Sustainability Reporting in Emerging Markets: An Analysis of IFRS S1 and S2 Implementation at Telkom Indonesia

Abstract

This research undertakes a focused analysis of the implementation of IFRS S1 and S2 principles within Telkom Indonesia, a prominent state-owned enterprise and market leader in the nation's telecommunications and digital services sector. Given its strategic importance, Telkom's approach to sustainability reporting serves as a critical case study for the broader Indonesian and emerging market contexts. The methodology employed involves a comprehensive document analysis, primarily scrutinizing Telkom Indonesia's 2024 Sustainability Report, complemented by an understanding of relevant global reporting standards and local regulatory developments.
Key findings indicate Telkom's strong proactive alignment with IFRS S1 and S2 principles across governance, strategy, risk management, and metrics, demonstrating a mature approach to integrating sustainability. While showcasing significant achievements in transparency and commitment, the analysis also identifies inherent challenges, including the complexities of data collection and integration, alongside opportunities for further enhancement. The implications extend beyond Telkom, offering valuable insights for other emerging market companies navigating the new reporting landscape and informing policymakers on the critical role of regulatory support and capacity building in fostering a truly sustainable financial ecosystem.