Dinasti International Journal of Economics, Finance & Accounting (DIJEFA)
Vol. 7 No. 2 (2026): Dinasti International Journal of Economics, Finance & Accounting (May-June 2026

Policy Analysis and Decision-Making Framework for ESG Strategy Implementation at Pertamina's Refinery

Sri Hartati (Institut Teknologi Bandung, Bandung, Indonesia.)
Valid Hasyimi (Institut Teknologi Bandung, Bandung, Indonesia.)



Article Info

Publish Date
29 Jun 2026

Abstract

This study develops a policy analysis and decision-making framework for evaluating Environmental, Social, and Governance (ESG) strategy implementation in Pertamina's refinery business. It responds to the managerial tension between energy security, operational reliability, decarbonization, ESG credibility, and market confidence in a state-owned energy enterprise. A sequential mixed-methods single-case design was applied by combining stakeholder analysis, PESTLE analysis, Kepner-Tregoe problem diagnosis, ESG benchmarking, and Binary Analytic Hierarchy Process based on executive-level judgments. The findings show that the main issue is not the absence of ESG commitment but the weak alignment between ESG pillars and decision routines. Binary AHP supports adjusting the existing decision-making system with a priority score of 58.5% and a consistency ratio of 0.044. The study recommends an integrated ESG materiality matrix, carbon-adjusted capital allocation, an ESG digital dashboard, and phased governance integration to improve ESG strategy execution.

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Journal Info

Abbrev

DIJEFA

Publisher

Subject

Economics, Econometrics & Finance

Description

The author is invited to submit a paper for Dinasti International Journal of Economics, Finance & Accounting (DIJEFA). Topics related to this journal include but are not limited to: Accounting and financial reporting Audit Accounting management Taxation Corporate finance Personal finance Financial ...