Members of the Indonesia Business Council for Sustainable Development (IBCSD) and the Indonesia Chambers of Commerce and Industry (KADIN Indonesia) are organizing the Indonesia Vision 2050 project to develop a business view of a sustainable and sustaining civilization by 2050; which aims to tackle the harder challenges of laying out actions that must be taken, starting now, to make that vision a reality. The members are launching the project amidst dramatic evidence “business as usual” is no longer an option in the face of a climate changing more rapidly than predicted, declining key ecosystem services, food and energy insecurity for many, and a financial crisis sparked mainly by short-term thinking and poor governance.
Can robust ecosystems and the services they provide to human civilization co-exist with 21st century global capitalism? Can the same capitalism help bring millions out of poverty while providing jobs for the growing young population of the developing nation such as Indonesia, and ample resources for the aging population in many of the industrial sector? Such questions would have seemed melodramatic a decade ago. Yet that was before the Millennium Ecosystem Assessment (MEA) found that two-thirds of ecosystem services are being degraded or used unsustainably. Two of more significant such services are predictable climate and fresh water; services that appear to be most dramatically affected.
The MEA reports argue that such damage and increase in poverty could accelerate during the first part of this century, but offer the hope “reversing the degradation of ecosystems while meeting increasing demands for their services can be partially met under some scenarios that the MEA has considered, but these involve significant changes in policies, institutions, and practices that are not currently under way.” What would such changes mean for business? More importantly, what vision of the business role in society would allow companies to lead in those changes in policies, institutions and practices required.
The Business Need and Opportunity
Indonesia is the largest economy in Southeast Asia and world’s fourth most populous country with over 240 million inhabitant, which live across the archipelago region consisting of 17,500 islands. The country is a bridge for the two continents of Asia and Australia, allowing this strategic position to influence the country’s economy with abundant potential of natural resources. Having said that, Indonesia represents a great opportunity to both domestic demand as well as to the global market demand. In addition, the consumption pattern is expected to grow due to natural increase population, locally and globally, and the significant increase of purchasing power in Indonesia because of the increase of middle class income population. The remaining natural resources contained in the stagnant area will soon lead us to the scarcity challenges for the raw material supply of the industry, amid the growing needs aligned with the rising population.
Following the global trends for sustaining the world in the long-run, Indonesia significantly and essentially has a motive to do the same action. The existing global consumption is estimated to require 2 to 3 planets to feed the people in the next 20 years. Furthermore, from the ecosystem perspective especially its unique biodiversity, Indonesia’s tropical forest is an integral part of the world’s climate and water systems that provide life support to the earth.
The key words for such actions are a holistic approach between consciousness of present planetary boundaries, visions of the future existence and innovation to overcome the possible challenges. Thus, sustainability will require new leadership skills and mindset in all development components, and solving sustainability challenges will require public and private sector collaboration. Many of Indonesia based companies have made tremendous progress in becoming more eco-efficient in terms of energy, water and resource use. Progress in eco-efficiency may have to give way to radical changes in business systems. This is the reason why innovation in policy making is urgently needed as much as the technology innovation itself.
The report will feature a set of agreed “must-haves” as well as the business potential that lies between challenges that may come. Process and formulation of the report will be conducted in two primary project phases with following outcome documents;
Phase One. The first phase will consist of 3 major documents consist of reports on (1) Business as Usual or megatrend report, (2) Indonesia Vision 2050, and the (3) Pathways to 2050 with detail
Phase Two. The following phase will consist of 2 major documents which are (4) the Action 2020 and the (5) Changing Pace. These two major goal will consist of more dynamic process such as collaboration, consultation, analysis and advocacy to various stakeholders of Indonesia Vision 2050.
The Indonesia Vision 2050 will be a result of a collaborative effort of IBCSD member companies and larger Indonesian private sector under the umbrella of Indonesia Chambers of Commerce and Industry (KADIN Indonesia). The report will also be a business response to the challenges Indonesia may face, and as a contribution that is intended to help shape the sustainability agenda, to catalyze actions and to provide relevant stakeholders with a platform to bring change. Above all, the document is expected to show that sustainability is becoming a key strategic driver for business. Thus, the Indonesia Vision 2050 will be a framework for :
- Identifying Megatrends - “business-as-usual”
- Identifying the gap between today and 2050
- Developing a Vision, pathway and areas of action
- Clarifying the business perspective
- Quantifying market potential and enabling factors
- Agreeing on action points and next steps
- Intense Advocacy to support business action
Features: Holistic Vision of 10 elements
Given the various potential sector in Indonesia, large size and important businesses, the power of significant productivity of natural resources, following are the possible elements proposed:
- Human Development and Society Development
- Energy & Power
- Tourism & Cultural Diversity
- Transport, ICT and Connectivity
- Resource Efficiency and Waste Management
The Indonesia Vision 2050 project is designed as a backcasting exercise which represent vital development agenda of Indonesia private sector. The research is to help Indonesia stakeholders, ensuring the readiness of business players toward national and global future challenges. Ultimately, the process of this project will provide a springboard dialogue and debate among Indonesia business players and key economic sector.