Environmental Responsibility of Indonesian Manufacturing Companies

Manufacturing companies have responsibility to participate in reducing the environmental problems impacted by their operations. This study aims to identify the efforts of Indonesian manufacturing companies in abating environmental impacts caused by their production processesand to understand the behaviour of manufacturing companies in providing environmental information to their stakeholders. The population of this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) and PROPER in 2012-2016. By employing purposive sampling, the study collected 135 data from 27 companies. On average, Indonesian manufacturing companies earned grade of 3 (Blue) in implementing PROPER. The extent of environmental disclosure is only around 38%. Environmental disclosure of manufacturing companies is influenced by rete of environmental performance and company size. Environmental performance is significantly affected by profitability and size. Leverage does not influence environmental performance, environmental disclosure, and profitability. The level of environmental disclosure is mostly descriptive and does not have a specific time frame. Indonesian manufacturing companies should improve their environmental performance and environmental disclosure.