Universitas Gadjah Mada
Faculty of Economics and Business

The Laboratory of Accounting at the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM) recently organized the PKASL Seminar Series entitled "Evaluating DE PSPK 1 and DE PSPK 2: Insights and Recommendations for the Standard Boards". On Friday, January 17, 2025, the organizers held a seminar on the 5th floor of the Pertamina Tower building. About 30 participants attended, including academics, researchers, and PhD and Masters students interested in sustainability accounting.

The event featured two keynote speakers, Singgih Wijayana, S.E., M.Si., Ph.D., CA., and Zuni Barokah, S.E., M.Comm., Ph.D., CA., academics from FEB UGM.esearch. The seminar aimed to discuss and evaluate the Exposure Draft of Sustainability Disclosure Standards (PSPK) 1 and 2, released by the Indonesian Institute of Accountants (IAI) in December 2024.

Mr. Singgih Wijayana highlighted the importance of evaluating the Exposure Draft of Sustainability Disclosure Standards (PSPK) 1 and 2 and Climate-Related Disclosures. He emphasized that IAI is committed to strengthening the sustainability reporting ecosystem by adopting international standards and preparing the necessary infrastructure for sustainability reporting in Indonesia by establishing the IAI Sustainability Standards Board (DSK IAI).

"DSK IAI will develop a strategic plan as a basis for creating sustainability reporting standards aligned with regulations and the readiness of the sustainability reporting ecosystem," he said.

He also emphasized the opportunities these standards provide for researchers to conduct further studies and their importance as a reference for companies seeking to improve transparency in sustainability reporting.

Singgih also noted that one of the key challenges in financial reporting in Indonesia is the separation of sustainability reports from primary financial statements. Many companies have adopted sustainability reporting standards but often present the information in separate documents on their websites.

"Sustainability reports and financial statements should be linked, not independent. By adopting international standards such as International Financial Reporting Standards (IFRS) S1 and S2, companies in Indonesia can improve the quality of their reporting and make it more credible," said Singgih.

Meanwhile, Zuni Barokah discussed the review of the Exposure Draft for Sustainability Disclosure Standards. She explained that PSPK 1 and 2 were adapted from international standards while considering local characteristics and needs.

Zuni highlighted that PSPK 1 sets out requirements for disclosing information about sustainability risks and opportunities that are useful to the primary users of financial reports in making resource allocation decisions. Meanwhile, PSPK 2 requires disclosing information about climate risks and opportunities, such as the impact of extreme weather events, the transition to a low-carbon economy, and other sustainability opportunities.

PSPK 1 and 2 encourage companies to enhance transparency in governance, strategy, risk management, and sustainability metrics and targets. These standards will take effect on January 1, 2027.

Reportage: Shofi Hawa Anjani
Editor: Kurnia Ekaptiningrum

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