Title:
Determinants of Corporate Water Disclosure in Indonesia

Authors:
Erna Hidayah, Muhammad Panunggal Jati, Indonesia

Abstract:

This study analyses the determinants of corporate water disclosure in Indonesian consumer goods companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2021 period. The consumer goods sector is selected due to its high water dependence and consumer reputation sensitivity. Using quantitative content analysis of water-related word counts in 192 annual and sustainability reports as a proxy for managerial environmental attention, the study reveals that Indonesian water disclosure is in an early stage of development, averaging 53.7 words per report with high variability (ranging from 4 to 172 words) and a lack of standardized reporting. Multiple linear regression analysis (Adjusted R-square = 20.2%) indicates that company size is positively and statistically significantly associated with the extent of water disclosure. Conversely, short-term profitability (ROA) and the formal presence of a CSR committee have no significant relationship. These findings support Stakeholder Theory and Legitimacy Theory regarding long-term corporate social motives, while suggesting that Signalling Theory may have limited applicability to voluntary resource-specific disclosures in this context. Crucially, the non-significance of the CSR committee indicates a potential decoupling symptom, reflecting structural formality without substantive oversight. Methodologically, this study demonstrates the utility of word count in measuring managerial environmental attention. Practically, the massive reporting gap and low disclosure average highlight a clear necessity for the Financial Services Authority (OJK) to establish standardized, mandatory water management reporting guidelines to ensure comparability and transparency.

DOI: https://doi.org/10.51505/IJEBMR.2026.10914