The Importance of Working Environment Disclosures in Indonesian Financial Industry : An Application of Indonesian Intellectual Capital Disclosures Framework

The national intellectual capital of Indonesia was the worst among five major Southeast Asian countries (Lin, Edvinsson, Chen, & Beding, 2014). To overcome this issue, President Joko Widodo provides his direction and commitment in the development of human capital in Indonesia (World Economic Forum, 2015). This research analyses whether Indonesian listed companies in the financial industry follows President's direction to focus on human capital. The financial industry is used as research samples due to their exemplary disclosure practices in Indonesia. Furthermore, this research uses the Indonesian intellectual capital disclosures framework developed by Mulyadi, Anwar, and Panggabean (2017) to analyse IC disclosures in this industry. This framework consists of working environment, intangible assets, and customer relations. Working environment largely consists of human capital, and this research finds that working environment was the most disclosed IC category in Indonesian financial industry in 2015