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Sustainability Reporting · ESG

What are PSPK 1 and PSPK 2, and when do they take effect in Indonesia?

Short answer

PSPK 1 and PSPK 2 are Indonesia's Sustainability Disclosure Standards, ratified by the IAI Sustainability Standards Board (DSK IAI) on 1 July 2025 and effective on 1 January 2027. They adopt IFRS S1 and IFRS S2 from the ISSB. The first reports reflecting PSPK are generally published in 2028 for the 2027 financial year, and early adoption is permitted.

What PSPK 1 and PSPK 2 are

PSPK stands for Pernyataan Standar Pelaporan Keberlanjutan (Sustainability Reporting Standards Statement), part of the Sustainability Disclosure Standards issued by the Sustainability Standards Board of the Indonesian Institute of Accountants. They adopt the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), placing Indonesia among dozens of jurisdictions aligning their sustainability reporting with the global framework.

PSPK 1, General Requirements

Sets the conceptual foundation and general requirements for disclosing sustainability-related financial information. Adopts IFRS S1.

PSPK 2, Climate-related Disclosures

Covers climate-related risks and opportunities, including Scope 1, 2, and 3 greenhouse-gas emissions. Adopts IFRS S2.

Timeline: when it applies

Four core content pillars

Following the IFRS S1/S2 framework, PSPK structures disclosure into four pillars: governance, strategy, risk management, and metrics and targets. This shifts sustainability reporting from descriptive narrative toward measurable disclosure that is connected to the financial statements and comparable across companies and countries.

Its relationship with POJK 51/2017

OJK has required sustainability reporting in stages since 2017 through POJK 51/POJK.03/2017. PSPK does not immediately replace it; PSPK is the more detailed, IFRS-aligned preparation standard. OJK supports PSPK and is moving toward revising POJK 51/2017 so issuers' sustainability disclosure becomes more comprehensive. For issuers, this means the basis of compliance shifts from narrative presentation toward standard-based, measurable disclosure.

What issuers should prepare now

Because the transition window is short, preparation should begin in 2026, especially for Scope 3 measurement, which needs data across the supply chain.

Frequently asked questions

How is PSPK different from POJK 51/2017?

POJK 51/2017 is the OJK regulation requiring sustainability reporting since 2017 (in stages). PSPK is the technical preparation standard adopting IFRS S1 and S2, more measurable and connected to the financial statements. OJK is moving toward revising POJK 51/2017 to align with PSPK.

Is PSPK mandatory for all listed companies?

PSPK is a preparation standard; the scope of who must apply it follows OJK provisions being prepared alongside the revision of POJK 51/2017. The standard is effective 1 January 2027, with early adoption permitted.

When is the first PSPK report published?

Generally in 2028, reflecting application during the 2027 financial year. Companies that opt for early adoption may report sooner.

What are Scope 1, 2, and 3 emissions?

Scope 1 = direct emissions from operations; Scope 2 = indirect emissions from purchased energy; Scope 3 = value-chain emissions (suppliers to product use). Scope 3 is the most complex because it needs data from many business partners.

Official sources

Preparing your sustainability report toward PSPK 2027?

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Compiled June 2026 from official IAI and OJK sources. Regulations may evolve; check the latest OJK and IAI provisions before making compliance decisions. This page is informational, not legal or accounting advice.