Corporate Governance, ESG Strategy, and Company Performance in Indonesia Amid the Trade War

DOI

10.2991/978-94-6239-709-5_49How to use a DOI?

Keywords

ESG; corporate governance; firm performance; trade war; Indonesia

Abstract

This study aims to analyze the role of corporate governance in Indonesia in aligning Environmental, Social, and Governance (ESG) strategies with firm performance amid the dynamics of the global trade war. The research is motivated by the increasing uncertainty in international trade, particularly the U.S.–China trade war, along with domestic regulatory pressures such as Indonesia’s Financial Services Authority Regulation (POJK) No. 51/POJK.03/2017 mandating sustainability reporting. Employing a Systematic Literature Review (SLR) with the PRISMA protocol, the study reviewed 30 articles published between 2018 and 2025 sourced from Scopus, Web of Science, ScienceDirect, Emerald Insight, Taylor & Francis, and Google Scholar. The findings reveal that corporate governance plays a dual role: (1) as a facilitator that enables effective ESG integration to cope with external pressures such as trade wars, and (2) as a mediator or moderator in the relationship between ESG and firm performance. Strong governance mechanisms such as board independence, audit committees, institutional ownership, and gender diversity enhance ESG transparency, strengthen market legitimacy, and improve corporate resilience. Conversely, weak governance may diminish the benefits of ESG initiatives on performance. This study contributes to the literature by integrating the context of trade wars, ESG, and corporate governance into a comprehensive framework, while also offering practical implications for regulators and firms to reinforce governance in response to global challenges.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Murdianti Middin
PY  - 2026
DA  - 2026/06/20
TI  - Corporate Governance, ESG Strategy, and Company Performance in Indonesia Amid the Trade War
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 701
EP  - 714
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_49
DO  - 10.2991/978-94-6239-709-5_49
ID  - Middin2026
ER  -