ESG SHOWDOWN: BUMN VS NON-BUMN ON INDONESIA’S SUSTAINABILITY STAGE

Abstract

The evaluation of Environmental, Social, and Governance (ESG) factors is a key indicator of a company’s commitment to sustainable practices. This study compares ESG scores between State-Owned Enterprises (BUMN) and Non-State-Owned Enterprises (Non-BUMN) listed on the Indonesia Stock Exchange (IDX), addressing the increasing global focus on sustainability. ESG metrics are vital for stakeholders—including investors, regulators, policymakers, and the public—to assess corporate accountability, ethical practices, and long-term resilience. In Indonesia, BUMN and Non-BUMN differ in ownership models, regulatory frameworks, governance structures, and strategic priorities, which may influence their ESG performance. This study utilizes secondary data from 2020-2024 sourced from sustainability reports, the IDX ESG index, and ESG rating platforms like Refinitiv and MSCI. A descriptive quantitative method with an independent t-test is applied to determine whether there are significant differences in average ESG scores between the two groups. Through this analysis, the research seeks to enhance understanding of how corporate ownership influences sustainable practices in Indonesia. It also aims to promote greater transparency, strengthen stakeholder trust, and support the integration of ESG principles into national business strategies, ultimately supporting responsible governance and sustainable economic growth.