INSTAR 2025, An Index with Complete Indicators for Investors

BUSINESS INFO - Practicing integrity and sustainability in business has become a necessity in today’s corporate world. Companies are no longer solely focused on efficiency, growth, and profit; they are also actively working to protect the environment and deliver the greatest possible benefits to society.

Economic Analyst and Secretary General of Transparency International Indonesia, J. Danang Widoyoko, observes that such business practices have become a global trend. It began with companies implementing Corporate Social Responsibility (CSR), and has now shifted toward Environmental, Social, and Governance (ESG) principles.

“Currently, the trend is moving toward ESG because there are various pressures on both the private sector and the government to contribute more,” said Danang during his presentation as one of the speakers at the Executive Briefing INSTAR 2025, held at the Tempo Building in Jakarta on Wednesday, October 8, 2025.

In response to this development, Danang explained that Tempo Data Science, a business unit of PT Tempo Inti Media Tbk, together with Transparency International Indonesia (TII) and the Institute for Strategic Initiatives (ISI), launched an initiative called INSTAR. This index assesses the extent to which companies or organizations apply business practices that are both ethical and sustainable.

Kinanti Marta Nuraida, Head of Indices and ESG Business Development at the Indonesia Stock Exchange (IDX), acknowledged that many independent institutions have developed indices for the IDX. “In fact, in recent years, new indices have emerged,” she said. According to Kinanti, investor interest in these indices has been increasing. “These indices are undoubtedly valuable and serve as important additions to the sustainable investment ecosystem in Indonesia’s capital market.”

She expressed her appreciation for the launch of INSTAR, highlighting its relevance. “INSTAR goes beyond ESG by incorporating elements such as social impact and anti-corruption measures. These are indeed additional areas of concern for investors,” she explained.

According to Kinanti, INSTAR can be a complementary tool for investors when assessing or making sustainable investment decisions. “INSTAR is a very strong ‘whole package’ for investors. Most importantly, its methodology is transparent,” she stated.

Dendy Apriandi, Director of Investment Deregulation at the Ministry of Investment/Indonesian Investment Coordinating Board (BKPM), noted that INSTAR aligns with President Prabowo Subianto’s Asta Cita program, specifically goals number 2, 7, and 8.

Asta Cita goal number 2 focuses on ESG and aspects of the blue economy, green economy, creative economy, and renewable energy. “Goals number 7 and 8 address anti-corruption efforts and alignment with social impact objectives,” Dendy added.

Meanwhile, Wahyudi M. Tohar, Chairman of ISI, explained that to produce a comprehensive analysis, assessments are conducted in stages.

First, candidate companies listed on the IDX and state-owned enterprises (SOEs) that are not publicly listed are identified. Second, company data is collected, including Annual Reports, Sustainability Reports, Codes of Conduct, Ethics Guidelines, and Financial Statements. Third, a desk research process evaluates three main dimensions reflecting business integrity and sustainability. Fourth, desk research scoring is conducted, followed by a verification stage, and finally verification scoring.

Ai Mulyani, Head of the PDAT Division at Tempo Data Science and the person in charge of INSTAR, explained that all companies undergoing the verification process receive official recognition in the form of a Committed/Verified Badge, which is published on the INSTAR website and during the Awarding Night event. In addition, these companies gain positive exposure as organizations committed to integrity, social responsibility, environmental stewardship, and human rights.

Wahyu Dhyatmika, CEO of Info Media Digital, revealed that out of 900 companies—comprising 884 companies listed on the IDX as of February 2024 and 16 non-listed SOEs—only 479 passed the minimum threshold. “The next step involves further verification to determine whether these companies are eligible to obtain verified status in their ESG practices,” he explained.

He expressed hope that the program would serve as a credible and comprehensive audit process. “We hope the business ecosystem will recognize that companies receiving the INSTAR verified badge have truly met all the criteria for integrity, environmental responsibility, and social impact,” Wahyu said.

Wahyu added that Tempo is also working downstream. “INSTAR represents the upstream effort, and downstream, we’ll collaborate with Gen Z communities and the public to create real impact for companies that have met strong ESG standards.”

Companies interested in participating in further verification can contact +62 851 5661 9434 or email [email protected]. (*)

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