BANKING SUSTAINABILITY IN INDONESIA

Abstract

Background: As part of the nations economic drive, the public bank company is committed to supporting environmentally sound economic development. The intermediation function in the banking industry is in a unique position in sustainable development.   Methods: The study uses explanatory methods. The samples are sustainability and financial report of pubic banking sector companies listed on the Indonesia Stock Exchange (IDX) during 2018-2022. This study proves that sustainability reports disclosure a positive response in implementing sustainable banking issues under the guidance of Bank Indonesia as the central bank.   Result: The result studies are expected to reveal banking and policy making regarding the concept of sustainable banking on sustainable development in Indonesia. This study shows that stakeholder, legitimacy, and signaling theories can produce strategic design for sustainable development objectives for public banking companies.   Conclusion: Therefore, investor can look at the company’s sustainability report disclosures to predict the company’s value.   Originality/Value: The novelty of this research is the current policies and implementation status of sustainability in the banking industry of Indonesia with special reference to Financial Inclusion (FI), Corporate Social Responsibility (CSR), and Green Banking (GB).