Development of Sustainability Reporting Guidelines for Indonesian Local Government

Abstract

Organizations that concerned on profit without responsiveness on environmental and social influences created from business operations, consequently cannot hold its life in the long term (sustainable). The government as a public sector organization is obliged to pay attention to the three pillars of sustainability, namely: 1) Earth (planet) along with all its contents, plants and animals-Ecosystem; 2) Human (People); and 3) Economics (Profit) or so-called triple bottom line. This research was conducted to identify the indicators of sustainability reporting disclosure associated with the local government economic, environmental and social, as well as determine the important factors that should be disclosed by local governments in their sustainability reports. This article is part of the first phase of the research conducted in producing guidelines for a complete and comprehensive disclosure to the City/County in Indonesia. As a preliminary study, data collection method used in this study consists of two sections, namely: 1) literature review and benchmarking; 2) survey methods. Data from first method were collected and analyzed to find appropriate factors for Indonesia local government context. While the survey methods are used to gather perceptions from academics and practitioners, and to have knowledge of the sustainability report. This research used confirmatory factor analysis to determine significant indicators simultaneously test the reliability and validity of the proposed model. The results of this study showed that the main factors of sustainability report disclosure model consist of Environmental, Economic, and Social. Environmental factors disclosure contains 21 indicators, economic factors consists of six disclosure indicators, whereas social factors containing three dimensions namely labor (8 indicators), society (12 indicators), and human rights (10 indicators).

Urgensi Implementasi Laporan Keberlanjutan Pada Sektor Pemerintah

“…Selanjutnya, artikel yang dipilih dilakukan analisis. Adapun artikel final yang selanjutnya dapat digunakan sebagai dasar data penelitian ini adalah penelitian yang dilakukan oleh Sofia et al (2016), Niemann & Hoppe (2018, Othman et al (2017), dan Hossain (2018.…”

“…Penelitian Sofia et al (2016) bertujuan untuk mengidentifikasi indikator-indikator pengungkapan pelaporan keberlanjutan yang terkait dengan ekonomi, lingkungan hidup, dan sosial pemerintah daerah, serta menentukan faktor-faktor penting yang harus diungkapkan oleh pemerintah daerah dalam laporan keberlanjutannya. Hasil penelitian ini menunjukkan faktor utama model pengungkapan laporan keberlanjutan terdiri dari lingkungan, ekonomi, dan sosial.…”

Corporate Social Responsibility Reporting Model for the Environment at Oil and Gas Companies in North Kalimantan

“…These negative effects will have an impact on the natural balance as a result of the company's environmental management not being maximized and only profit-oriented. Companies that are only concerned with profit without considering environmental and social influences will not be able to sustain their business operations for long [3]. Companies are becoming increasingly aware of the necessity of their part in sustainable development by becoming directly involved in corporate social responsibility as time passes and business processes evolve [4].…”