Exploration of the Potential of Greenwashing in the Sustainability Report of Cement Companies in Indonesia

This study explores the potential for greenwashing in the sustainability reports of cement companies in Indonesia through a multiple case study approach involving PT Semen A, PT Semen B, PT Semen C, and PT Semen D. Grounded in legitimacy theory, it examines how companies construct sustainability narratives and deploy strategic disclosure practices to maintain social legitimacy despite media scrutiny of their environmental, social, and governance (ESG) impacts. Five analytical indicators—selective disclosure, decoupling, attention deflection, claim greenwashing, and firm-level greenwashing—are employed to identify discrepancies between corporate narratives and operational realities. Data analysis is conducted through qualitative content analysis, which systematically cross-checks sustainability reports against media coverage from the same reporting year to reveal inconsistencies and omissions. The findings reveal that all four companies demonstrate varying intensities of greenwashing practices: PT Semen A and PT Semen B exhibit significant material issue omissions, particularly regarding environmental damage and worker safety incidents; PT Semen C displays the highest intensity of greenwashing, characterized by internal data inconsistencies and systematic exclusion of social and environmental conflicts; and PT Semen D, while demonstrating lower overall greenwashing levels, notably omits governance-related corruption issues. The study underscores the critical need for enhanced regulatory frameworks, substantive external assurance mechanisms, and greater accountability in sustainability reporting within Indonesia's cement sector to ensure genuine transparency and effective stakeholder engagement.