Integrated Reporting in Indonesia: Issues, Current Trend, and Future Prospects

Abstract

Integrated reporting (IR) presents information on performance, governance, strategy, and prospects in a single report. A single report allows for a more transparent and comprehensive disclosure of company information. In Indonesia, the public has begun to pay attention to integrated reporting, with several companies using it. As a result, this study aims to examine the issues, current trends, and prospects of IR implementation in Indonesia. This study employs the method of a literature review. According to the findings of a literature review, there are still relatively few companies in Indonesia that use IR in their reports. Nonetheless, the opportunity to implement IR in Indonesia remains open. This is demonstrated by an increase in the number of companies implementing IR from 2014 to 2021. In 2021, the number of organizations implementing IR in their reports in Indonesia has reached 40. As a result, it is predicted that corporate reporting will shift from separate reporting to integrated reporting. Regulations regulating integrated reporting in company reports are required to support the implementation of integrated reporting, given that integrated reporting in Indonesia is still voluntary. The rules governing the performance of IR are expected to increase the number of companies in Indonesia willing to incorporate IR into their reports.