What Drives Sustainability Disclosure in State-owned Enterprises? Insights From Financial and Governance Perspectives in Indonesia

This study explores the financial and governance factors influencing sustainability reporting (SR) among Indonesian State-Owned Enterprises (SOEs). Using panel data from SOEs listed on the Indonesia Stock Exchange (2020–2023), it examines the effects of leverage (DER), earnings management (EM), institutional ownership (INST), profitability (ROA), and firm size (SIZE) on SR. SR was measured through content analysis based on the GRI Standards. The results show that DER and EM significantly influence SR, suggesting that disclosure is often driven by external pressure and managerial motives rather than genuine sustainability commitment. Industry type-based analysis further reveals that high-profile firms are more responsive to external scrutiny, while internal factors such as managerial strategy and ownership structure play a greater role in low-profile firms. These findings highlight the symbolic nature of SR in SOEs and underscore the need for stronger regulatory oversight to enhance reporting quality and accountability in the public sector.