Science Target Conference Systems, Ajman 4th International Environment Conference 2016

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Investigative studies on environmental disclosure and the costs of R&D as a compliance with government policy on corporate social responsibility in Indonesia
Lindrianasari Amsir Saidi, Yuztitya Asmaranti

Last modified: 2016-01-04


The research objective is to provide empirical evidence on responsibility companies in achieving sustainable development not only for Indonesia, but also for the world. This study has investigated the allocation of research and development costs as other government regulations issued after the regulations issued related to the environment, ie in 2004, 2007 and 2012. Samples observations as many as 246 companies in 11 years.

This study examined separately three times (2004, 2007, and 2012) the enforcement of laws related to the environment. The test results show that the disclosure of environmental information on food and beverage company in Indonesia has increased significantly and the better after the legislation was issued. This finding suggests that since the Indonesian government ratified the Kyoto Protocol in 2004, Indonesian companies more transparent in informing environmental conservation activities that they do.

The study also found that there is a positive relation to the allocation of research and development costs associated with the reduction of carbon emissions the company during the year of observation. Significant relationships were also found in 2007, when the government issued Law No. 40 of 2007. However, in 2012 we did not find a significant relationship. This study concluded that the legal instruments that require companies to reduce carbon emissions is urgently needed in developing countries like Indonesia. This policy also will determine the success of Indonesia in realizing the commitments to reduce carbon emissions.