Carbon Accounting as a Strategic Signal: Evaluating Emission Disclosure and Economic Resilience in Indonesia’s Nickel Downstream Industry

Abstract

Industrialization and downstream processing (particularly nickel processing) for economic transformation provide an important direction for developing global economic resilience; yet this is costly as smelting operations carry a high carbon burden. This study examines the carbon accounting system and the quality of emission disclosures in Indonesian integrated nickel processing industries. Drawing on legitimacy and stakeholder theories, the study assesses how firms perceive, estimate, and disclose their carbon footprint to demonstrate environmental responsibility and market adaptability. The method focuses on qualitative research, using content analysis of sustainability reports from listed nickel companies over 2022–2024. We find that although technical problems continue to arise when applying carbon accounting to the operational information of smelters, proactive emissions disclosure is a strategic "green signal" that adds corporate value and opens up access to global EV supply chains. This investigation offers policy implications for developers focusing on carbon reporting to reduce ‘dirty’ nickel perceptions. From a theoretical standpoint, the research strengthens the case for sustainability accounting in the context of a transparent and competitive industrial structure of the low-carbon global market.