Implementing Sustainability Budget Tagging in ERP Systems: Evidence from Indonesia's State-Owned Energy Company
- AIOR Admin
- 4 hours ago
- 1 min read
Agus Rudiantoro, Achmad Ghazali
Institut Teknologi Bandung, Indonesia
Enterprise Resource Planning (ERP) systems are becoming strategic platforms for integrating sustainability metrics, though there are substantial gaps in operationalizing sustainability cost tracking within current financial frameworks. This paper explores how Sustainability Budget Tagging (SBT) can be implemented in SAP ERP at PT Pertamina and the key challenges in tracking and reporting sustainability spending. Before implementation, manual sustainability cost tracking at Pertamina took around 120 person-hours per year (only 85 percent accurate) and did not provide decision-makers with much real-time visibility. In a single-case study approach with a holistic design in which the before-and-after comparison is embedded, this study documents the end-to-end implementation process across four phases: baseline assessment, system design and development, phased deployment, and post-implementation evaluation. The data were collected through semi-structured interviews with 15 stakeholders, document analysis, SAP system logs, and dashboard artifacts. The findings show a significant positive change: a 30% decrease in reporting preparation time, a 10% increase in the accuracy of cost tracking, and a 75% decrease in budget allocation error. The research provides empirical data on ERP-supported sustainability accounting in new-economy state-owned firms. It serves as a useful guideline for designing a taxonomy, setting up SAP modules, and managing the organization during sustainability tracking implementation.
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