Journal La Sociale
Vol. 7 No. 2 (2026): Journal La Sociale

Integration of Governance, Risk, and Compliance and Environmental, Social, and Governance for the Indonesian Banking Sector

Jerry Marmen Simanjuntak (Faculty of Economics and Business, Universitas Pembangunan Nasional “Veteran” Jakarta, Indonesia)
Airlangga Surya Kusuma (Faculty of Economics and Business, Universitas Pembangunan Nasional “Veteran” Jakarta, Indonesia)
Kevin Naufal Widyadhana (Faculty of Economics and Business, Universitas Pembangunan Nasional “Veteran” Jakarta, Indonesia)



Article Info

Publish Date
03 Apr 2026

Abstract

Coordination of state intelligence is one source of problems which also This article explores the integration of Governance, Risk, and Compliance (GRC) with Environmental, Social, and Governance (ESG) in the banking sector. The integration of GRC and ESG, known as ESGRC, plays a crucial role in mitigating both financial and non-financial risks, enhancing reputation, and creating long-term value through smarter risk management and sustainable governance. Additionally, ESGRC facilitates better responses to global challenges such as climate change and social inequality while unlocking new opportunities in sustainable finance, including carbon trading and green financing. Other strategic benefits include improved transparency, accountability, and corporate performance. However, the article highlights several major challenges, including the need for investment in advanced technologies like Big Data and Artificial Intelligence, as well as the cultural shifts required to support ESGRC adoption. Regulations like POJK 51/2017 and POJK 14/2023 in Indonesia serve as key drivers for ESGRC implementation, though global uncertainties remain significant barriers.

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Journal Info

Abbrev

JournalLaSociale

Publisher

Subject

Social Sciences

Description

Journal La Sociale ISSN 2721-0847 (online) and ISSN 2721-0960 (Print) Includes all the areas of research activities in all fields of Social Sciences such as Humanities, Law, Anthropology, History, Administration, Geography, Archeology, Communication, Criminology, Education, Government, policies, ...