Enhancing Environmental Accounting Information Disclosure in Indonesian Enterprises: The Role of Environmental Management and Government Ownership

Abstract

The environmental accounting information disclosure (EAID) is the first approach to offer critical information on an enterprise’s safeguarding ecological activities. The data were used from Indonesian communities and linked socio-economic indicators and environmental information disclosure data at the city level. The objective of this research is to assess the impact of environmental disclosure on public environmental concerns. It is crucial to recognise that corporate initiatives aimed at reducing their environmental footprint yield significant and wide-ranging implications. Here, using three models Pol Lined and Heckman influenced, we analyse the effect of business size on Indonesia’s environmental reporting (IER) disclosures and ratings in 2009–2018. The statistics show a positive relationship between government ownership and IER, with a more prominent link between federal government ownership and IER than local government ownership. This paper argues that to promote the cause of environmental accounting and thus contribute to the goal of capitalism with Indonesian characteristics, Indonesia should improve relevant regulations and standards for information disclosure in environmental accounting, as well as strengthen internal and external supervision of enterprises, creation of a low-carbon, environmentally friendly economy and a society characterised by its emphasis on reusing and recycling materials.