Indonesia Advances ESG Public‑Sector Governance Amid Budget Efficiency Drive

Indonesia’s Minister of Labour, Yassierli, addressed the Public Sector Governance Summit organised by the Indonesian Institute of Accountants in Jakarta. He argued that public‑sector financial management must move beyond mere compliance to generate tangible benefits for society, calling for the integration of Environmental, Social, and Governance (ESG) principles and the adoption of Global Reporting Initiative‑based sustainability reporting. Yassierli highlighted the ministry’s stewardship of roughly 155 million workers and outlined actions such as energy‑saving measures, plastic‑reduction, smart‑building technologies, inclusive workplaces for people with disabilities, stronger internal integrity, people‑centric organisation, improved bureaucracy and accelerated digitalisation of labour data.

In a separate briefing at the Ministry of Finance, senior official Purbaya confirmed that the government will trim the budget for the BGN programme to below Rp 268 trillion. He stressed that the cut aims to tighten fiscal discipline while keeping the programme operational, noting, “Kalau saya maunya Rp0, tapi enggak bisa kan.” Purbaya said the emphasis is on better implementation governance to avoid waste of state funds.