Does Sustainability Disclosure Valuable? Study on Issuers under the SRI-KEHATI Index of the Indonesia Stock Exchange Budi Purwanto 1 , Luthpiyah Juliandra 2 , Siti Jahroh 3 {budipurwanto@apps.ipb.ac.id 1 , sitijahroh@gmail.com 2 , Luthpiyah_juliandara@apps.ipb.ac.id 3 } Department of Management, IPB University 1 , School of Business, IPB University 2,3 Abstract. Sustainability disclosures are intended to attract investors' attention, however, for issuers under the SRI-KEHATI Index, their fundamental performance does not better than under market performance in general. This study aims to analyze whether the disclosure of sustainability can create economic value added and market value. The sample is all issuers under the SRI-KEHATI index from the beginning to 2019 which are filtered based on reporting performance. Sustainability disclosure includes environmental, social and growth factors. The analysis was performed using a moderated fixed effects panel data regression model. The results show that the disclosure of sustainability does not have a direct effect on both market and economic value added, and does not strengthen or weaken the relationship between economic added and market value. This result implies that investors do not aware of the effect of sustainability disclosure on the fundamental performance and market value. Keywords: Fundamental performance, Market performance, SRI-KEHATI Index, Sustainability disclosure. 1 Introduction Environmental issues are becoming a hot issue nowadays. Consequently, the government, companies, and the community are required to work together to forestall environmental conditions from getting worse. Specifically, companies have a stake in environmental degradation that occurs, such as poor management of industrial waste, air pollution generating from plant operations, and many others. Accordingly, companies also need to participate in maintaining the quality of the surrounding environment. Companies' contribution to preserving the environment expect to be an added value for the environment, investors, and shareholders. Companies disclose their contributions and works that promote environmental preservation through sustainability report disclosure intending to provide information to investors and other stakeholders [1–3]. Santis [4] ICoSMI 2020, September 14-16, Indonesia Copyright © 2021 EAI DOI 10.4108/eai.14-9-2020.2304900