A Qualitative Study of Implementation ESG as Strategy or Symbolic Compliance in Selected Indonesia's State-Owned Banking

Authors

  • Rahayu Trisnawati Faculty Economy and Business, Sebelas Maret University, Surakarta, Indonesia
  • Ayya Agmulia Asmarani Faculty Economy and Business, Sebelas Maret University, Surakarta, Indonesia
  • Alifah Faidurrohmah Faculty Economy and Business, Sebelas Maret University, Surakarta, Indonesia

Abstract

Abstract - As ESG (Environmental, Social, and Governance) becomes increasingly integrated into global sustainability frameworks, questions remain about the depth of its implementation in emerging markets. This study explores whether ESG practices in Indonesia’s state,owned banks, BRI, Bank Mandiri, and BSI, reflect substantive strategic transformation or are limited to symbolic compliance. Using qualitative content analysis of 2023 and 2024 sustainability and annual reports, complemented by media,based external validation, the study finds that all three banks are in a transitional phase. While each bank demonstrates formal ESG structures and alignment with regulatory standards (POJK 51/2017), operational inconsistencies, such as cybersecurity breaches, fraud cases, and controversial financing, highlight the gap between ESG strategy and execution. Rather than greenwashing, these findings suggest that ESG in Indonesian banking is evolving from a compliance obligation toward a strategic imperative, albeit with structural and institutional challenges.

Keywords: ESG, sustainability reporting, symbolic compliance, banking, Indonesia, POJK 51/2017

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Submitted

2025-09-20

Published

2025-09-20

Conference Proceedings Volume

Proceedings of The 9th International Conference on Management in Emerging Markets (ICMEM) SBM ITB

Section

Articles