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.

Redefining Social Entrepreneurship The Du Anyam Way

Through their observation a year prior, the three co-founders were able to highlight several critical issues, such as malnourished mothers, lack of income/cash access, low education level, lack of infrastructures, and more. Realizing that donation programs may only work temporarily in resolving the issues, Du Anyam then turned to the two most powerful resources available: the fact that the majority of the women can weave and the abundance of local natural resources.

Under the Du Anyam flag, a fusion of “Du’a” and “Menganyam” which translates to “The Weaving Mothers” in Sikka, Maumere local tongue, production soon began after a series of orientation, introduction and training was implemented. The initiative prioritized empowering young and pregnant mothers to be self-sufficient, but also gained support from all-age local women, including female farmers and senior local citizens.

Merging modern urban design in the form of unique traditional weaving is proven to be a successful strategy in answering the demand for unique corporate souvenirs, useful gift products and creative handmade items. By 2015, Du Anyam had steadily expanded to other districts in East Flores, broadened the reach to Papua in 2017 and recently to South Kalimantan in 2020. Along the way, Du Anyam has been able to recruit more women weavers while establishing various social programs from financial literacy, nutrition supplement program, scholarships, provisions of infrastructures and public facilities, to production and managerial skills training.

Today, Du Anyam has recorded a total of over 1400 women weavers across 54 villages in 3 provinces in Indonesia. It’s been able to offer exclusive Indonesian made corporate gifts with personalized logos for local businesses, while also exporting traditional handwoven products to the USA, Europe, Australia and Japan. Having gained multiple insights & experiences by active participation in international crafts events, it’s no wonder that Du Anyam was given the honor as the official merchandiser of Asian Games 2018.

Dubbed as the social entrepreneur business brand with winning stories, Du Anyam constantly returns to its three core pillars, i.e. to empower women, promote culture and improve livelihood. By focusing on the social impact which is generating income, educating the local community and the market, as well as long-term social programs, Du Anyam has been able to redefine social entrepreneurship with a sustainable model.

By building their business foundation on creating long lasting social impacts, Du Anyam has been able to find a way to promote and reward work of marginalized women through fair trade,

at the same time preserve the vanishing weaving culture. Du Anyam’s work is also heavily centralized on environment-friendly methods, using all natural materials with eco-friendly production systems and taking part in the government peatland preservation project.

In its stride, Du Anyam maintains to uphold their business pillars and use social impacts as the benchmarks of business success. The three female founders believe that the work is far from done as more initiatives for female empowerment are currently being geared up. The goal remains from day one: to deliver benefits that empower the lives of women in rural and hidden villages all across Indonesia.

GRASP 2030 (Gotong Royong Atasi Susut & Limbah Pangan di 2030)

The GRASP 2030, which generously funded by P4G (Partnering for Green Growth and the Global Goals 2030), is built based on evident success of what has been done by WRAP (Waste & Resources Action Programme), IBCSD’s partner in developing GRASP 2030

The launch event was inaugurated by Dr. Arifin Rudiyanto as Deputy for Maritime Affairs and Natural Resources of the Ministry of National Development Planning/BAPPENAS and also attended by Ian De Cruz, Director of P4G Global and Lars Bo Larsen, Ambassador of Denmark to Indonesia.

From Ian de Cruz’s explanation, it was found that there is a US$2.5 trillion financing gap needed by developing countries to implement the SDGs. The gap will be filled if the private sector and investors can work together to find a solution. “What we are doing with GRASP 2030 is a Target, Measure, Act, Invest approach. This is in line with Indonesia’s commitment and national strategy to achieve the goals of the Low Carbon Development Initiative.” he added.

Danish Ambassador, Lars Bo Larsen in his speech explained, “When we talk about the food value chain, from production to consumption, I think it is important for Indonesia to identify different strategies at all levels. The challenge for every country is that we have different targets and actors at different levels.”

In addition, in the virtual launch event held on Wednesday 8 September 2021, entitled “Reinforce Food Loss and Waste Partnership Actions through GRASP 2030”, several representatives of companies that have joined GRASP 2030 were present, including Afrizal Gindow, Deputy Managing Director of East West Seed Indonesia; Ika Noviera, Head of Corporate Affairs of PT Multi Bintang Indonesia; Angelique Dewi, Head of Corporate Communication at Nutrifood; Anissa Ratna Putri, Consulting Manager of Waste4Change; and M. Agung Saputra, Managing Director of Surplus Indonesia.

Rows of other panelists from government agencies who also support this program, among others, Dr. Andriko Noto Susanto, Head of the Center for Food Availability and Reserves of the Food Security Agency; Novrizal Tahar, Director of Waste Management at the Ministry of Environment and Forestry; Andriati Cahyaningsih, Policy Analyst for the Green Industry Center of the Ministry of Industry; Putu Juli Ardika, Expert Advisor to the Minister of Industry, Strengthening and Disseminating Industry at the Ministry of Industry, and Anang Noegroho, Director of Food and Agriculture at BAPPENAS.

Putu Juli Ardika, from Ministry of Industry, said that in terms of the processing and packaging industry, since 2000, food loss was recorded at around 4.17%, in 2011 it fell to 3.75%, and in 2019 it fell again to 3.26%. “We appreciate industry players participating together on how to reduce food loss and food waste. We think this effort will be quite successful,” he concluded.

In closing the event, Anang Noegroho emphasized that his party appreciated two things. The first is the tagline ‘Gotong Royong’ which is a form of social capital to build this nation in a better direction, building initiatives that are the original face of our nation. Second, the government really appreciates multi-stakeholder cooperation and does not forget about the inclusiveness and synergy of all parties.

As of the launch date, nine founding signatories of GRASP 2030 has joined, including East West Seed Indonesia, Multi Bintang Indonesia, Nutrifood, Kalbe Nutritionals, Sintesa Group, Waste4Change, Surplus Indonesia, WRI Indonesia, and PT Lion Super Indo. Through GRASP 2030, businesses can increase their capacity to manage food loss and waste, improve their reputation in terms of sustainability, gain more connections, and improve their business operation and potential benefit.

Febriany Eddy Appointed CEO of PT Vale Indonesia

Febriany has been with Vale for almost 14 years. She has nearly 22 years of international work experience in the financial and mining industry. She worked for PricewaterhouseCoopers in Jakarta and in Amsterdam, The Netherlands, for total of seven years. During that time, she was involved in various types of financial due diligence works and international projects.

She started her career with PT Vale as Manager of Capital Project Controls and Financial Evaluation. After three years in the role, she was assigned to the regional office of Vale Base Metals Asia Pacific and Africa based in Brisbane, Australia for 2.5 years. There, holder of Bachelor of Economics from the University of Indonesia and MBA from UCLA Anderson School of Management and National University of Singapore, was responsible for overseeing performance of Vale Base Metals units in Indonesia, Japan, China, Taiwan and Africa. Upon her return to Indonesia, she assumed responsibility as CFO of PT Vale from 2013 to 2018 and was Deputy CEO for two years, before the Top 25 Most Influential Women in Treasury in Asia Pacific (2015) finally being appointed as CEO.

Being a CEO in a company engaged in an industry with such a masculine image did not dampen Febriany’s spirit. She believes that diversity will bring change in a positive direction. Difference makes all the difference. This is in line with Vale’s target to be a “home” for all talents by embracing diversity, creating equality and building inclusiveness. Febriany, who was chosen as Asia’s Top Sustainability Superwomen 2019, is also active in voicing issues of diversity, inclusion, and sustainability, through various forums, such as Women in Mining & Energy (WIME), Indonesia Business Coalition for Women Empowerment (IBCWE), and currently serves as Vice Chairman of the Indonesia Business Council for Sustainable Development (IBCSD).

Source: Febriany Eddy officially becomes CEO of PT Vale Indonesia Tbk

 

 

Closed Door Meeting: Business Action in Food Loss & Waste

Other data from the UNEP Food Waste Index in 2021 shows that the amount of food waste globally reaches 931 million tons in 2019. Ironically, the Covid-19 pandemic has increased the number of malnutrition between 83-123 million people. And 6.7 million of them are children suffering from acute malnutrition.

On the other hand, the Indonesian government remains optimistic about reducing waste with a target of 30% and 70% by 2025, including food waste. In fact, reducing food waste is one of the priorities in the 2020-2024 RPJMN, as conveyed by representatives of Medrilzam, Director of the Environment, BAPPENAS. According to representatives of Anang Nugroho, Director of Food and Agriculture of BAPPENAS, in more detail, horticultural products, especially vegetables, are the largest contributor to food waste products in Indonesia, which must receive attention.

Seeing this, IBCSD together with WRAP introduced an initiative based on voluntary agreement, where businesses can participate in the commitment and start calculating and analyzing their respective food losses and losses. Indeed, one of the right solutions in dealing with the problem of food waste is to involve the business sector. Based on the presentation in the discussion entitled “Business Actions to Overcome Food Shrinkage and Food Waste in Indonesia” held by the Indonesia Business Council for Sustainable Development (IBCSD) on April 29, 2021, only 11.5% of food waste is produced in the consumption process in most developing countries. . Meanwhile, the production process contributed 23.5% of food loss and waste, then post-harvest storage contributed 24.4%, the manufacturing process 20.3%, and distribution 20.3%. This means that business has a very big role in dealing with this problem.

“IBCSD intends to introduce voluntary agreement-based initiatives to overcome the problem of food loss and waste in Indonesia. We believe that this issue has become the concern of many parties. So that this is not a reinventing the wheel program, but a support and enhancement of existing initiatives globally and nationally,” said Yono Reksoprodjo, Executive Committee of IBCSD.

Interestingly, mapping and reducing waste loss and waste in a business chain will not only benefit the environment and help achieve government targets. WRAP’s International Partnership Manager, Michael Jones, provides a clear example of how UK businesses implementing reduced food losses and waste at their company have succeeded in reducing previously invisible costs and providing significant benefits to the business. Another good news is that business people who are interested in this initiative can join the voluntary agreement initiated by IBCSD.