Indonesian firms introduce AI platform for faster ESG reporting

MVGX and BDO in Indonesia have introduced an artificial intelligence-powered platform designed to facilitate compliance with sustainability reporting requirements for Indonesian companies.

The platform aims to streamline the process of sustainability reporting through automation of data collection and analysis, seeking to reduce both the time and cost associated with traditional manual reporting methods. Companies utilising the platform are expected to complete sustainability reporting in approximately half the usual time, while also improving accuracy.

This collaboration forms part of an ongoing partnership between MVGX, a Singapore-based provider of sustainability compliance solutions, and BDO in Indonesia, a large accounting and advisory firm. The partnership began in September 2023 with a focus on delivering decarbonisation solutions via MVGX's Carbon Connect platform, and has now expanded to address environmental, social, and governance (ESG) reporting requirements.

The platform is designed to meet increasing regulatory demands within Indonesia, where the Financial Services Authority requires sustainability reporting for listed companies under Regulation No. 51/2017. Between 2019 and 2021, the country achieved full compliance in mandatory annual submissions. The new platform aims to ensure that companies can meet both Indonesian obligations as well as international frameworks, including the Global Reporting Initiative (GRI) and International Sustainability Standards Board (ISSB) criteria.

Leveraging a proprietary AI inference model and a comprehensive emissions factor database tailored for the region, the technology guides users through a structured reporting process. It includes an online template and questionnaire to ensure data consistency and facilitate the reporting process for public companies.

MVGX Chief Executive Officer, Lily Hong, commented: "Our collaboration with BDO in Indonesia marks a significant milestone in our mission to revolutionise sustainability reporting through cutting-edge technology. As businesses face growing regulatory demands and heightened stakeholder expectations, digital solutions must evolve to provide greater transparency, efficiency, and accuracy. By integrating AI inference models with regulatory expertise, we empower Indonesian companies not only to meet compliance requirements but also to strengthen their ESG leadership, setting new benchmarks for corporate sustainability in the region."

Ms Hong added: "This partnership reflects our shared vision of a future where technology drives meaningful, measurable environmental progress."

Thano Tanubrata, Chief Executive Officer at BDO in Indonesia, also stated: "The AI-powered sustainability reporting platform represents a major step forward in our ongoing collaboration with MVGX and our commitment to equipping Indonesian businesses with innovative, future-ready sustainability solutions. ESG compliance is no longer just about meeting regulations; it is about shaping long-term corporate resilience, investor confidence, and market competitiveness. By combining our expertise in governance, risk management, and compliance with MVGX's technological leadership, we are delivering a powerful solution that simplifies ESG reporting while ensuring companies remain accountable, agile, and ahead of the curve."

With Indonesia signalling a move towards stricter ESG requirements, the platform is positioned to assist companies in managing compliance with ease and speed. It is accessible and scalable, with the aim of broadening the adoption of sustainability reporting among Indonesia's listed companies.

The launch occurs against a broader backdrop of rising global ESG investment, a trend underlined by figures from the Global Sustainable Investment Alliance that show sustainable assets under management exceeded USD $30.3 trillion in 2022, an increase of 20 percent over two years.

The partnership between MVGX and BDO in Indonesia emphasises a shared commitment to supporting the business community's ability to adapt to evolving expectations around sustainability, transparency, and disclosures.