The Role of Environmental and Social Management System (ESMS) in Strengthening Community Engagement for Energy Infrastructure Development in Indonesia

Abstract

This article examines the role of Environmental and Social Management Systems (ESMS) in enhancing risk governance and community engagement within Indonesia’s energy-infrastructure sector. Drawing on comparative document analysis and interpretive synthesis, the study explores how ESMS frameworks—particularly those aligned with the International Finance Corporation (IFC) Performance Standards—contribute to institutionalizing environmental and social accountability. The findings reveal that while ESMS adoption has advanced, implementation remains fragmented and often compliance-driven. Integration with Enterprise Risk Management (ERM) systems and the development of participatory grievance mechanisms emerge as critical enablers for building community trust and achieving long-term project legitimacy. The study further highlights that effective ESMS performance depends not only on technical rigor but also on relational factors such as transparency, inclusivity, and responsiveness. Policy recommendations include mainstreaming ESMS principles into Indonesia’s national regulatory frameworks, strengthening institutional capacity for social-performance management, and establishing multi-stakeholder monitoring platforms. By reframing ESMS as a collaborative governance instrument, the article underscores its potential to transform the energy sector from compliance-centered practice toward trust-based, socially legitimate sustainability.