Corporate Compliance with Net-Zero Target and Environmental Regulations: Lessons from South Korea for Indonesia
DOI:
https://doi.org/10.58829/lp.12.1.2025.300Keywords:
Corporate Compliance, Environmental Regulation, Net-Zero Emissions, Carbon NeutralityAbstract
This study examines corporate compliance with net-zero emissions targets and environmental regulations in Indonesia and South Korea, with the aim of exploring lessons Indonesia can apply from South Korea's experience. The study uses a comparative, descriptive qualitative approach, with data collected through a review of legal documents, government regulations, corporate reports, scientific journals, and international publications. The analysis focuses on comparing Indonesia's voluntary compliance system, which still relies on fiscal incentives and non-sanction evaluations, with South Korea's mandatory compliance system through the Framework Law on Carbon Neutrality and Green Growth and the Korea Emissions Trading Scheme (K-ETS). The results show that South Korea's success in encouraging corporate compliance with net-zero is supported by a binding legal framework, integrated ESG reporting, and digital emissions monitoring. Meanwhile, Indonesia is still in the policy commitment stage. The study recommends strengthening the net-zero legal framework, integrating ESG-based reporting systems.
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