HAVE COMPANIES IN INDONESIA DISCLOSE ENVIRONMENTAL ACCOUNTING?

Abstract

Environmental accounting is an effort to minimize the negative impact on the environment of the company's operational activities, both monetary and non-monetary. This effort is carried out by identifying the environmental impacts of the company's operations and the costs of handling these impacts. There have been several regulations referring environmental accounting disclosures, but the application of these disclosures is still voluntary. The investigation focuses on the importance of environmental accounting disclosures, i.e. to find out whether companies in Indonesia have disclosed environmental problems from their operations. The data is supported by the annual reports of companies listed on the Indonesia Stock Exchange (IDX) in 2021 in all industries. Methods of data analysis using scoring techniques or assessments using the Frictional scoring method and descriptive analysis. We found that the average disclosure in each aspect of the assessment model Fekrat shows zero and one. The other side shows that most of the companies sampled in this study have not made environmental disclosures. The contribution of this finding can serve as a basis for policymakers in Indonesia to assess the effectiveness of related regulations in environmental protection efforts. Apart from that, other facts also show the need for the legitimacy of the IDX as a capital market operator to require companies to disclose environmental accounting in their annual reports. The professional practical and research implications for the future relative also to the concept of dealing with, changing, and significantly implementing consortia in sustainable environmental accounting mechanism.