Pengaruh Pemilikan Asing ke atas Pendedahan Maklumat Alam Sekitar dalam Industri Sawit di Indonesia

Abstract

The main objective of this study is to examine the influence of foreign ownership on the environmental information disclosure in oil palm industry in Indonesia. Foreign investors are divided into three categories: (i) investors from neighbouring countries involving Singapore, Malaysia, Thailand and Brunei; (ii) investors from European Union; and (iii) investors from other countries. The samples of this study consist of oil palm companies listed in the Indonesian Stock Exchange from the years 2013 until 2017. The total sample includes the observation of 100 oil palm companies for 5 years. Environmental information disclosure was taken through the content analysis method from the companies’ annual reports. This study tested the hypothesis using panel data analysis. One of the contributions of this study is in proving the companies’ management carried out different reporting strategies when dealing with investors of different categories. The management used legitimacy strategy when dealing with investors from the European Union as they are the countries that give most pressure to the oil palm industry. However, they withhold reporting of certain information when dealing with investors from other countries. The finding of this study is significant in the efforts to improve the sustainability of oil palm industry. This is proven by the finding of this study that the categories of investor have influence on the transparency of reporting and help monitor companies’ activity that may harm the environment. This finding is also important in developing policy(ies) regarding foreign investment not only for oil palm to get access to source of capital but also to tackle the issue of pollution.