Examining Sustainable Tax Strategies in ESG-Indexed Companies: A Critical Review of Indonesia as the Leading Emerging Market in ASEAN
Naila Hanum, Raden Roro Diana Atika Ghozali, Rissa Anandita

Diponegoro University

Abstract

This study provides a critical review of the literature on sustainable taxation of ESG (Environmental, Social, and Governance) indexed companies, with a focus on Indonesia as a leading emerging market in ASEAN. Sustainable taxation refers to tax policies that support ESG goals. While ESG companies are often seen as more committed to sustainability, their tax practices and contributions to these goals remain under-explored.

This review examines how ESG indexed companies in Indonesia approach sustainable taxation, highlighting patterns, challenges, and opportunities. A bibliometric analysis is employed to explore key themes, influential studies, and research trends in sustainable taxation within the ESG context. The results reveal that while many ESG companies in Indonesia are committed to sustainability, challenges such as regulatory uncertainty and a lack of fiscal incentives hinder the adoption of sustainable tax practices. Additionally, best practices vary across industries and company sizes. The study recommends improving tax strategies and developing a regulatory framework to enhance accountability in tax reporting.

Keywords: Sustainable Tax, ESG Indexed Companies, Indonesia, Literature Review, Bibliometric Analysis

Topic: Taxation