A Journey Towards Net Zero Emission (NZE): What does NZE Mean for Private Sector?

climate change adaptation and mitigation among private sector, the Indonesia Business Council for Sustainable Development (IBCSD) and the Indonesian Chamber of Commerce and Industry (KADIN) collaborated in conducting a virtual webinar “What net zero emission means for the private sector” (14/12). This event is part of a bigger IBCSD initiative entitled  “Towards Net Zero Emission” to encourage business leadership and collective action in initiating a concrete long-term plan toward a low-carbon economy and net zero emission by following the government’s goals.

Following the Paris Agreement, which was revisited at COP26, the number of companies declaring their commitment to net-zero emissions and taking action to tackle climate change has tripled globally. At least one of the world’s five largest publicly traded companies has committed to zero net emissions by 2050.[1]

In her remarks as the President of IBCSD, Shinta W Kamdani stated, “As we all know, Indonesia is striving for low-carbon economic development by expanding measures to mitigate and adapt to climate change. To achieve net zero emissions by 2050, in line with global business trends and national targets, IBCSD and KADIN will work together to raise public awareness and understanding of the necessity of the NZE transition, promote business leadership and collective action, and collaborate among diverse stakeholders. The discussion today is intended to be one of the milestones that contribute to the private sector managing Net Zero Emissions in order to establish a sustainable economy.”

In her remarks at the Webinar “Journey Towards Net Zero Emission (NZE): What Does NZE Mean for Private Sector?” which was held virtually by IBCSD (13/12), the Director-General of Climate Change Control, Ministry of Environment and Forestry, Ir. Laksmi Dhewanti, MA explained, “Through the Nationally Determined Contribution (NDC) target, Indonesia has committed to reducing GHG emissions by up to 41% by 2030 with the support of international partnership. Indonesia’s unconditional target of 29 % NDC has been dispersed to five key sectors, including forestry and other land uses, energy, waste, industry process, and agriculture. The most significant contributors to the NDC objectives are the forestry and energy industries. The Long-Term Strategy on Low Carbon and Climate Resilience (LTS-LCCR) was developed with a long-term policy strategy in mind until 2050. This document provides guidance on how to set NDC and policy reform goals in light of current developments and demands. In essence, this endeavor is not just the responsibility of the government, but it also emphasizes the importance of all stakeholders’ contributions. As a result, we encourage the participation of various stakeholders, particularly the private sector in the implementation of the NDC and the climate change mitigation and adaptation strategy. More collaboration and networking hopefully will occur as a result of this event to meet NDC goals.”

As for several steps that have been taken by the government for low-carbon development, the Director of the Environment of the Ministry of National Development Planning/BAPPENAS, Ir. Medrilzam stated “Currently undergoing a green economic transformation is based on the premise of low carbon development. According to the Bappenas scenario, the green economy is expected to increase per capita income by about 6% in Indonesia Emas 2045. Indonesia will need massive investments of around 3-5% of GDP every year from now on to achieve the NZE. The government will be unable to finance all of them. As a result, the government provides fiscal tax incentives and import taxes for New Renewable Energy (NRE) Developers, as well as non-fiscal incentives like as license liberalization and prizes, to encourage private sector economic engagement. However, there are still risks of stranded assets, planning for green employment migration, and knowledge and innovation transfer. Indonesia will only become a market for technology from wealthy countries if we do not significantly innovate on technology.

On the same occasion, Executive Director of Institute for Essential Services Reform (IESR), Fabby Tumiwa added, “Business may implement four solutions; the first of which is to reduce reliance on fossil fuels through RNE, electrification, and the use of clean energy sources in response to increasing emissions from the sector. If we want to attain Net Zero Emissions by 2030, renewable energy should account for at least half of the primary energy supply. As a result, companies should conduct an inventory of their contribution to greenhouse gas emissions, set explicit objectives, and provide measurable transparency of target performance to the public in order to match the corporate NZE aim with the Paris Agreement target in 2030.”

Seeing this, Regional Lead – Commit to Action (CTA) Carbon Disclosure Project (CDP), Amelia Tan said, “In order to attain NZE, businesses must have science-based targets, both short and long-term by making adjustments in terms of emission residual mitigation and neutralization. The Science Based Target Initiative (SBTi) will assists your business in determining how much and how rapidly it can cut greenhouse gas emissions while also driving actual action in its operations. The International Sustainability Standard Board (ISSB) has produced financial reporting sustainability disclosure requirements that have been incorporated with state and stakeholder regulations referencing the SBTi.”

Apart from the government, a low-emissions transition also needs to be carried out by the private sector. Head of Commission on Climate Change KADIN, Dharsono Hartono explained “The issue of Net Zero Emission isn’t going away anytime soon. KADIN has 7 priority focusing on decarbonization of diverse private sectors to support the Presidential Decree on the Economic Value of Carbon, which is based on the NZE objectives of countries and businesses. One of them by concentrating on restoration and conservation initiatives which represents a significant potential for Indonesia. We believe that Indonesia has 300 billion tons of CO2 stored, which might be the country’s entry point into the carbon market. In this context, KADIN has begun to carry out many activities as a government business partner, including webinars, working on the sale of domestic carbon credits that can assist the government in meeting NDC objectives, and pushing for public-private partnerships.”

Joining the session as discussant, Azis Armand, Vice President and Group CEO of Indika Energy explained “Indika, as a holding company with an 80% coal energy portfolio, considers the crucial need to decarbonize its operations and portfolio to decrease its carbon footprint. Indika focuses on transferring energy to solar panels and mobile combustion fossil fuels to electric automobiles in its operations. Indika has divested high-carbon assets and invested in low-carbon economies in our asset portfolio. We believe Indika can reach net zero emissions in 2050 by achieving a 20% decrease in emissions in 2025 and a 40% utilization of renewable energy technologies in 2030.”

Meanwhile Deputy Director of APRIL Group’s Sustainability and Stakeholder Engagement, Dian Novarina shared, “With four pillars, the APRIL Group aspires to move to NZE by 2030. One of these is a positive climate target that includes net zero emissions from land usage, increasing the use of renewable energy in fiber operations to 50% and mill operations to 90%, and decreasing carbon emissions in all products to 25%. All APRIL 2030 commitments have precise indicators that make them measurable, auditable, and transparent.”

Desi Anwar, the webinar moderator concluded 2050 Net Zero Emission is a collective goal to which all stakeholders must commit in energy transition plan, collaborate in innovation, technology, and investment, and transparent reporting as well as calculations. Net Zero Emission is not only the responsibility of one corporation or one country, but of the entire globe as residents of the planet.

 

Rewatch the discussion here: A Journey Towards NZE: What does NZE Mean for Private Sector?

For further the webinar video, please access https://rebrand.ly/VideoNZE2021

To download the material, please go through https://rebrand.ly/MateriNZE2021

Waste4Change Appreciating the Responsible Waste Management Initiative

IBCSD member, PT Wasteforchange Alam Indonesia (Waste4Change)has just celebrated its 7th Anniversary. Closing the series of celebrations, Waste4Change held the “Award4Change 2021” as a recognition for the implementation of responsible waste management by companies and government institutions. In this event, Waste4Change also gave lifetime achievement awards to two figures who inspired solid waste in Indonesia. Award4Change 2021 which was attended by the Director of Waste Management of the Ministry of Environment and Forestry, Novrizal Tahar, Managing Director of Waste4Change Mohamad Bijaksana Junerosano, President of IBCSD Shinta Kamdani, Chairman of MVB Alistair Speirs, Ciliwung Care Community Activist Suparno Jumar, and Founder of The BGBJ Bantar Gebang Resa Boenard, as well as award recipients from waste companies, organizations, and institutions.

Award4Change is an annual event held by Waste4Change as a form of appreciation for clients, partners, and partners from both the private and government sectors. There are 10 categories with a total of 27 recognition: Most Zero-Waste to Landfill, Most Reduce-Waste to Landfill, Most Responsible Brand, Local Initiator of the Year, Community Empowerment Project Highlights, Ecotourism Project Highlights, Research Project Highlights, Low-Value Plastic Collection Project Highlights, Best Recycling Partner, Great Collaboration, and the Waste Warrior lifetime achievement category.

“Through the Award4Change 2021, we would like to appreciate to companies that have made their best efforts in waste management responsibilities. Start from ensuring the supply chain runs optimally at every stage to minimize waste generation, using environmentally friendly packaging to increase recycling value, ensuring partners and consumers are involved in waste reduction and management,” said Waste4Change Managing Director, Mohamad Bijaksana Junerosano (Sano)

“In its 7th year, Waste4Change has managed 8,424 tons of waste. Our waste transportation services have reached 2,828 families in two residential areas as well as 68 client companies in 114 location points. Waste4Change has also run 227 community assistance projects, research, and waste management training, with a total of 514,306 direct beneficiaries spread throughout Indonesia. We were able to achieve all of that because of the support from our clients, partners, partners, and activists for solutions to solid waste issues who continue to struggle with us,” said Sano.


Source : https://waste4change.com/blog/award4change-2021-an-appreciation-to-responsible-waste-management-initiative/

Frontier Sumatra: A Documentary of Kampar Peninsula’s Incredible Biodiversity

Jakarta, 30 November 2021 – IBCSD’s members, APRIL held the first screening of Frontier Sumatra attended by dozens of enthusiastic stakeholders.?Frontier Sumatra tells the incredible story of the people, the animals, and the land of the Kampar Peninsula in Riau Province, a remote peatland rainforest twice the size of Singapore. At its heart is Restorasi Ekosistem Riau (RER), the ambitious forest ecosystem restoration project of APRIL that unites communities, scientists, and industry in the battle to protect one of the last intact peatland forest landscapes in the region.

Restorasi Ekosistem Riau (RER) is a ground-breaking private sector-led (APRIL) project to restore and conserve ecological important high conservation area on Indonesia’s Kampar Peninsula and Padang Island, Riau Province. Kampar Peninsula is the largest remaining intact peat forest in Sumatra and home to at least 823 species, many of them critically endangered. The forest, on Sumatra’s east coast, has been degraded over the years by wildlife poaching, illegal logging, and human encroachment. Since 2013, RER has been working with partners from the private and public sectors to protect this vital ecosystem


Speaking at the event, Anderson Tanoto, Managing Director, RGE highlighted the importance of conservation and responsible landscape management. “We have run our business successfully. But we also have to protect the forest landscapes around us”.

At the event, Praveen Singhavi, President, APRIL Group, and Lucita Jasmin, Director of Sustainability and External Affairs, also provided updates on the company’s business performance and the ongoing implementation of its sustainability commitments.? The screening was just one of several activities set up to mark the one-year anniversary of the launch of APRIL’s long-term 2030 sustainability targets.

This project documentary has proven that the private sector is particularly concerned about the environment’s long-term sustainability. The movie succeeds in documenting the attempts to restore the Riau ecosystem, in which all parties are involved, including not only the ecological expert team but also the population of the surrounding region. IBCSD hopes to see more private sector businesses take action to protect Indonesia’s biodiversity.

Responsible Plastic and Packaging Waste Management, Adopting the Circular Economy Model for the Private Sector

As an effort in the sustainable development economy as well as encouraging the application of circular processing of plastic and packaging waste in the private sector, the Indonesia Business Council for Sustainable Development (IBCSD) and the WWF Indonesia Foundation held a “Circular Business Model for Responsible Plastic Waste Management” Webinar on Tuesday, November 9, 2021.

“The purpose of this event is to strengthen and support the synergy of multi-stakeholder collaboration. Plastic waste dependency and mismanagement pollute both the land and the water. Packaging waste is the producer’s duty, both directly and indirectly. The Minister of Environment and Forestry Regulation No. 75 of 2019 specifies that businesses need to re-examine the pre-to-post-production process to reduce waste by 30% by 2029. Businesses should begin to use the 5R Principles (reduce, reuse, recycle, recover, and repair) as a circular economy strategy to optimize the product value chain. I hope that this webinar will encourage businesses to adopt the Extended Producer Responsibility (EPR) implementation” said Djoni Wesida, Executive Committee Member of the IBCSD as his opening remarks.


The Deputy Secretary for Environmental and Forestry Management Coordination, Coordinating Ministry for Maritime Affairs and Investment, Dirhansyah Conbul, also realizes that our awareness towards responsible waste management and support of multi-stakeholders are the main focus of efforts that have been made by the government. “The MoEF Regulations No. 75 of 2019 covers Extended Producer Responsibility (EPR) policy which creates a market mechanism for producers to collaborate with recycling facilities, waste bank managers, or nearby facilities and agencies to reduce the cost of waste management infrastructure and recycling mechanisms. The government is now working on ten waste management sites using Refuse-Derived Fuel (RDF) technology to accelerate waste reduction. Hopefully, unique ideas may be implemented into future collaborative projects as a result of this webinar.”

This online webinar involves governments, businesses, associations, and communities to discuss strategies and action plans to reduce waste. It also discusses the role of producer in the transition to a circular economy with the adoption of EPR, changing the people behavior in perceiving waste management as well as opportunities, challenges, and innovative solutions for Indonesia to adopt a circular business model. Other speakers were present during the discussion; Jazlyn Lee, Regional Coordinator of SEA WWF Malaysia; Hidayah Hamzah, National Plastic Action Partnership (NPAP) Manager, WRI Indonesia; Annisa Paramita, Secretary-General, Indonesia Packaging Recovery Organization (IPRO); and Awadhesh Singh, Head of Technology Flexible Packaging, SEA-North Siegwerk.

“Through the implementation of EPR, companies can take responsibility for extending product life with an upstream to downstream approach. Ensuring EPR as a stable financing tool can improve waste management as well as recycling capacity. In this case, WWF supports collaboration on the design of the short, medium, and long term implementation of the product and packaging business system inclusion scheme, consumers, and relevant organizational alliances”, said Jazlyn Lee.

NPAP that was represented by Hidayah also stated that NPAP has launched the Behavior Change Roadmap through education to millennials, rural area communities, and businesses through social media, schools, facilitators, communities, and religious groups approaches to encourage changes in the perspective of people who are responsible for waste. Due to a lack of regulatory information, recycling facility infrastructure, and incentives, the public is unaware of the negative effects of plastic consumption.

Annisa from IPRO further added, to ensure the success of the circularity pilot project in Bali and East Java, IPRO implemented strategies to find a second life for plastic waste as a form of process, input, and output. IPRO distributes contributions from three aggregator member firms to guarantee that recycling is compliant, traceable, and putting a focus towards social, economic, and category balance, as well as providing intensification assistance.

Head of Technology Flexible Packaging, SEA-North Siegwerk, Awadhesh Singh said, Siegwerk is an enabler of safe and circular plastic systems. “We are trying to create circularity with Design 4 Recycle. We innovate closed-loop recycle plastic waste through high quality application of mono-layered plastic or single-use recycle, encouraging a de-inking system for plastic packaging, and packaging products that can be composted.”

The Indonesia Business Council for Sustainable Development (IBCSD), an association led by a CEO who shares a commitment to promoting sustainable development and a circular economy, has developed a Green Lifestyle program to facilitate an inclusive coordination process among various actors in accelerating collaborative business actions towards Sustainable Consumption and Production (SCP) in line with SDG 12. The Green Lifestyle Program has established a Plastic & Packaging Working Group that gathers all relevant stakeholders and promotes actions to realize SCP in the plastics and packaging industry. Through this webinar and future collaborations, it is hoped to encourage the implementation of Extended Producer Responsibility (EPR) to achieve the goals of SDG 12.

For further the webinar video, please access https://rebrand.ly/RPWM2021

To download the material, please go through https://rebrand.ly/MatRPWM2021

Sustaining SDG-Based Missions Through Weaving Community

Founded with three pillars to empower women, promote culture, and improve livelihood, Du Anyam started its work in East Flores otherwise known as the least developed parts of the country. During its growth, it also maintains the same principle in reaching out to different rural districts across Indonesia. These forgotten areas typically deal with high counts of mother and child mortality rate, malnutrition, along other complex economic issues.

It’s without saying that Du Anyam is compelled to take part in the SDG by taking the weaving community further into globalization through long-term social and business programs. Of the 17 goals listed in the Global SDG Programs, Du Anyam has been able to pinpoint the 4 most relevant ones which are to fight poverty, establish good health and well-being of the community, support gender equality, and strive for decent work, and economic growth.

The idea of eliminating poverty is one of the most successful goals by Du Anyam with an increase of over 40% income-generating weavers and counting. It’s notable that by providing work opportunities through authentic weaving products, these women are self-sufficient in the long term rather than a one-off financial program. The weavers also benefit from a supply chain system where Du Anyam positions itself as the off-takers, picking up goods rather than having the women deliver goods which saves delivery costs in their favour.

As for establishing good health and well-being of the community, Du Anyam has an ongoing Malnutrition Intervention Program which also touches on the root problem of healthcare issues. This program addresses the mindset of mothers through a behavioural intervention approach.

The ongoing education revolves around the key facts such as the importance of nutrition in the 1000 days of life for their children, tapping into the nutrition of locally grown foods, cooking and preparing foods, nourishing themselves, and encouraging hygienic lifestyles – ultimately increasing the well-being of the community.

With women weavers as the arsenal of weaving businesses who constantly receive skills upgrades, Du Anyam is proud to be one of the faces for women empowerment as well as helping them boost their economic power. More regeneration programs are also in action where they

are learning weaving techniques as well as other soft managerial skills, including financial and digital literacy.

The SDG has kicked off an excellent map with feasible points for all development sectors. To take part as an IBCSD, Du Anyam is committed to hitting more of the existing points and implementing them as an integral part of the business. With the firm foundation of social values, Du Anyam is set to improve its business blueprint where SDG goals will merge into it naturally and effortlessly.

GRASP 2030: Welcome on Board

Indah Budiani, Executive Director of IBCSD, stated in her opening remarks the current goal of COP26 is to assure the successful and impactful accomplishment of net-zero emissions through several initiatives and investment funds, which GRASP 2030 contributes. This is in line with the UN Food System Summit’s fives areas of action which aimed to accelerate the accomplishment of SDGs. Meanwhile, in the action tracks number 1 of the UN Food System Summit, Nourish All People, the action is not only focused on providing inexpensive and safe food but also on reducing food waste and loss. Therefore, IBCSD appreciates the signatories’ commitments who have joined GRASP 2030 and strives to facilitate all signatories with experienced practitioners to be able to implement their actions through the initial phase of GRASP 2030.

 

During the session, Michael Jones, International Partnership Manager WRAP, and Bryan Citrasena, Project Manager GRASP 2030 explained about GRASP 2030 Governance, reviewing the Voluntary Agreement model where the signatories were involved in several working groups with the same views on the objectives, activities, resources, and time to achieve the Target-Measure-Act approach and form a collaboration between signatories in the FLW reduction project. With the working groups, the signatories will be more focused on adopting and implementing their FLW action plan and make the most contribution to the initiatives that will be carried out. From this session the signatories are expected to have more understanding for the next steps, starting from the governance of the program, the establishment of a team, and the principle of Target-Measure-Act to deliver their commitment in reducing FLW through GRASP 2030.

 

Since its launch on September 8, 2021, the number of GRASP signatories has increased to 14 participants, including the Core Signatories; PT East West Seed, PT Multi Bintang Indonesia, Nutrifood, Sintesa Group, PT Kalbe Nutritionals, and Superindo. Meanwhile, Associate Signatories consist of Catalyze, Foodcycle, Waste4Change, Surplus, WRI Indonesia, Laskar Bumi Pertiwi, Srikandi Harmoni Bumi and Indonesia Food and Beverage Executive Association (IFBEC).

 

The second Onboarding Session will be held on the 23rd November for the Core Signatories and 24th November for the Associate Signatories. This next session aims to identify what Signatories can contribute to GRASP 2030 objectives and what support is available from GRASP 2030.

 

CEO Forum Called the Human RIght Due Diligence Implementation as Responsible Business during in COVID-19 Pandemic

The event was opened by Arsjad Rasjid, Chairman of Indonesian Chambers of Commerce and Industry (KADIN), H.E. Yasonna H. Laoly, Minister of Law and Human Rights,  Vincent Piket, EU Ambassador of Indonesia and Brunei, and Sophie Kemkhadze, Deputy Resident Representative UNDP Indonesia.

In the opening remarks, Sophie Kemkhadze, Deputy Resident Representative UNDP Indonesia stated that 7.5 million Indonesians lost their jobs. It was devastating but we all need to focus on the opportunity to take a chance to rebuild our economy by creating more jobs and protecting human rights as a responsible business. Arsjad Rasjid, Chairman of KADIN also stated KADIN as the organization for all industry plays an active role in helping the government by carrying out the battle of social, economic, and health by having a CEO Forum discussion to explore the impact of the increasing momentum of the business and human rights narrative on business finance strategy and practice.

H.E. Yasonna H. Laoly, Minister of Law and Human Rights conveyed that the human rights principle during a pandemic is crucial and should be prioritized by businesses. The companies can refer to United Nations Guiding Principles on Business and Human Rights (UNGPs) which describe the role and responsibilities for state and companies normative frameworks and implementation procedures.  Vincent Piket, EU Ambassador of Indonesia and Brunei also agreed with Yasonna’s remarks. He added every stakeholder in the country has to collaborate and support each other to face the pandemic and build new resilience.

Later on the event, Livio Sarandrea, Business and Human Rights Advisor UNDP; Yono Reksoprodjo, Vice President of Corporate Affairs Sintesa Group; Anne Patricia Sutanto, Vice CEO PT Pan Brothers, Tbk, Sera Noviany Sustainability Manager APP Sinarmas, and Evie Yulin, President Director PT Merck, Tbk were joined on the panel discussions on human rights due diligence practices within the Indonesia business.

Livio reflects the growth of responsible business globally in Asia and grew very fast in the 5 years as well as Indonesia. It was shown by the involvement and knowledge of CEO’s in human rights as business actors. UNGP now are helping Indonesian companies to enlarge what they understand about humans right to the next step of implementation on the business thought capacity building training.

As IBCSD members are concerned, Sintesa Group addresses human rights as a benefit to achieving SDGs. While PAN Brother conducts HRDD by valuing humanity based on i-PAN and Pancasila. As well as APP Sinar Mas respects human rights through Sustainability Roadmap Vision, Forest Conservation Policy on Social Commitment, Employee Welfare, and Business Code and Conduct. Merck identified the priorities towards access to health, community, product stewardship, security, and workplace as the principle of HRDD processes. One of the common challenges in implementing HRDD in business was to have the same understanding and awareness.

At the end of the panel session, the business agreed that companies in Indonesia are open to mandatory or voluntary basis regulations for implementing HRDD. However, the business expects collaboration with the government to achieve stakeholder readiness in implementing regulations through policymaker engagement, private sector discussions, partnerships, socialization, and clarity of detailed guidelines in order to have the same understanding of the impact on the business and society.

Rewatch the Forum on https://rebrand.ly/CEOForum8Sept21

 

 

 

Human Right Due Diligence Training for Business in Indonesia

In Indonesia, UNDP supports the United Nations Guiding Principles on Business Human Rights (UNGPs) is done inclusively and based on international standards. UNGPs use HRDD to help businesses assess and mitigate threats to the lives and dignity of stakeholders, including employees, vulnerable groups, communities, and consumers. Even though conducting HRDD does not have a direct impact on profitability. It would help companies avoid reputational and operational harm that might, for example, accompany charges of forced labor. 

As the commitment to leverage the knowledge, understanding, and practical skills of human rights due diligence, UNDP and IBCSD had collaborated to host a series of Training on Human Rights Due Diligence for Business in Indonesia virtually on 21, 23, 27, and 29 September 2021. The training was attended by more than 31participants and opened by Elim Sritaba, Chief Sustainability Officer Asia Pulp & Paper represents the Executive Committee of IBCSD; Siprianus Bate Soro, Team Leader of Democratic Governance and Poverty Reduction, UNDP Indonesia; and Sean Less, Business and Human Rights Specialist, UNDP Asia Pacific.

Many speakers from the Raoul Wallenberg Institute (RWI), UNDP, UNICEF, ILO, Komnas HAM, and ELSAM lectured during the training. The training began with an overview of business and human rights, followed by discussions of business duties in human rights policy, human rights due diligence (introduction, identification, and evaluation), and corporate integration, monitoring impacts, and communicating reports on measures taken.

Ensuring that human rights in business operations are protected, respected, and promoted is a shared responsibility of governments, businesses, and organizations.

 

 

 

Sustainability Talk: Improving Sustainable Business Practices on Learning from the COVID-19 Pandemic

Oke Nurwan, Director General of Domestic Trade, Ministry of Trade, also conveyed that the COVID-19 pandemic had an impact on changes in the trade. In maintaining the sustainable industry, Oke said that 9 things are the focus in the Sustainable Consumption and Production (SCP) framework. The regulations for implementing industrial sustainability have been translated into various regulations by the Ministry and the Regional Regulations. But the next question is, can Indonesia commit to SDG 2030 from the Covid-19 pandemic?

Arief Susanto – Head of Sustainability Program & Impact / Social Contribution, the Association of Indonesian Food and Beverage Entrepreneurs (GAPMMI) said that during the pandemic the food and beverage industry is no longer only concerned with food availability and food security, but also natural resources and resilience. For this reason, the food and beverage industry has a role to help the community become a top priority. The best effort is how the community is still able to buy their needs (affordability), have easy access (accessibility), and fulfill their nutritional and nutritional needs.

In the sharing session, Debasmita Kumar, Sustainability Strategy, Accenture Development Partnerships explained that despite the pandemic, global demand for palm oil continues to increase, raising concerns about the negative impact on Southeast Asia. This is because the current trend in the palm oil industry has led to the 100% RSPO-CSPO’s commitment. Unfortunately, however, less than 25% of palm oil companies in Asia are RSPO certified.

The panel discussion discussing palm oil products and sustainable sourcing presented various perspectives from resource persons attended by Emil Satria, Director of Forest and Plantation Products Industry, Ministry of Industry; Ribut Triwanti, Deputy Head of Sustainability Program & Impact/Social Contribution, GAPMMI; Ali, Triambodo, RSPO Management Representative, PT Wahana Citra Nabati; Arya Kusumo, Sustainability Department Head, PT Lion Super Indo; Kharisma Fitriasari, Head of Corporate Communications, PT Mondelez Indonesia; Joko Sarjito, Sustainable Commodities Program Manager, WWF Indonesia Foundation and moderated by Risyika Putri Istanti, Deputy Head of the Lingkar Temu Kabupaten Lestari Program.

To encourage increased absorption of sustainable palm oil in Indonesia, Emil Satria said that the government has designed ISPO (Indonesian Sustainable Palm Oil) regulations for the management system of oil palm plantations from upstream to downstream, issuance of progressive levy tariff policies, harmonization of export customs and incentives for R&D and other activities. vocation. In a state of the COVID-19 pandemic, the Ministry of Industry issued a Mobility and Industrial Activity Operational Permit (IOMKI).

The palm oil industry sector both upstream and downstream has remained high-performing during this pandemic. In the upstream sector, the price of CPO which tends to be high from the beginning of the pandemic until now has been able to become the mainstay of creating the welfare of the oil palm farming community, especially in the 3Ts (Outermost, Innermost and Disadvantaged). Meanwhile, in the downstream sector, the supply capacity of the oleochemical industry has a high enough demand for the domestic and export markets.

Later in the session, Ali Triambodo and Arya Kusumo shared success stories of collaboration between upstream and downstream companies in realizing sustainability in the palm oil industry. PT Wahana Citra Nabati and Superindo made an action plan for sustainable palm oil which strives to provide healthier choices for customers. These two companies carry out an education campaign on sustainable product awareness by releasing a collaboration product of palm cooking oil with the RSPO label code. While Kharisma Fitriasari also shared the commitment of PT Mondelez Indonesia in the use of palm oil with the “Palm Oil Action Plan” and Traceability. Where Mondelez uses RSPO certified palm oil suppliers.

WWF Indonesia strives to help companies by assisting, enlightenment so that they can meet sustainability and traceability standards both downstream and upstream. In addition, WWF Indonesia also encourages companies that already commit to sustainability, provide education to their consumers.

Ribut Triwanti stated that GAPMMI has encouraged its members to practice sustainability. This is a challenge because as an association, GAPMMI must be able to provide knowledge and awareness of the extent to which members understand and desire to redesign business strategies towards sustainable practices. Because implementing sustainability is not easy and cheap. Requires time and resources, government support in implementation as well as assistance and monitoring.

From this panel discussion, the speakers called to action through 4K (Komitmen, Kiat, Kolaborasi dan Kontribusi). Strong commitment from the regulatory side. Tips for real action that are innovative and creative in turning challenges into opportunities. Collaboration and Contribution of all parties to achieve sustainable consumption and production practices.