<![CDATA[Small and Medium Enterprises (SMEs) are among the business sectors facing increasing demands to improve business sustainability through effective internal resource management and the implementation of Environmental, Social, and Governance (ESG) practices. This study aims to analyze the role of Intellectual Capital in shaping ESG practices and its impact on the sustainable performance of SMEs in Blok M, Jakarta. The study employed a descriptive qualitative approach involving five informants representing various business sectors, including culinary, fashion, services, and retail. Data were collected through semi-structured interviews, direct observations, and documentation, and were analyzed through data reduction, data presentation, and conclusion drawing. The findings indicate that Intellectual Capital among SMEs in Blok M consists of human capital, relational capital, organizational capital, and structural capital, reflected in entrepreneurs’ experience and skills, relationships with customers and suppliers, task allocation and standard operating procedures, and the use of technologies such as QRIS, cashier applications, and digital record-keeping. ESG practices have been implemented across environmental, social, and governance dimensions, although their implementation remains relatively simple and has not yet been formally integrated into business strategies. Sustainable performance tends to fluctuate but is supported by customer retention, product and service quality, good customer service, innovation, and the ability to adapt to market changes. The findings indicate that Intellectual Capital serves as an internal foundation for shaping ESG practices, which subsequently support the sustainability of SMEs in Blok M, Jakarta]]>
