STRATEGI OPTIMALISASI IMPLEMENTASI ESG DALAM MENDORONG INVESTASI BERKELANJUTAN DI PASAR MODAL INDONESIA

Abstract

This study analyzes the optimization of Environmental, Social, and Governance (ESG) implementation in enhancing sustainable investment in the Indonesian capital market. The growing global emphasis on sustainability has encouraged investors to integrate ESG factors into investment decisions. However, ESG implementation in Indonesia remains suboptimal due to several structural challenges, including limited investor literacy, lack of standardized ESG reporting, and low corporate transparency. The findings reveal that although ESG adoption in Indonesia has increased, its influence on investment decisions is still limited and has not been fully integrated into market mechanisms. ESG demonstrates significant potential in improving firm value, strengthening investor confidence, and enhancing market efficiency, yet its effectiveness depends on the quality of implementation. To address these challenges, this study proposes several optimization strategies, including strengthening ESG regulations, standardizing ESG reporting frameworks, and enhancing investor education. These strategies are expected to improve ESG integration, increase sustainable investment interest, and support the achievement of long-term economic sustainability in Indonesia