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Abstract
This study aims to analyze the influence of digital transformation and Environmental, Social, and Governance (ESG) disclosure on the financial performance of energy companies in Indonesia. The background of this research stems from the inconsistency of previous studies and the increasing demand for digitalization and sustainability in the energy sector during the energy transition. This study uses secondary data obtained from the annual reports and sustainability reports of energy companies listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period, with a total of 157 observations. Digital transformation is measured using the Digital Transformation Index (DTI), ESG disclosure is measured using the GRI Standards 2021, and financial performance is proxied by Price to Book Value (PVB). Data analysis uses panel data regression with a Fixed Effect Model (FEM) approach based on the results of the Chow and Hausman test. The results show that digital transformation has a significant but negative effect on company financial performance, while ESG disclosure has a positive and significant effect. Simultaneously, both variables have a significant influence with an R-squared value of 0.850, indicating that the model is able to explain variations in financial performance strongly. These findings underscore the importance of synergy between digital investment and sustainability practices as a strategy to strengthen the value of energy companies in Indonesia.