Analysis of Sustainability Report Disclosure Quality from Economic, Environmental, and Social Perspectives at PT Petrokimia Gresik

Electronic Journal of Education, Social Economics and Technology Vol. 6, No. 2, (2025), pp. 1~13, Article ID: 1233 ISSN 2723-6250 (online) DOI: https://doi.org/10.33122/ejeset.v6i2.1233 Research Article Analysis of Sustainability Report Disclosure Quality from Economic, Environmental, and Social Perspectives at PT Petrokimia Gresik Siti Hadawia*, Masiyah Kholmi, and Aniek Rumijati Universitas Muhammadiyah Malang, Malang, Jawa Timur, Indonesia, 65144 *Corresponding Author: | Phone: +6281338105615 ABSTRACT Sustainability reporting is essential for corporate transparency and accountability, yet the quality of such disclosures in Indonesia remains limited. PT Petrokimia Gresik, as a major chemical producer, faces scrutiny regarding its environmental and social impacts, which are not fully reflected in its sustainability reporting. This study examines the quality of the company’s 2023 Sustainability Report based on the economic (GRI 200), environmental (GRI 300), and social (GRI 400) dimensions, referring to the GRI Standards 2021 and the triple bottom line framework. A descriptive qualitative method was employed through interviews with CSR personnel and content analysis of the report. Disclosure quality was assessed using a 0–15 index aligned with compliance criteria. The findings indicate that the report falls into the “Partially Applied” category with an overall score of 58%. The environmental dimension achieved the highest score (71%), followed by economic (60%) and social (48%). The low performance in social reporting stems from limited quantitative data, human resource constraints, and missing disclosures such as human rights assessments (GRI 412). Although the company supports the SDGs, improving reporting quality particularly completeness and data quantification is necessary to strengthen transparency and stakeholder trust. Keywords: Disclosure quality; GRI standard; Sustainability report; Triple bottom line 1. INTRODUCTION The sustainability report is critically important for companies in Indonesia because it enables them to disclose their sustainability performance and social responsibility initiatives. According to (Paun, 2018), a sustainability report is a document that contains information on a company’s performance in achieving sustainability, encompassing environmental, social, and economic aspects. Through such reporting, firms can enhance their transparency and accountability, as well as strengthen trust with their stakeholders. In addition, (Truant et al., 2017) argue that sustainability reports also assist companies in identifying and managing sustainability-related risks, thereby improving long-term performance and sustainability. By publishing sustainability reports, Indonesian companies are able to demonstrate their commitment to sustainability and social responsibility. Sustainability reports can be viewed as tools for measuring and communicating a company’s CSR performance. According to (Juniarti et al., 2023), through sustainability reporting, firms can convey the objectives, policies, and outcomes of their CSR programs to stakeholders. Corporate Social Responsibility (CSR) is a concept that encourages companies to consider the social and environmental impacts of their operations and to take responsibility for those impacts (Afifah & Syafruddin, 2021) explain that, in the economic dimension, CSR helps companies create long-term value by improving reputation, operational efficiency, and competitiveness. From an environmental perspective, (Ismail, 2021) states that CSR motivates companies to reduce their negative impacts on nature—such as pollution and resource waste by adopting environmentally friendly practices. In the social dimension, (Afriani et al., 2023) note that CSR focuses on community welfare, community empowerment, and the protection of workers’ rights. Overall, CSR aims to create a balance between financial gains, environmental sustainability, and positive social contributions supporting both corporate longevity and global well-being. The quality of sustainability disclosure needs to be examined to ensure that the information presented is accurate, comprehensive, and reliable. Assessing disclosure quality also helps companies identify their strengths and weaknesses in sustainability reporting, enabling them to improve the overall quality of their reports. Consequently, stakeholders can obtain a clearer understanding of a company’s sustainability performance. However, in Indonesia, the quality of Page 1 of 13 Hadawia et al. Electronic Journal of Education, Social Economic and Technology, Vol. 6, No. 2, (2025), pp.1~13, Article ID: 1233 sustainability reporting remains relatively low; for instance, a study by (Dara, 2022) shows that disclosure quality reached only 23%. As a result, companies fail to attract sufficient attention from stakeholders, particularly shareholders, which can negatively affect firm value. Poor disclosure quality is often caused by information that lacks depth, clarity, and informativeness. Previous studies by (Anggraeni & Djakman, 2018) indicate that CSR disclosures are predominantly quantitative, including numerical data such as currency, weight, and size. Meanwhile, research by (Fatima et al., 2015) and (Fortuna et al., 2020) shows that CSR disclosures are dominated by descriptive information, with 70% of companies providing only narrative data. (Nelson & Meiden, 2023) found that only 16% of companies combine both qualitative and quantitative information, while (Das & Mishra, 2020) report that in India, 74% of CSR information is qualitative. (Fatima et al., 2015) conclude that the quality of disclosed CSR information remains low, largely due to the absence of supportive regulations. Although most large companies in Indonesia have already issued sustainability reports, many still lack transparency and accountability in managing the negative impacts of their operations on the environment and society. One example is the environmental pollution caused by PT Rayon Utama Makmur (RUM), a rayon fiber producer since 2017. The pollution generated foul odors that led to health problems such as nausea and shortness of breath. Meanwhile, in Pekalongan Regency, residents reported pollution caused by PT Panggung Jaya Indah Textile (Pajitex) since 2006, where coal dust, factory emissions, and wastewater polluted the environment, dirtied homes, and contaminated rivers. In the fertilizer and chemical sector, PT Petrokimia Gresik plays an important role in sustainable development, as its products are essential for both the agricultural and industrial sectors. Despite its significant contribution to the national economy, the fertilizer and chemical industry can also pose serious environmental and social risks. A clear example is that within approximately 50 meters of the PT Petrokimia Gresik plant, unpleasant odors are immediately noticeable, and the air feels warmer due to the company’s production activities. These phenome (...truncated)