Evaluation of BPR Compliance and Perception of Sustainable Finance Policy Implementation in Bali Province

The implementation of sustainable financial policies in the financial services sector in Indonesia has been regulated through POJK No. 51/POJK. As of 03/2017, the level of compliance among small-scale financial services institutions, such as Bank Perekonomian Rakyat (BPR), still shows inequality. This study aims to evaluate the level of compliance of BPRs in Bali Province with sustainability reporting and analyze the influence of internal institutional factors on the implementation of these policies. This study employs a combination of descriptive and quantitative qualitative approaches, utilizing the Structural Equation Modeling–Partial Least Squares (SEM-PLS) method in 29 purposively selected BPRs. The results showed that the aspects of attendance and reporting coverage have been relatively high, but the aspect of publication remains low. Four independent variables—regulatory understanding, human resource capacity, financial readiness, and company size—had a significant effect on compliance, with an R² value of 0.856. These findings emphasize the importance of strengthening internal governance to drive the successful implementation of sustainable finance at the scale of microfinance institutions.