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As part of the United Nation’s Sustainable Stock Exchange initiative, the Indonesia Stock Exchange (IDX) seeks to implement and encourage stakeholders to achieve the Sustainable Development Goals (SDGs), including Gender Equality, in the Indonesian capital market.
Through the census of Women in Executive Leadership Teams (ELTs) in IDX200 Companies conducted by the Indonesia Stock Exchange (IDX) from December 2021 to March 2022, it was found that the number of women holding executive positions in 200 listed companies with the largest capitalization and transaction activities on the stock exchange or also called IDX200, is still minimal.
This census was carried out in collaboration with the IDX together with the Indonesia Business Coalition for Women Empowerment (IBCWE) and BOI Research, in collaboration with Accenture Indonesia, and supported by the Australian Embassy through the Catalyst and Investing in Women programs.
Director of Finance and Human Resources of IDX as well as G20 Empower Advocate-Indonesia, Risa Effennita Rustam, said that this census is expected to raise awareness of stakeholders in IDX200 and increase women’s participation in leadership positions.
“Today’s sharing and discussion in the webinar will be useful for us to create an ecosystem that is able to break down barriers for women to advance, especially in the corporate culture and business environment that supports women’s empowerment,” said Risa during the webinar entitled ‘Rising to the Top: Women Leadership. in Executive Position in IDX200’, Thursday (21/4/2022).
Maya Juwita, Executive Director of IBCWE, said that only 15 percent of women from 200 listed companies took on leadership roles in ELTs. Meanwhile, in the same period, only eight or four percent of companies have female CEOs. This number has not changed since 2019.
The eight companies are PT Vale Indonesia Tbk (INCO), PT Bank Ganesha Tbk (BGTG), PT XL Axiata Tbk (EXCL), PT MNC Studios International Tbk (MSIN), PT Prodia Widyahusada Tbk (PRDA), PT Unilever Indonesia Tbk (UNVR), PT Surya Biru Murni Acetylene Tbk (SBMA), and PT Hasnur International Shipping Tbk (HAIS).
“This census also found that as many as 94 companies in the IDX 200 in 2021 did not have a single woman sitting in the ELTs. Meanwhile, only 21% of listed companies do have a gender balance portion in ELT,” she said.
Maya also explained that there are three industrial sectors with the highest representation of women as company executives, namely, the consumer cyclicals sector at 29%, the healthcare sector at 27%, and the technology sector at 23%.
“There is a decrease in female executives in business roles, from 11% in 2019 and 2020, to 10% in 2021,” said Maya. Meanwhile, there was a positive growth in functional roles in strategic positions by 23% compared to the previous year, especially in the infrastructure industry.
For this reason, there are several recommendations that IDX should make in encouraging an increase in the number of women holding executive positions, which was conveyed by Maya. Starting from encouraging companies to achieve gender equality targets, helping companies encourage women to become CEOs and achieving gender equality, as well as providing mentorship and sponsorship for women executives to work towards their goals of becoming CEOs.
Meanwhile, President Director of IDX, Inarno Djajadi, explained the IDX’s efforts to improve gender equality in every public company, including by raising awareness and continuing to voice the importance of gender equality, and encouraging listed companies to be more transparent by reporting on gender equality.
He said that currently the number of female executives on the IDX has reached 43% and his party will strive to continue to increase that number.
“IDX will fully support all efforts to achieve gender equality. Indeed, there is no short way to achieve this, but we continue to encourage and hope that in the future there will be more women on the company’s board of directors,” said Inarno.
Reference:
28 April 2022
Tiara Tri Hapsari
