Abstract:
Background–Sustainable Development Goals (SDGs) represents 17 goals with 169 achievements
initiated with the aim to benefit humans and the earth. It takes the role of all parties to be able to
realize the SDGs, especially the private sector must be willing to take an active role in achieving
SDGs. However there are still many companies which still seeing SDGs as a trend that is only used
solely for the company to look good but not really synergize the company's goals with the goals of
SDGs.
Purpose and Methodology–The purpose of this study is to investigate how the impact of the
adoption of SDGs-related Indonesia’s financial accounting standards (PSAK) on net profits of
mining companies listed in Indonesian Stocks Exchange (IDX). The study employs a quantitative
research approach and multiple linear regression analysis with the semi-log type Ordinary Least
Squares (OLS) estimation method. The unit of analysis in this study are 48 companies from IDX’s
mining sector in the period 2008 to 2017 with a 10-year observation period.
Findings–Although the adoption SDGs-based accounting standards on companies listed in
Indonesian Stocks Exchange (IDX) has impacted on their respective net profit, it, however, brings
companies more sustainably both in terms of financial and operational aspects. Internally, the
impact of adoption boosts employees’ work protection, while externally it enhances investors’
confidence that entities are managed in a sustainable way.
Research Limitations–limited information is available companies SDGs disclosure on companies’
notes on financial statements.
Originality/value – The study presents the impacts of the adoption of SDGs-related financial
accounting standards and its relevant costs on the companies’ financial statements that is rarely
researched in Indonesian context.
