PSPK 1 and PSPK 2 (Pernyataan Standar Pengungkapan Keberlanjutan) are the two standards moving Indonesia from voluntary, narrative-style sustainability reporting toward a standards-based regime that regulators and investors can actually compare across companies. The Sustainability Standards Board of the Indonesian Institute of Accountants (Dewan Standar Keberlanjutan Ikatan Akuntan Indonesia, or DSK IAI) , and they become effective for annual reporting periods beginning on or after 1 January 2027. Together, the two make up Indonesia’s Sustainability Disclosure Standards, known in Indonesian as Standar Pengungkapan Keberlanjutan and abbreviated SPK. Because they apply to reporting periods that begin on 1 January 2027, getting ready for them is often called SPK 2027 readiness.
What sets PSPK 1 and PSPK 2 apart from earlier guidance is their source. Both converge with IFRS S1 and IFRS S2, the sustainability standards issued by the International Sustainability Standards Board (ISSB). Indonesia appears in the IFRS Foundation’s jurisdictional snapshots for the ISSB (sustainability) Standards. It means that the category for jurisdictions still finalising their approach. So, this is no longer only a domestic compliance exercise.
This convergence means the technical substance of these standards follows IFRS S1 and IFRS S2 rather than borrowing selected parts of them. The same four content pillars, the same core disclosure requirements, and the same treatment of climate risk carry over. What Indonesia adds sits around that core: the standards are issued in Bahasa Indonesia by a national board, and they come with local transition relief calibrated to Indonesian data realities, including a longer runway for Scope 3 emissions that is set out further below.
Why issue PSPK at all, rather than pointing companies straight at IFRS S1 and S2? The IFRS standards do not carry legal force on their own. A country has to adopt them into its own standard-setting and regulatory system before a regulator can require them. Issuing PSPK 1 and PSPK 2 through DSK IAI is what lets OJK mandate the same content later through a revised POJK, in the national language, on a timeline and with reliefs suited to Indonesian companies.
There is a timing trap worth naming early. Companies that wait for full regulatory certainty before starting preparation will have far less runway once the Financial Services Authority (Otoritas Jasa Keuangan, or OJK) finalizes which entities must comply and when. Understanding the standards themselves now matters more than waiting for every detail to settle.
As at 11 August 2026, the effective date is fixed at 1 January 2027, but OJK has not yet issued the revised POJK 51/2017 that will name which entities must comply and when. What follows is what the two standards require, who is expected to comply first, and what is still open.
| Quick answer
PSPK 1 and PSPK 2 (Pernyataan Standar Pengungkapan Keberlanjutan) are Indonesia’s Sustainability Disclosure Standards (Standar Pengungkapan Keberlanjutan, or SPK). PSPK 1 covers general sustainability disclosures; PSPK 2 covers climate. DSK IAI approved them on 1 July 2025; they take effect for annual reporting periods from 1 January 2027 and converge with IFRS S1 and IFRS S2. OJK will mandate them through a revised POJK 51/2017. Preparing for that 2027 start is called SPK 2027 readiness. |
Key facts at a glance
| Issuer | DSK IAI (Dewan Standar Keberlanjutan Ikatan Akuntan Indonesia) |
| Approved | 1 July 2025 |
| Publicly accessible | 15 July 2025, via SAK Online |
| Effective | Annual reporting periods from 1 January 2027 |
| Basis | Converge with IFRS S1 and IFRS S2 (ISSB) |
| Regulator to mandate | OJK, through a revised POJK 51/2017 |
| Status (11 Aug 2026) | Effective date fixed; revised POJK not yet issued |
PSPK 1 and PSPK 2 at a Glance
The two standards work as a pair. PSPK 1 sets the general requirements for sustainability-related financial disclosures, and PSPK 2 handles climate specifically. The table below shows how they divide the work.
| Standard | What it covers | Based on |
| PSPK 1 | General sustainability-related risks and opportunities, conceptual foundations, and the location and timing of reporting | IFRS S1 |
| PSPK 2 | Climate-related risks and opportunities | IFRS S2 |
How PSPK 1 and PSPK 2 Differ from IFRS S1 and IFRS S2
PSPK 1 and PSPK 2 converge with IFRS S1 and IFRS S2 on technical substance, which is the same four content pillars, the same core disclosures, and the same outside-in treatment of sustainability and climate risk. What DSK IAI added is a set of Indonesia-specific choices a knowledgeable reader should not overlook.
- Language and issuer. The standards are issued in Bahasa Indonesia by a national board (DSK IAI), not by the ISSB, which is what allows OJK to mandate them domestically.
- A longer Scope 3 runway. PSPK 2 grants a three-year exemption from disclosing Scope 3 greenhouse gas emissions, against the single annual reporting period of relief in IFRS S2.
- Flexibility on measurement method. During that same three-year window, entities may use measurement methods other than the GHG Protocol (2004), for many Indonesian companies, the more practical relief.
- A climate-first first year. In the first reporting year, an entity may report only PSPK 2 climate content and defer the broader PSPK 1 disclosures, a transition provision drawn from PSPK 1 and IFRS S1.
- No first-year comparatives. Prior-period comparative information is not required in the first year of application.
- A built-in review window. IAI has signalled a post-implementation review across 2027-2029 to decide whether Scope 3 disclosure and GHG Protocol use become mandatory afterwards, so these reliefs are a review window rather than a permanent carve-out.
In short, the reliefs above sit on top of a standard that is otherwise convergent with the ISSB baseline. A company that prepares to the IFRS S1 and S2 substance will meet PSPK, using the Indonesian transition provisions to phase in the hardest data.
Who Is Expected to Comply With PSPK 1 and PSPK 2 First
PSPK 1 and PSPK 2 do not name the entities that must apply them or the date each must start. That determination sits with OJK, which is currently revising POJK 51/2017 to define the compliance criteria and the phased timeline.
The clearest signal so far is OJK’s draft revision of POJK 51/2017, which OJK opened for public consultation, with written responses due by 13 March 2026. The draft describes a phased rollout that begins with the entities carrying the most public accountability and widens in later years, with the first wave tied to financial year 2027. Large listed issuers, large banks, and major state-owned enterprises are the entities expected to lead, based on our reading of the consultation draft and our observation of the carbon and sustainability sector in Indonesia.
In banking that points to the upper tiers of OJK’s KBMI classification, which groups banks by core capital: KBMI 3 covers banks with core capital above IDR 14 trillion up to IDR 70 trillion, and KBMI 4 those above IDR 70 trillion; these tiers are defined by POJK 12/POJK.03/2021 on commercial banks. Among listed firms, the LQ45 index, the 45 most liquid large-capitalization stocks on the Indonesia Stock Exchange, is the usual shorthand for the country’s largest issuers. Early voluntary adoption is permitted for companies that want to move ahead of the mandatory timeline.
What the Two Standards Actually Require
Both standards are built on the same four content pillars from the ISSB framework, namely governance, strategy, risk management, and metrics and targets. PSPK 1 applies these four pillars to sustainability-related risks and opportunities broadly. PSPK 2 applies the same four pillars specifically to climate.
What each pillar requires
Under both standards, the four pillars ask for specific disclosures:
- The bodies and processes used to monitor and oversee sustainability and climate-related risks and opportunities, including board oversight and management’s role.
- The material risks and opportunities, their effects on the business model, strategy, and cash flows, and the entity’s resilience under different climate scenarios.
- Risk management. How the entity identifies, assesses, prioritises, and monitors these risks, and how that process is integrated into overall risk management.
- Metrics and targets. The metrics used to measure and manage each material risk, including Scope 1, 2, and (subject to the transition relief) Scope 3 emissions, plus any targets set and progress against them.
These disclosures connect to Indonesia’s wider sustainable-finance architecture, including the Indonesian Sustainable Finance Taxonomy (Taksonomi Keuangan Berkelanjutan Indonesia, or TKBI) and the existing Laporan Keberlanjutan template under POJK 51/2017, which the revised POJK is expected to align with PSPK content.
A worked example: one climate disclosure
Take a listed manufacturer disclosing under PSPK 2. Under governance, it names the board committee that reviews climate risk each quarter. Under strategy, it explains that carbon pricing and physical flood risk to two coastal plants are material, and models resilience under a below-2°C and a 3°C scenario. Under risk management, it shows how climate risk feeds its enterprise risk register. Under metrics and targets, it reports Scope 1 and 2 emissions for the year, uses the Scope 3 relief while it builds supplier data, and sets a 2030 intensity target. That single, connected set of disclosures, not a standalone PDF, is what PSPK asks for.
The standards also carry transition relief that softens the first years of adoption, which matters for planning. In the first reporting year, entities are permitted to disclose only PSPK 2 climate content and defer the broader PSPK 1 disclosures. Scope 3 emissions disclosure carries a three-year exemption, longer than the one-year relief under IFRS S2, in recognition of how difficult supply chain data collection is across Indonesia’s complex value chains.
During the same three-year window, entities may also use measurement methods other than the GHG Protocol (2004), which for many Indonesian companies is the more consequential relief. IAI has signalled a post-implementation review across 2027-2029 to decide whether Scope 3 disclosure and GHG Protocol use become mandatory afterwards, so this is a review period rather than a permanent decision. Entities are also not required to present comparative information in their first year of application for PSPK 1.
| Transition relief | What it means | Period | Granting standard |
| Climate-first reporting | Report only PSPK 2 climate content and defer the broader PSPK 1 disclosures | First reporting year | PSPK 1 (IFRS S1 transition) |
| Scope 3 emissions | Exemption from disclosing Scope 3 emissions; other measurement methods than the GHG Protocol also permitted | Three years | PSPK 2 (IFRS S2 transition) |
| Comparative information | Prior-period comparatives are not required | First reporting year | PSPK 1 (IFRS S1 transition) |
The Scope 3 data problem in Indonesian supply chains
The three-year Scope 3 relief exists for a reason. Most Indonesian value chains run through thousands of small and medium suppliers that do not yet measure their own emissions, so a company’s largest emissions category is often the one it can least document. Closing that gap means supplier engagement, primary-data collection where it matters, and defensible estimation everywhere else—work that takes years, not quarters, which is why starting before the mandate is a practical necessity rather than an early-adopter luxury.
How PSPK Relates to POJK 51/2017
POJK 51/2017 remains the regulation that requires sustainability reporting in the first place. PSPK 1 and PSPK 2 do not replace it outright. Instead, OJK is revising POJK 51/2017 so its requirements align with PSPK content.
The deeper change is in perspective. POJK 51/2017 took an inside-out view, focused on how a company’s operations affect the environment and society. PSPK takes an outside-in view, focused on how sustainability risks from the outside world affect a company’s financial resilience and value. Under the older approach, companies could reference various international frameworks such as GRI and SASB. PSPK replaces that flexibility with a single, ISSB-aligned standard that requires connectivity between sustainability disclosures and the financial statements.
| POJK 51/2017 | PSPK 1 and PSPK 2 |
| Inside-out view (how operations affect environment and society) | Outside-in view (how external risks affect financial value) |
| Flexible reference to GRI, SASB, and other frameworks | Single ISSB-aligned standard |
| Standalone sustainability report | Connectivity between sustainability and financial statements |
What’s Still Being Finalized
The most important notice is that OJK’s revision of POJK 51/2017 has not been issued in final form. That revision will determine exactly which entities must comply and on what timeline, so until it is final, companies know the effective date of PSPK 1 and PSPK 2 (annual periods from 1 January 2027) but not their own specific mandatory compliance date.
OJK has publicly stated it targets issuing the revised POJK during 2026 (reported 22 July 2026 by Kompas Lestari, quoting OJK).
Independent third-party assurance is not yet mandated in Indonesia; today it is voluntary, and only a small share of listed companies obtain it. No regulation governing assurance standards or a phased timeline has yet been issued by OJK or the Ministry of Finance, so it remains voluntary rather than required for now. Assurance readiness, if OJK later requires it, will rest on documented data lineage, control evidence, and a defensible inventory boundary, the same foundations a robust GHG inventory already builds. You can follow official updates through OJK’s sustainable finance channel and the IAI announcement.
What Companies Should Do Now to Prepare for PSPK 1 and PSPK 2
- Start with the greenhouse gas inventory. Most disclosure gaps trace back to Scope 1, 2, and 3 data quality problems, and PSPK 2 makes climate disclosure mandatory from the very first reporting year. An audit-proof inventory takes time that companies rarely have once a deadline is fixed.
- Map the governance structure, so board-level oversight of climate risk can be disclosed rather than merely claimed. Clear oversight also reduces directors’ personal liability exposure under Indonesia’s Company Law.
- Test the data systems. PSPK asks for connected, decision-useful output that links sustainability disclosures to the financial statements, not a standalone PDF produced once a year. Many current reporting systems cannot do that yet.
- Weigh early voluntary adoption. For companies competing for foreign capital or green financing, adopting ahead of the mandatory timeline signals to investors that the disclosures are already investor-grade. For more background, read our guide to sustainability disclosure and reporting standards and the key differences between climate disclosure and reporting standards.
A 12-month readiness timeline to FY2027
For a company starting from a standing position, a realistic path to FY2027 readiness looks like this:
| Phase | Focus |
| Months 1-3 | Scope the GHG inventory boundary, assign ownership, and baseline Scope 1 and 2 data. |
| Months 4-6 | Stand up governance: define and document board and management oversight of climate risk. |
| Months 7-9 | Build the data systems that link sustainability metrics to the financial statements; begin supplier engagement for Scope 3. |
| Months 10-12 | Run a dry-run disclosure against the four pillars, identify gaps, and decide on voluntary early adoption. |
OJK is still finalizing exactly who must comply and when. The inventory and governance work that PSPK 1 and PSPK 2 will require, though, is not going to change. That makes early preparation a strategic move: building your readiness for FY2027 now, rather than waiting for full regulatory certainty, protects your preparation window rather than shortens it.
For sustainability and ESG managers building a GHG inventory and climate governance structure ahead of the 2027 effective date, TruCarbon’s climate advisory services support inventory readiness, target-setting, and board-level risk disclosure, while TruCount, our carbon accounting software, handles measurement end to end, from Scope 1, 2, and 3 data collection through to the connected, decision-useful reporting that PSPK asks for.
Frequently Asked Questions About PSPK 1 and 2
- What are PSPK 1 and PSPK 2?
They are Indonesia’s Sustainability Disclosure Standards, issued by DSK IAI on 1 July 2025. PSPK 1 covers general sustainability-related disclosures and PSPK 2 covers climate. Both converge with IFRS S1 and IFRS S2, with Indonesia-specific transition relief.
- When do PSPK 1 and PSPK 2 take effect?
They are effective for annual reporting periods beginning on or after 1 January 2027. Early voluntary adoption is permitted for companies that want to start sooner.
- Who must comply with PSPK 1 and PSPK 2?
The standards themselves do not specify. OJK is revising POJK 51/2017 to set the criteria and phased timeline; written responses on its draft revision were due by 13 March 2026. In TruCarbon’s assessment, large listed issuers, large banks, and major state-owned enterprises are the likeliest first wave — banks in the higher KBMI tiers (KBMI 3 and KBMI 4) and issuers in the LQ45 index.
- What is the difference between PSPK 1 and PSPK 2?
PSPK 1 applies the four ISSB pillars to sustainability broadly, while PSPK 2 applies them specifically to climate. In the first reporting year, entities may report only PSPK 2 climate content and defer PSPK 1.
- Do PSPK 1 and PSPK 2 replace POJK 51/2017?
No. POJK 51/2017 remains the umbrella regulation requiring sustainability reporting. OJK is revising it so its requirements align with PSPK content.
- What is SPK 2027?
SPK 2027 is shorthand for readiness to report under Indonesia’s Sustainability Disclosure Standards (Standar Pengungkapan Keberlanjutan, or SPK), which take effect for annual reporting periods beginning on or after 1 January 2027. It describes the preparation companies do now to meet PSPK 1 and PSPK 2 from that date.
- Do PSPK 1 and PSPK 2 apply to private (non-listed) companies?
The standards do not set their own scope; OJK’s revised POJK 51/2017 will. The first wave is expected to fall on large listed issuers, large banks, and major state-owned enterprises. Private, non-listed companies are not the initial target, though many will face supply-chain data requests or adopt voluntarily.
- Is external assurance required under PSPK?
Not yet. OJK and the Ministry of Finance have not issued the regulation governing assurance standards or its phased timeline, so independent third-party assurance is an anticipated direction rather than a current requirement. Companies can prepare by building documented data lineage and control evidence now.
- How do PSPK 1 and PSPK 2 differ from IFRS S1 and IFRS S2?
They converge with IFRS S1 and S2 on substance but add Indonesia-specific transition relief: a three-year Scope 3 exemption (versus one year), flexibility to use measurement methods other than the GHG Protocol in that window, a climate-first first year, and no first-year comparatives. They are issued in Bahasa Indonesia by DSK IAI.
