• ESG-related stock indices in Indonesia, such as the IDX ESG Leaders and SRI-KEHATI, do not always perform
better than the overall market both in terms of earnings (ROE) and price (cumulative price change and 12M trailing
price performance). However, they have lower overall ESG risk which may serve as a useful hedge against long-term
risks associated with investing in “poor ESG” companies.

• The growth in the issuance of various types of sustainable
bonds (green bond, sustainability bond, sustainability linked bond) has been noteworthy. However, there are still
opportunities for expansion since the total sustainable
bond outstanding is still relatively small compared to the
entire bond market