustainability information can withstand scrutiny from regulators, assurance providers, and investors.
SUPPORTING BUSINESSES THROUGH THE TRANSITION
PSPK implementation will require closer collaboration between finance, risk, ESG, and operational teams. Many organizations are still building these capabilities, particularly in areas such as data governance, materiality assessment, and climate-related disclosures.
Moores Rowland Indonesia supports businesses through this transition. Through our sustainability reporting and ESG assurance services, we help businesses design reporting frameworks, assess readiness, identify material topics, and prepare for long-term compliance under PSPK 1 and PSPK 2.
As Indonesia enters a new era of sustainability reporting, early preparation offers more than compliance, it provides a strategic advantage.
Talk to our Sustainability & ESG Assurance team at Moores Rowland Indonesia to prepare your company for PSPK 1 and PSPK 2 implementation.
