Do Indonesian Carbon-Sensitive Companies Use Carbon Disclosure to Maintain Good Relationships With Primary Stakeholders?

This research examines the connection between primary stakeholders and the level of carbon disclosure in Indonesia's carbon-sensitive industry. The study utilizes data from 266 carbon-sensitive companies listed on the Indonesia Stock Exchange between 2018 and 2022, analyzed through panel regression techniques. The results indicate that institutional ownership has a significant negative impact on carbon disclosure. Conversely, a higher proportion of shares held by foreign investors and the largest shareholder is associated with increased carbon disclosure. Meanwhile, creditors do not play a significant role in influencing carbon disclosure. These findings provide valuable insights for company managers in understanding how primary stakeholders affect disclosure practices, which may extend beyond just carbon-related information.