WEBSERIE 3: Pathways to National Climate Resilience

Human and business activities are very influential. We can see this at the beginning of the Covid-19 pandemic when the PSBB policy was implemented, where in Indonesia we had experienced a reduction in carbon emission levels due to reduced community activities outside the home. But unfortunately, this is only temporary. When people and businesses bounce back to their activities, the level of carbon emissions returns to what it was before. Meanwhile, the Indonesian government through the Ministry of Environment and Forestry (KLHK) is working to reduce greenhouse gas emissions.

“From climate change mitigation efforts, the government is committed to reducing our greenhouse gas emissions by 29% compared to Business As Usual or BAU with its own resources, and can reach 41% compared to BAU with international assistance in 2030,” said the Director General of Climate Change Control, Ruandha Agung Sugardiman.

Ruandha also added that the target of reducing greenhouse gas emissions rests on 5 sectors, namely: the energy sector, the waste sector, the industrial sector, the agricultural sector and the forestry sector. Of these five sectors, the forestry and energy sectors are projected to be the largest contributors to the reduction of greenhouse gases in Indonesia. It is hoped that by 2050, Indonesia will be able to realize its long-term vision of “net zero emission and climate resilience”.

In order to support the reduction of greenhouse gas emissions and targeted low-carbon development, the government has integrated climate change and disasters into development planning at both the national and regional levels. In fact, the 2020-2024 National Medium-Term Development Plan (RPJMN) document which was established through Presidential Regulation number 18 of 2020 reflects the government’s great concern on the issue of climate change. This can be seen from one of its chapters which specifically discusses the environment, disaster resilience and climate change.

Even so, the government cannot work alone. Its main business sector, can play a big role in helping achieve this plan. IBCSD itself with a network at the global level, is encouraging its member companies to jointly provide a statement as a joint voice of the private sector to protect, restore and use natural resources in a sustainable manner. IBCSD member companies also have programs for the environment, which are integrated with their respective businesses.

“APRIL Group, in 2013 built Riau Ecosystem Restoration (RER), an ecosystem restoration program that aims to protect, restore and conserve peatland forests in Riau Province, Indonesia. This program is part of APRIL’s commitment to conserving production forests. This program has resulted in no hotspots or fires occurring inside the RER concession in 2018, “said Sihol.

In line with APRIL, as told by Abu Ashar, Director of Environment & Energy, PT Vale Indonesia, the mining company he works for is also building a road map to creating clean energy before 2030. As part of Vale Global Company’s commitment to carbon neutral by 2050, PT Vale Indonesia is committed to reducing greenhouse gass emissions by 33%.

Together with Abu Ashar, present as a speaker, Ir. Medrilzam, M.Prof.Econ, Ph.D, Director of Environment, Ministry of National Development Planning / BAPPENAS; Nyoman Iswarayoga, Director of External Affairs, APRIL Group and Marcel Silvius, Indonesia Country Representative, from the Global Green Growth Institute (GGGI) Indonesia.

          On this occasion, Marcel Silvius emphasized the importance of planning for post-pandemic green growth. “Today, more than ever, it is imperative for Indonesia to consider the benefits of green economic development and sustainable, inclusive and resilient economic growth,” he said. Marcel Silvius also provides an example of investing in renewable energy which will provide at least twice as many jobs, and of higher quality, than investment in fossil fuels. Likewise, investment in pro-nature solutions, such as community-based sustainable agroforestry, which can revitalize degraded rural areas, such as Indonesia’s peatlands, and help achieve Indonesia’s commitments to mitigate and adapt to climate change.

“Through our close collaboration with Bappenas and KLHK and other government partners at the national and provincial levels, GGGI continues to support the Government of Indonesia in realizing a pathway for restoring green growth and low carbon development,” added Marcel Silvius, explaining GGGI’s commitment to support the Government of Indonesia.

Apart from the four speakers, Prof. Dr. Emil Salim, former Minister of Population and Environment and former Chairman of the Presidential Advisory Council also attended this webinar. Acting as a responder, Emil Salim agrees with the urgency for low carbon development in Indonesia. This was also conveyed by another respondent, Gita Syahrani, Executive Director of Lingkar Termu Kabupaten Lestari.

This webinar, supported by APRIL, PT Vale Indonesia, GGGI and L’Oreal Indonesia, is the last in a series of webinars held by IBCSD since last June. In total, there have been four webinars that have been held covering the three pillars of the SDGs, both in the economic, social, and environmental pillars. All webinar reruns can be watched again via the IBCSD YouTube account.

Webserie 3: https://www.youtube.com/watch?v=nhtMB0lKAiI&feature=youtu.be

WEBSERIE 2: SMEs and Ways to Economic Recovery

In the IBCSD webseries for economic pillars that focus on MSMEs, and entitled “SMEs and Ways to Economic Recovery”, Minister of Cooperatives and SMEs Teten Masduki in his keynote speech represented by special staff of the Minister for Creative Economy, Fiki Satari, stated that there were 123.46 trillion funds prepared for SMEs in the National Economic Recovery (PEN) program. As of July 30, 2020, 22.57% of these funds or Rp 27.86 trillion had been absorbed.

The important role of SMEs in the national economy reflects the important role of SMEs in achieving the Sustainable Development Goals (SDGs) in Indonesia. MSMEs can be at the forefront of achieving the economic pillars of the SDGs by creating jobs, creating decent working conditions, business innovation, adapting and mitigating negative economic, social and environmental impacts on business operations for inclusive and sustainable economic growth.

Collective action from various sectors is urgently needed to support the revival of MSMEs which have been badly hit by the impact of the Covid-19 pandemic. In this case, the business sector can be a motor for economic growth and job opening. The business sector has the ability to find solutions through technology, innovation and investment. The business sector can also play a role in addressing negative environmental and social impacts through the value chains and supply chains of their business operations. Until now, the business sector has also taken part in developing SMEs for the achievement of SDGs.

“For example, one of our members, the APRIL Group, empowers local communities to improve community welfare through training in sustainable and modern agricultural skills for village farmers in the One Village One Commodity (OVOC) program”, said Sihol Aritonang, Chairman of IBCSD. It is known, APRIL Group works with village communities to select suitable products to specialize in their area, then provides training on modern agricultural methods.

Other example, PT HM Sampoerna Tbk has built a 27 hectare entrepreneurship training center called the ‘Sampoerna Entrepreneurship Training Center’ (SETC) located in Pandaan, East Java. SETC is open to the general public as well as SME’s actors and provides support in the form of free training, access to markets and the use of technology. Since its establishment in 2007, SETC has trained more than 65,000 people and has been visited by more than 110,000 people. Other than thet, PT L’Oreal Indonesia also helps the fostered salons to get back into business in the midst of this new normal.

Present as a speaker at this webinar, Ir. Ahmad Dading Gunadi, MA, Director of Small, Medium Enterprises and Cooperatives, BAPPENAS; Melanie Masriel, Communications, Public Affairs and Sustainability Director, PT L’Oréal; and Arga Prihatmoko, Manager of Regional Engagement & Sustainability, PT HM Sampoerna. In addition, MSME actors were also presented as responders.

Watch the recorded webinar here: Youtube.com/WEBSERIE 2: SMEs and Ways to Economic Recovery

WEF Report: The Future of Nature and Business

The report highlights the need for a fundamental transformation across three socio-economic systems, which represent over a third of the global economy and provide up to two-thirds of all jobs. These systems are: food, land and ocean use; infrastructure and the built environment; and extractives and energy. Together they drive the threats which endanger almost 80% of the total threatened and near-threatened species. These systems, therefore, have a significant opportunity and responsibility to reverse nature loss. But they also have tremendous upside benefits to gain by embracing this transformation now.

The Future of Nature and Business sets out how 15 transitions across the three systems can form the blueprint of action for nature-positive transitions which could generate up to US$10.1 trillion in annual business value and create 395 million jobs by 2030.

The report has been prepared in collaboration with AlphaBeta. Its findings inform the working priorities of the Champions for Nature, a community of leaders disrupting business-as-usual to lead the way to a nature-positive global economy, as well as a Policy Companion report which sets out how governments can ensure nature is integrated into economies as part of a Great Reset, in a way that delivers high-quality jobs and new sources of economic value, while preserving the natural capital needed for public health and societal resilience.

Download the report

Source: https://www.weforum.org/reports/new-nature-economy-report-ii-the-future-of-nature-and-business*

PT East West Seed Indonesia: “Panah Merah Peduli Aku dan Kamu”

  1. EWINDO Securing Seed Supply & Industry Alignment

EWINDO convincing Indonesia Seed Industry Associations to submit a letter to Indonesia National Disaster Management Agency (BNPB), to propose un-hampered logistics for food and agriculture inputs. Supported by the local and central government, with the issuance of a letter from the Bupati of Purwakarta as well as the Ministry of Agriculture, EWINDO will carry out business processes effectively and safely following the Covid-19 security guideline.

  1. EWINDO’s Social Capital Initiatives

EWINDO initiate a fund-raising committee and collect employee donation and company contribution. Donations collected are used to make 2000 PPE for medical personnel in Purwakarta and another EWINDO’s working area, including making and distributing 10,000 masks for employees and related colleagues, as well as farmers in the field, and providing groceries for the surrounding community. To remain employee health condition, Management take an action by providing masker and multivitamins for the employees and their families. 

 In order to grow and produce short-lived vegetables to be distributed to the community EWINDO distributed 1000 seed pouch to Sekolah Alam Foundation throughout Indonesia. Additional action beside Covid-19 prevention, in collaboration with the local government and health office, EWINDO also carried out Dengue Fever prevention since the cases increased around Purwakarta office

With program “Panah Merah Peduli Aku dan Kamu” EWINDO continues to disseminate and educate the prevention of Covid-19, not only to internal employees, but also to the surrounding community and of course to the farmers. In order to support Covid-19 prevention, EWINDO distributed 200,000 free masks in our seed boxes.

  1. EWINDO Conduct Self-Assessment for Employee

EWINDO conducts self-assessment for employees after the long holiday of Eid Fitri and listed people who travel out of town and do activities in the crowd or public facilities. As follow up of self-assessment, some employees required undergo rapid tests, they are employees who are at risk of exposure to Covid-19, either because they are traveling from the red area of Covid-19 transmission as well as they experience being in a crowd. This rapid test is used as an initial screening for employees to make sure they are entering the company area in a healthy condition. Up to now 30 employees undergo rapid test with Non-Reactive result, means they are healthy and safe to work

 

Read PT Ewindo report on Covid-19 action here:

https://drive.google.com/file/d/1CL7DNolTa4UbGcK7CwG61EweQXRaDjW5/view?usp=sharing

Crucial Role of Private Investment for Post COVID-19 Economic Recovery

The Global Investor Alliance for Sustainable Development (GISD) is an alliance that is fronted by and consists of 30 business leaders from various parts of the world, including Indonesia. This is one of the concrete steps involved in restoring the post-pandemic world economic order. A joint effort is needed for a ‘green’ economic recovery with a focus on creating jobs and new businesses that are able to adapt and transform and adopt environmentally friendly principles to create sustainable and resilient growth. GISD works side by side in an effort to increase investment in sustainable development projects to build a stronger economy.
 
In response to the crisis caused by Covid-19, alliance members agreed in accelerating efforts to align investment with the goals of sustainable development and integrate SDGs into their business models. They are also committed to building innovative financing and investment platforms to advance Sustainable Development Goals through COVID-19 bonds, risk-sharing tools, joint investment and business matchmaking platforms for affected countries, including Indonesia.
 
Adding to this, Shinta Kamdani, a member of the GISD alliance representing Indonesia who is also the President of the Indonesian Business Council for Sustainable Development (IBCSD) stressed that with crisis comes an opportunity to improve the socio-economic order, including the development paradigm. “Economic recovery from COVID-19 will require sustained and resilient investment. Going forward, Sustainable Development Goals (SDGs) will be an important key to economic recovery, so the business sector must start integrating that value into their business models “. The Covid-19 pandemic has caused a deep social and economic crisis in Indonesia. As many as 3.05 million workers were affected by layoffs, and some business sectors experienced a significant performance decline. This pandemic proves that social and environmental aspects play an important role for economic activities.
 
Seeing this phenomenon, Shinta Kamdani who also holds the position of CEO of Sintesa Group has prepared a roadmap for the SDGs to be integrated in its business. Sintesa Group which is a strategic investment company in Indonesia focuses on 4 business pillars, namely property, energy, industrial products and consumer products, upholding the vision to become a Sustainable Excellence Company. “We use this pandemic for the transformation of Sintesa, one of which is through changes in business operations that will be directed to the lens of a circular economy, on the other hand we have also collaborated with several large companies in Indonesia to support the achievement of sustainable programs through providing access to social investment (impact funds ) for MSMEs that are in line with the focus of the SDGs “, Shinta said.

Forest Concession Companies Action to Help COVID-19 Prevention

RAPP President Director, also IBCSD Chairman, Sihol Aritonang handed over this assistance directly to APHI Chairperson Indroyono Soesilo. The donation of medical equipment and necessities from these members is a form of the company’s responsibility and care to support the Covid-19 handling program carried out by the Indonesian government specifically through KLHK.

In total, the Royal Golden Eagle through the Tanoto Foundation brought in 100 thousand protective clothing, 1 million masks, 1 million gloves and 3 thousand protective glasses to provide more adequate protection to medical officers in Indonesia. This assistance has begun to be distributed through BNPB (read more here), and also to Covid-19 referral hospitals in Jakarta, Riau and North Sumatra.

Other member of IBCSD, the APP Sinarmas, also put on some donations. The donations are in the form of 40 thousand pcs masks, 1.000 liters of filma cooking oil, and packages of Lianhua Qingwen Herbal medicines from China. Furthermore, the collected aid will be handed over and coordinated with various related parties specifically with the KLHK Covid-19 Task Force.

 

Indonesia’s Sustainable Consumption and Production (SCP) towards 2030 and Practical Action Guidelines for the Private Sector

The Sustainable Development Goals (SDGs) were formally agreed by heads of government in 2015 as a global policy agenda and framework for development until 2030. The SDGs consist of 17 goals and 169 targets which are expected to be a reference for global action plans for development 15 next year (2015-2030). IBCSD as a business association committed to supporting sustainable development has also encouraged private sector participation to support SCP through the Green Lifestyle Program since 2017. In 2020 this program has entered the second phase with the aim of strengthening collaboration by involving more business actors and stakeholders related to creating market demand that supports the achievement of SCP in Indonesia.

 

The webinar was attended by Head of Environment and Forestry Standardization Center from the Ministry of Environment and Forestry: Ir. Noer Adi Wardojo, M.Sc. as the main speaker. As stated by Noer Adi in the webinar, IBCSD will take the responsibility to become an official partner of the Ministry of Environment and Forestry regarding the SCP standards for businesses. It is in line with the objective of the webinar, which are: To get input from private sectors on the the framework of Sustainable Consumption and Production (SCP) Indonesia until the year 2030, and to enhance private sector network and collaboration in implementation of the Green Lifestyle project to support SCP (SDG 12) in Indonesia

 

PT Multi Bintang Indonesia: from hand sanitizers, cloth masks, to staple food for the ones in need

To further support medical staff in the four hospitals, Bintang has also donated a total of 2,250 hazmat suits, which were produced in collaboration with a local confection enterprise in Jakarta whose business is also affected by  COVID-19.
 
Bir Bintang also produced 50,000 cloth masks in collaboration with tens of tailors from the local confectionery industry in Bali, whose businesses have been heavily impacted by the decline of tourism. This initiative is the brand’s way to support the government’s appeal to use masks whenever people go outside of their house. The use of washable and reusable cloth masks becomes a more environmentally-friendly option amidst the ongoing efforts to curb the spread of COVID-19.
 
Employees of Multi Bintang Indonesia also raised funds by setting aside part of their income to be used for helping those in need in the form of staple food or rice. The initiative is called #NasiDiMeja (rice on the table), where the money collected is used to buy rice, which will then be distributed to thousands of residents around Multi Bintang breweries in Tangerang and Sampangagung, as well as to hundreds of subcontractors’ employees who have been working with Multi Bintang, such as third-party cleaning staff, but will be losing their job or income due to the impact of COVID-19 to their companies.
 
248 employees of Multi Bintang Indonesia participated in the initiative and, with additional support from the company, have managed to raise more than IDR 500 million, which can be used to help provide staple food for almost 2,300 families in need. Thousands of 10-kg rice packages will be distributed gradually in May, June and July 2020.

“Our Solutions Are in Nature”

Speakers from various stakeholders shared their insights to increase people awareness and build collaborative actions to steward the biodiversity in Indonesia. Director General for Natural Resources and Ecosystem Conservation, Ministry of Environment and Forestry, Mr. Wiratno, M.Si shared 10 ways to manage forest conservation that among others include seeing community as subject, respect for human rights and local wisdom, cross-sectors collaboration, science based-decision making and multi-layers leadership. From business perspective, Dharsono Harsono, CEO PT RMU, emphasised that to protect forest, businesses need to learn from local community and work seriously for their welfare. “To make the community prosperous is the key for stewarding the forest”, said Dharsono.

The important role of community in conserving the biodiversity was also jointly agreed by the speakers from both indigenous and religious Communities. Director for Indonesia Conservation Community Warsi, Rudi Syaf raised the importance of going back to local wisdom in restoring the biodiversity. “In the past forest was well managed, because the indigenous community saw it as the source of life”, said Rudi. From Islam perspective, Dr. Hayu Prabowo, Head of Environment and Natural Resources Conservation, Indonesia Ulema Council (MUI) shared that MUI has mobilised the communities and organizations to protect the environment through religious approaches, such to integrate textual doctrine and contextual studies on environment, to inspire and empower local leaders and organizations as well as to mobilise investment and assets supporting the environmental protection. Pastor Jimmy Sormin, Executive Secretary for Testimony and Creature Safety, Communion of Churches in Indonesia (PGI) also shared that particularly for the last decade, the churches have been very active to promote awareness, behaviour change and concrete actions for the environment sustainability.