Determinants of Sustainability Reporting in Indonesian Public Companies: Stakeholder and Legitimacy Theory Approach

This study aims to analyse the determinants of sustainability reporting in public companies in Indonesia using the Stakeholder Theory and Legitimacy Theory approaches. Sustainability reporting is an important indicator in measuring corporate social and environmental responsibility, as well as a means of building legitimacy in the eyes of the public. This study uses a quantitative approach with secondary data taken from annual reports and sustainability reports of companies listed on the Indonesia Stock Exchange (IDX) during the period 2020-2023. The independent variables analysed include institutional ownership, company size, profitability, and independent board of directors. The analysis method used is logistic regression to test the influence of these variables on sustainability reporting disclosure. The results show that company size and institutional ownership have a significant influence on the existence of sustainability reports, supporting the assumption of stakeholder theory that large companies are more exposed to external pressures. Meanwhile, the influence of legitimacy is reflected through the role of an independent board that strengthens the company's transparency and accountability to the public. These findings provide theoretical and practical contributions in strengthening sustainability reporting practices in Indonesia as well as providing input for regulators and stakeholders in formulating sustainability reporting.