<![CDATA[This study aims to analyze the influence of Intellectual Capital (IC) and Environmental, Social, and Governance (ESG) disclosure on firm value in the consumer non-cyclical sector listed on the Indonesia Stock Exchange (IDX) during the period 2022–2025. The research is motivated by the growing importance of intangible assets and sustainability practices in shaping market perceptions, particularly in industries characterized by high competition and strong reliance on innovation. Firm value is measured using the Price to Earnings Ratio (PER), which is considered to better reflect market expectations of profitability compared to Tobin’s Q or Price to Book Value. A quantitative approach was employed with purposive sampling of 76 firm-year observations and multiple regression analysis to determine the appropriate model. The findings reveal that IC has a significant positive effect on firm value, confirming that efficiency in managing human capital, structural capital, and relational capital enhances investor confidence and long-term growth prospects. In contrast, ESG disclosure shows a significant negative effect, indicating that the market has not yet perceived sustainability reporting as a positive signal, but rather as an additional cost that reduces short-term profitability. This result strengthens the indication of greenwashing practices due to weak ESG reporting standards in Indonesia. The coefficient of determination (R²) of 0.612 demonstrates that IC and ESG jointly explain more than half of the variation in firm value. This study contributes theoretically by emphasizing the dominant role of IC as a determinant of firm value in emerging markets and practically by providing implications for management, investors, and regulators in addressing the dilemma of whether ESG represents a global trend or merely an illusion of sustainability.]]>
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