Supervision and Enforcement of CSR in Indonesia: A Comparative Study of ASEAN Regulations and Harmonization with Global Standards

Abstract

Indonesia continues to face critical challenges in overseeing and enforcing Corporate Social Responsibility (CSR) initiatives, particularly in the context of aligning national frameworks with ASEAN regulations and global norms. This study conducts a normative-comparative analysis, assessing Indonesia’s CSR legal framework in relation to that of selected ASEAN countries, namely Malaysia, Thailand, and Singapore, while also evaluating the complexities involved in adopting international standards such as the UN Guiding Principles on Business and Human Rights, ISO 26000, and Environmental, Social, and Governance (ESG) frameworks. The analysis reveals that, despite Indonesia’s mandatory CSR provisions, regulatory enforcement and supervisory mechanisms remain underdeveloped, with limited legal sanctions. By contrast, other ASEAN nations tend to adopt more voluntary, market-oriented CSR approaches. The paper proposes strategic policy recommendations focused on regulatory harmonization, improving enforcement capabilities, and promoting meaningful CSR implementation. The findings aim to contribute to the discourse among policymakers, corporate stakeholders, and scholars in advancing a more responsible and sustainable business environment.