Stakeholder Pressures and the Adoption of Sustainability Report Assurance: An Analysis of Indonesia's Voluntary Practices

This study investigates the factors influencing sustainability report assurance in Indonesia, focusing on the pressures from various stakeholders—environmental, employee, consumer, and shareholder demands. Although stakeholders increasingly demand transparency and accountability, the analysis of 20 companies listed on the ESG Leader Index between 2021 and 2023 found no significant relationships between these pressures and the adoption of independent assurance for sustainability reports. Despite the recognized value of sustainability assurance in enhancing report credibility, the voluntary nature of the practice and insufficient regulatory frameworks may contribute to low adoption rates in Indonesia. The findings highlight the need for stronger regulatory frameworks and increased awareness to encourage greater adoption of sustainability assurance. However, this study found that employee pressure factors as the strongest influence in determining whether a company adopts sustainability assurance.