Krealogi: Empowering the Ecosystem

Amidst this landscape, Krealogi emerges as a transformative force, serving as an ecosystem enabler for the entrepreneurial environment. Prioritizing digitalization and collaboration as fundamental pillars, Krealogi extends its reach beyond urban centers to remote communities across the archipelago, driven by a deep-seated commitment to inclusive empowerment.

 Krealogi recognizes the transformative power of women entrepreneurs in building a sustainable and inclusive economy. Through strategic programs and grassroots initiatives, Krealogi not only sparks innovation but also nurtures a dynamic ecosystem where every entrepreneur finds resonance, enriching communities at every level.

 Impact in Action: Small and Medium Enterprises at the Center of Impact

In 2023 alone, Krealogi made significant strides in empowering entrepreneurs across Indonesia. Through nine impactful empowerment programs conducted in 10 locations, Krealogi incubated over 1700 SMEs, with a remarkable 85% of them being women. Additionally, Krealogi’s inclusive approach extended to empowering disabled entrepreneurs, with 7% of those trained belonging to this community.

 These efforts not only enriched individual livelihoods but also contributed to the broader economic landscape by facilitating market access opportunities worth IDR 135 million. This enables SMEs to showcase their products and services to a wider audience, fostering economic growth and inclusivity on multiple fronts.

 Empowering Women Entrepreneurs Through Targeted Programs

Krealogi champions women entrepreneurs through dedicated programs like the Aksara initiative, conducted in collaboration with the Women’s Empowerment and Child Protection Ministry.

Aksara provides comprehensive support, including skill development and resource access, for sustainable business growth, aiming to empower over 750 women entrepreneurs in 7 remote areas of Indonesia. This initiative, initiated by Krealogi, offers an alternative income source for women vulnerable to illegal migrant work.

 In addition to that, Krealogi also partners with Karaja Sumba, a local brand dedicated to empowering women weavers in West Sumba. Krealogi’s incubation program supports economic empowerment while promoting sustainable practices and cultural preservation.

Karaja Sumba CEO Roswita Asti Kulla leads Minister Teten Masduki of Cooperatives and SMEs and staff members on a tour of a weaving village in West Sumba, East Nusa Tenggara. The tour is part of the Dialog Interaktif Menteri Koperasi dan UKM event held by the Ministry of Cooperatives and SMEs in collaboration with Krealogi to support Karaja Sumba and local entrepreneurs. (Photo credit: Cooperatives and SMEs Ministry).

This collaboration not only supports the economic empowerment of over 105 women in weaving communities but also empowers younger women to become entrepreneurs operating SMEs such as Karaja.

 Through these targeted programs, Krealogi continues to champion the role of women entrepreneurs, creating pathways for Indonesian women’s success and contributing to a more inclusive and dynamic entrepreneurial ecosystem in Indonesia.

 As Krealogi continues to lead the way for inclusive and sustainable entrepreneurship in Indonesia, its new tagline “Bergerak Berdaya Bersama” encapsulates its essence. Translated as “Empower Others. Grow Together,” this tagline embodies Krealogi’s mission to empower people and foster collective growth.

 Let’s collaborate!

This program has been running for 4 years (2019-2023), and has made a significant contribution to the handling of stunting in Lampung Province. The stunting prevention program initiated by Great Giant Foods (GGF) as an elaboration of the company’s vision “Nourishing People’s Lives with Quality Food Produce in Sustainable and Innovative Way” has been carried out since 2019 together with related parties / stakeholders including the Central Lampung Regency government, community cadres and also non-Government Organization parties. The program started from 2019 to 2023 and has been implemented in 12 villages in Central Lampung Regency and a total of 4,400 beneficiaries. 

This program is carried out with 3 sub-program approaches including diet, parenting and sanitation as well as the implementation of the Rumah Pangan Lestari (RPL) area and socialization. During the program, the company has handed over approximately 8 tons of bananas and around 8000 liters of fresh milk to the beneficiaries. In addition, various efforts are given by the company in contributing to carrying out strategies to reduce stunting by conducting training or training of trainees (ToT) to cadres consisting of health cadres, school cadres and village cadres who are expected to become an extension of program implementation and spread knowledge related to stunting prevention in the community. The monitoring and evaluation process is also carried out every month by observing the continuity of activities and also the percentage of progress from the expected results.

Based on the program, the resulting impacts include being able to increase the height and weight of children with an average increase of 0.7 kg and 3 cm meters. This is an effort to help Central Lampung Regency in order to reduce the prevalence of stunting which in 2013 according to Basic Health Research (Riskesdas) data the prevalence of stunting at 52.68% until 2022 the prevalence of stunting in this district according to data from the Indonesian Nutrition Status Survey (SSGI) is only 8.7%. This is an achievement to be proud of considering that stunting is the main problem of child malnutrition in Indonesia and overcoming this problem is included in the national government’s strategic plan. 

Appreciation for the implementation of this activity through the Lampung Province Women and Children’s Rights Observer Institute (LPHPA) gave appreciation to Great Giant Foods (GGF) as a company that fulfills 12 responsive indicators in supporting the government, especially in Central Lampung Regency as a Child Friendly District. Through the collaboration program carried out by GGF and the Central Lampung Regency Government in participating in reducing stunting rates, it is hoped that it will improve the welfare of the community, especially mothers and children.

The Better Life Farming program epitomizes Bayer’s commitment to supporting smallholder farmers and enhancing farmer welfare and national food security. The program, a testament to Bayer’s sustainable initiatives in collaboration with partners, aims to reach 4 million farmers, with 20% being women farmers, across 17 provinces from 2020 to 2030. The program strives to foster advanced, self-sufficient, and modern agriculture practices.

Under Better Life Farming, farmer groups and individual farmers receive on-farm training, entrepreneurial guidance, and facilitated access to financing, agricultural insurance, and market access. Through Better Life Farming Centers (BLFCs), Bayer and its partners provide technological access, education, and mentoring to enable farmers to professionally and commercially manage their agricultural businesses. BLFCs adopt a holistic approach to farmer welfare, measuring not only financial well-being but also gender equality and health.

Furthermore, Better Life Farming prioritizes the empowerment of women farmers by providing specialized training and education on reproductive health and access to modern contraceptives. By addressing the unique needs of women farmers and wives of farmers, Better Life Farming aims to create an inclusive and sustainable agricultural ecosystem.

Bayer’s initiative underscores its dedication to fostering youth involvement in agriculture, nurturing sustainable farming practices, and championing the eradication of hunger. Through collaborative efforts and innovative solutions, Bayer continues to pave the way towards a future where agriculture thrives, and communities flourish.

The RDF technology at the core of this initiative is a remarkable innovation, transforming Municipal Solid Waste (MSW) into a valuable renewable energy source for use in the cement manufacturing process. Notably, this project targets the revitalization of the Cimenteng landfill, a site currently tasked with managing waste from 27 sub-districts, amounting to an overwhelming 220 tons per day, exceeding its designated capacity. The RDF technology will not only facilitate the sorting and preprocessing of waste but will also provide a transformative solution for managing the accumulated waste at the landfill. The hazardous waste and other materials will be separated, and the resulting RDF products will be utilized as an alternative fuel, effectively replacing coal in the production process of SCG Cement.

Standing in front of the RDF construction area, Regent of Sukabumi; President of SCG’s Green Circularity Business, Visut Chongcharoenkit; Country Director of SCG in Indonesia, Warit Jintanawan; President of PT Semen Jawa, Somchai Dumrongsil; President of UAC in Indonesia; Head of West Java Environment Office; Head of Sukabumi Environment Office; Vice Chairman of DPRD; and Secretary of Sukabumi Regency (23/8). 

This project is indicative of a shared vision between SCG and the Sukabumi District Government, jointly working towards reducing waste and harnessing the potential of renewable energy sources. The initiative is projected to effectively manage 330 tons of waste daily and produce an impressive 100 tons of RDF products, serving as an eco-friendly substitute for coal in SCG Cement production. With construction set to commence in 2023 and full operational capability anticipated by 2024, PT Semen Jawa’s pioneering commitment to environmental responsibility becomes manifest, aligning with the ESG (Environmental, Social, and Governance) framework.

Marwan Hamami, the Regent of Sukabumi, expressed his appreciation for SCG’s involvement in advancing sustainable waste management solutions. RDF technology, he believes, will wield a positive influence on the environment and the community, contributing to the realization of waste reduction targets and establishing an advanced waste management system. Prima Mayaningtias, Head of the West Java Provincial Environment Agency, commended the collaboration and aspired that RDF technology will reduce waste volume at the Cimenteng landfill by an impressive 30-40%.

This transformative RDF technology initiative represents a significant step forward in SCG’s dedication to its ESG 4 Plus principles. These principles encompass achieving net-zero emissions, crafting eco-friendly products, reducing social inequalities, and fostering collaborations with stakeholders. As the world grapples with increasingly complex environmental challenges, SCG’s pioneering efforts in Sukabumi offer a tangible example of the remarkable impact that private and public sector collaboration can achieve. This endeavor is not just a local milestone; it is a profound contribution to global sustainability efforts, showcasing SCG’s commitment to shaping a more sustainable future for both society and the environment.

Chakkapong Yingwattanathaworn, the President Director of PT SCG Indonesia, emphasized that the development of RDF technology is a tangible manifestation of SCG’s ESG 4 Plus principles, focusing on the target of achieving net-zero emissions by 2050 and the realization of a green industry through every aspect of the company’s operations.

As the project commences in Sukabumi, it serves as a testament to the power of collaboration between public and private sectors in addressing complex challenges such as waste management and renewable energy adoption. SCG’s commitment to environmental stewardship, technological innovation, and a sustainable future stands as a beacon of hope in a world where such initiatives are increasingly vital for our planet’s wellbeing.

Somchai Dumrongsil, Presiden Direktur PT Semen Jawa: Pembangunan RDF merupakan kolaborasi SCG bersama Pemerintah Daerah Kabupaten Sukabumi. Teknologi RDF ditargetkan mampu mengelola 330 ton sampah/hari dan akan  menghasilkan 100 ton produk RDF sebagai bahan bakar pengganti batu bara dalam produksi Semen SCG.

Warit Jintanawan, SCG’s Country Director in Indonesia, underscored the transformative nature of the program, stating, “The SCG Sharing the Dream program has been an unwavering commitment for 11 years since its launch in 2012. The program demonstrates our unwavering commitment to drive education participation in Indonesia. We are proud that the program has changed the lives of 4,040 beneficiaries and has disbursed IDR 19 billion for education and development programs.”

The importance of a good quality education in Indonesia’s efforts to achieve “Indonesia Emas 2045” is non-negotiable. Chakkapong Yingwattanathaworn, President Director of PT SCG Indonesia, highlighted the collaborative essence of the program in narrowing this education gap. He said, “Addressing this gap requires concerted efforts from the government, industry stakeholders, and academia to ensure inclusive education that is free from socio-economic and gender barriers. This initiative is closely aligned with the two fundamental missions encapsulated in the ESG 4 Plus framework, namely reducing disparities and fostering collaboration.”

Minister Suharso Monoarfa encouraged scholarship recipients to embrace their unique chance, emphasizing the importance of pursuing their dreams and leveraging resources for personal and communal betterment.

The scholarships offered encompass Rp 2,000,000 for high school students and Rp 8,000,000 per year for undergraduates, ensuring sustained support throughout their academic journey, extending up to a maximum of four years. Alongside financial aid, scholars can also access personal development programs. 

SCG also champions student projects like “Eco Enzyme as an Alternative in Reducing Chemicals (ESDAPEBA)” and “E-MISSION: Utilizing Alkaline Water and Used Cooking Oil for Aromatherapy Candle Production,” showcasing its commitment to fostering talent.

Parallel to the “Sharing the Dream” program, SCG in Indonesia through PT Semen Jawa and PT Tambang Semen Sukabumi has run various other ESG 4 Plus-based initiatives and programs. Among others, the GESARI (Gerakan Desa Berdikari) program that manages 32 local MSMEs, then SCG ASIK (Aku Suka Ikan), which is the prevention of stunting by involving fish in children’s diet, and the implementation of community projects by SCG Scholars such as the Kebonmanggu Maggot Cultivation project for the community of Kebonmanggu, Sukabumi, and the Budikdamber Ruta (Fish Cultivation in Household Buckets) project for the community of Setu District, Bekasi.

ESG 4 Plus is SCG’s personalized business commitment from the global ESG (Environmental, Social, and Governance) framework. This principle is formulated into four main commitments, namely achieving net zero emissions (“Set Net Zero”), creating environmentally friendly products and realizing green industries (“Go Green”), reducing social disparities (“Reduce Inequality”), and embracing collaboration with various stakeholders (“Embrace Collaboration”).

In the CSR Outlook Leadership Forum 2023, Unggul Yoga Ananta, the Co-Founder and CEO of PT Olahkarsa Inovasi Indonesia, emphasized that the forum aimed to foster positive dialogue among stakeholders about sustainability within the ESG framework. He highlighted the global trend of addressing the climate crisis, aligning with Indonesia’s goal of achieving sustainable economic growth by 2045. He stressed the need for all stakeholders to address climate change and economic sustainability.

Ir. Sigit Reliantoro, Director General of PPKL KLHK RI, discussed “Company Performance Assessment in Environmental Management for Sustainable Business.” He underlined the importance of environmental considerations and the implementation of PROPER, which assesses companies’ environmental management performance. He noted the adverse environmental consequences of unchecked economic growth and KLHK’s efforts to shift towards regenerative development.

Maria R Nindita Radyati Ph.D., Founder and President Director of the Institute for Sustainability and Agility (ISA), explored the evolution of ESG. She explained that ESG encourages investors to consider non-financial factors when buying stocks. It originated from the collaboration between Kofi Annan, then Secretary-General of the United Nations, and the International Financial Corporation (IFC). ESG criteria are now applied across industries, influencing investors’ decisions and stock prices.

Angkie Yudistia, Special Staff to the President of Indonesia, spoke about “Building a Culture of Inclusion Within The Company.” She advocated against discrimination towards people with disabilities in the business world and called for more inclusive corporate social responsibility (CSR) programs. Angkie has actively contributed to legislation promoting equality and protection for people with disabilities since 2019.

The forum also featured 11 other speakers addressing ESG practices in various areas, from finance to education and equality.

In the evening, the CSR Outlook Awards 2023 recognized companies committed to sustainable development through CSR programs. The awards were given in several categories including Best Practice in Economic Empowerment, Best Practice in Education, Best Practice in Environment, Best Practice in Creating Shared Value and Best Outstanding Leader. A total of 28 nominees were honored.

Overall, the CSR Outlook 2023 highlighted the significance of ESG principles in shaping a sustainable future for businesses. It provided a platform for stakeholders to engage in meaningful dialogue and collaborative efforts to address global challenges such as climate change, economic sustainability, and social inclusion.

• Bentoel Group

Bentoel Group is an Indonesian tobacco company, which now is part of the British American Tobacco (BAT) Group as a leading global tobacco company with a presence in over 180 countries worldwide. Bentoel Group has shown a good commitment to sustainability as they have installed 1 MW solar panel as the source of renewable energy and plan to reach 100% renewable electricity and reduce the Scope 1 & 2 emission. It also extends the scope of water conservation from reduce, reuse and recycle the water used at its operation, to the catchment where the company operates. Bentoel Group also achieves ZWTL (zero waste to landfill) starting in 2021.

• PT Telkom Indonesia (Persero), Tbk

PT Telkom Indonesia (Persero), Tbk is a state-owned information and communications company as well as a telecommunications service and network provider in Indonesia. PT Telkom Indonesia (Persero), Tbk has shown a good commitment as they recognize their role and responsibility to the communities in which they strive to expand digital infrastructure to all regions of Indonesia including the 3T regions (Frontier, Remote, Disadvantaged), while managing social and environmental aspects. They implement community empowerment programs and reduce energy consumption, waste, and water use while enforcing ethical business operations and anti-corruption measures. PT Telkom Indonesia reports its performance achievements annually through a Sustainability Report that covers economic, social, environmental, and governance aspects.

• PT Olahkarsa Inovasi Indonesia

PT Olahkarsa Inovasi Indonesia is a CSR management consulting company, providing end-to-end-solution for CSR management by optimizing the use of technology. PT Olahkarsa Inovasi Indonesia has shown a very good commitment through creating CSR innovation for a sustainable business ecosystem since 2019 and aiming to utilize CSR as a part of the company’s long-term business strategy that should be integrated and mutually sustainable with the core business and core competency of a company.

• TORAJAMELO

TORAJAMELO is an ethical-slow fashion lifestyle brand who work together with weaving communities on design and development of weaving to preserve the authenticity of the art while also making it relevant to the market. Torajamelo has shown a good commitment as they recognize their role and responsibility to the communities in which they operate based on SDGs 1, 5, 12, and 13, addressing rural women’s poverty in remote areas while also giving attention to responsible consumption and climate action. Torajamelo focuses on reviving rural economies with weaving as an entry point, and making it as an alternative income opportunity for the women in the communities. Working on 3Cs pillars – Commerce, Community Collaboration, and Consultancy, they are currently engaging around 1100+ weavers in Toraja & Mamasa in Sulawesi island, Soe, Maubesi, & Oesena in West Timor, & Manggarai in Flores.

• PT Karya Kreasi Teknologi (Krealogi)

PT Karya Kreasi Teknologi (Krealogi) is a tech-based solution company, providing digital platforms for MSMEs operating in Indonesia. PT Karya Kreasi Teknologi has shown a very good commitment through the provision of partnerships and capacity building for local micro, small and medium enterprises (MSMEs). Krealogi’s sustainability commitment is based on the SDGs goals of Gender Equality, Decent Work and Economic Growth, and Reduced Inequality. Krealogi provides opportunities for women in MSMEs to get adequate facilities to grow their business. Krealogi also creates decent jobs to improve the community’s economy, be able to overcome poverty, and develop industries and innovations based on the craft industry, fashion, and manufacturing MSMEs.

The company’s circular economy program began several years ago, with the utilization of agricultural industry combustion waste and wood processing waste to heat boilers used in the brewing process. MBI has also built biomass facilities and established cooperation to provide electricity from renewable sources. By 2022 MBI has used 64% renewable energy, and they aim to have 100% renewable energy in production before 2025. The company’s commitment to sustainability and innovation has earned it the IBCSI Award in 2022, as The Best Circular Economy 2022 through the Maximizing Circularity Through Spent Grain Utilization program.

The latest initiative of MBI involves “Food Upcycling for the Future”, a collaborative project that aims to process food waste from the brewing process into highly nutritious food products. By partnering with P4G, RE:harvest, and ASEIC, the company aims to supply leftover grains from the brewing process as raw materials to be recycled into flour, which can later be used to make food products such as granola bars, bread, and noodles. This pilot project has the potential to contribute to the government’s target of achieving 30% food waste reduction by 2025, as one kilogram of flour from spent grain is expected to absorb three kilograms of food waste.

The inauguration of the Waste4Change Bekasi 2.0 Material Recovery House was held in conjunction with a strategic discussion on green investment opportunities and constraints. This was led by Moris Nuaimi, SE, MT, MA, Director of Infrastructure Planning, Deputy for Investment Planning of the Ministry of Investment (BKPM), representing the Minister of Investment Bahlil Lahadalia. Other notable attendees included Pandu Sjahrir, Founding Partner of AC Ventures Indonesia, and Reny Hendrawati, Expert Staff to the Mayor of Bekasi for Economy, Development, and Society.

The implementation of green investment is targeted to focus on helping waste management efforts through reducing waste at the source and handling waste downstream. The Global Sustainable Investment Alliance (GSIA) conducted a survey in 2021 which stated that green investment assets in developing countries have a growth potential of up to USD 30.7 Trillion. Meanwhile, the NPAP report states that a total capital investment of USD 18 billion is needed between 2017 and 2040 to overcome the challenges of transforming business-as-usual practices to a System Change Scenario for effective waste management and recycling.

Despite this, Systemiq & Delterra data in 2022 indicate that 97% of waste funding in Indonesia still relies on door-to-door fee collection. The method of waste collection as part of taxes and utility subscription fees is a more common method used by developed countries. Funding in the waste management sector will have a major impact on sustainability. Waste management is a basic need, so there will be a constant demand despite changing economic and social conditions.

In conclusion, Waste4Change’s innovative approach to waste management with the help of green investment is an excellent example of how companies can contribute to sustainability. By reducing waste at the source and handling waste downstream, Waste4Change is making a positive impact on the environment while creating economic opportunities. This approach is a significant step forward in the fight against waste management challenges globally. It is hoped that more companies will follow this model and contribute to the larger goal of achieving a cleaner, greener future for all.