Picture source: Yayasan Kehati, 2025

The SRI-KEHATI Index, a stock index on the Indonesia Stock Exchange (IDX), is a testament to the leadership of companies demonstrating a strong commitment to sustainable and responsible investment (SRI) principles. Developed in collaboration with the KEHATI Foundation (Indonesian Biodiversity Foundation), this index evaluates companies based on environmental, social, and governance (ESG) criteria, in addition to financial performance. The goal is to promote awareness of sustainability issues and encourage long-term investment in companies that contribute positively to society and the environment. The companies listed in the SRI-KEHATI Index are pioneers in ESG practices, making the index a trusted reference for investors seeking ethical investment alternatives in Indonesia’s capital market.

The SRI-KEHATI Index is directly related to ESG (Environmental, Social, and Governance) principles, as it is designed to reflect the performance of companies that meet high ESG standards. The index selects and includes companies that demonstrate responsible behavior toward the environment (such as managing emissions and waste), uphold social values (like fair labor practices and community engagement), and implement strong governance practices (such as transparency, accountability, and anti-corruption policies). Some of the companies listed on the SRI-KEHATI Index, known for its innovative environmental initiatives, a leader in fair labor practices, and has a strong track record of governance excellence. In essence, the SRI-KEHATI Index serves as a practical implementation of ESG investing in Indonesia, guiding investors who prioritize sustainability and ethical considerations alongside financial returns.

As of June 17, 2025, the SRI-KEHATI Index stood at 368.93, showcasing a stable performance compared to the broader Indonesian Composite Index (IDX Composite), which was at 7,166.75 and rose by 0.69% on the same day. While the two indices differ in scale, the SRI-KEHATI Index consistently exhibits lower volatility, reflecting the unwavering stability of its ESG-compliant constituents. In comparison with similar ESG-focused indices in Southeast Asia, such as the FTSE4Good ASEAN 5 Index, the trend aligns—this regional ESG index has delivered a more substantial annualized return of 5.07% since May 2022, outperforming the broader FTSE ASEAN All-Share Index, which returned only 1.56%. This indicates a growing preference among investors for sustainable and responsible investments in the region, with the SRI-KEHATI Index serving as Indonesia’s benchmark for tracking companies that perform well on environmental, social, and governance (ESG) criteria.

The implication for investors is that the SRI-KEHATI Index offers a strategic opportunity to align financial goals with sustainable and ethical values. Its relatively stable performance, even during broader market fluctuations, suggests that ESG-compliant companies may be more resilient to risk, making them attractive for long-term, risk-averse investors. Moreover, the consistent outperformance of ESG indices in Southeast Asia, such as the FTSE4Good ASEAN 5, highlights a regional shift toward sustainability-driven investing, which could lead to more substantial future returns as demand for responsible investments increases. For Indonesian investors, allocating capital to companies within the SRI-KEHATI Index not only supports good corporate governance and environmental stewardship but also promises competitive returns in an increasingly ESG-conscious market environment.