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”).

Indonesia’s palm oil industry has long played a pivotal role in the national economy, creating employment opportunities for millions and contributing significantly to non-oil and gas exports. However, the sector has faced mounting challenges concerning environmental offenses, deforestation, land exploitation, and high carbon emissions, resulting in negative campaigns that can impact both companies and financial institutions.

Yono Reksoprodjo, Executive Committee of IBCSD, stated, “Businesses in the palm oil sector are required to take real responsibility and accountability in sustainability practices, if they do not wish to be perceived as just greenwashing”.

The collaborative dialogue event aimed to achieve the following objectives: provide a forum to share challenges, best practices, and ideas to enhance the implementation of sustainable finance and investment in support of Indonesia’s competitive sustainable palm oil industry; increase awareness and knowledge on sustainability practices, fostering collaboration between financial institutions and upstream and downstream palm oil industries; and build networking and collaboration to increase the realization of sustainable finance and investment, promoting improved sustainability practices in Indonesia’s palm oil sector.

Moreover, the collaborative dialogue fostered improved networking and collaboration between public and private sectors, paving the way for more sustainable financing and investment in the palm oil sector. The event served as a catalyst for fostering stronger partnerships and alliances, uniting stakeholders in the pursuit of common sustainability goals.

“There are 3 challenges faced by the palm oil industry in terms of future growth prospects, and the first challenge comes in the form of finance,” said Henry Rialdi, Head of Department for Surveillance and Integrated Policy for Financial Services Sector, Indonesian Financial Services Authority (OJK). He continued, “Collaboration between parties involved in credit or financing schemes is required in accordance with the government agenda with adequate risk and mitigation with the focus on implementing sustainability principles, environmental, and governance aspects”.

As part of the event’s outcomes, participants identified key areas where enabling policies can support green financing and investment for Indonesia’s competitive and sustainable palm oil industry. By providing input and insights, the stakeholders laid the groundwork for potential policy changes that can further promote and incentivize sustainable practices in the sector.

Looking ahead, the positive momentum generated by the collaborative dialogue event is set to continue, with ongoing efforts by the participating organizations to work hand in hand with financial institutions and the palm oil industry. By aligning interests and fostering sustainability at every level, Indonesia’s palm oil sector can tap into green investment opportunities worth billions of dollars and secure a thriving and environmentally responsible future.

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.

During the event on 24 July 2023, which took place in Medan and was attended by businesses, including in the North Sumatra region, Deputy Chairperson for Maritime Affairs, Investment and Foreign Affairs of Kadin Indonesia and IBCSD Honorary Trustee, Shinta Widjaja Kamdani, explained the important role of the private sector and industry in accelerating the reduction of carbon emissions. Through this network and forum, Kadin NZH seeks to engage as many companies as possible that have not yet made the transformation towards awareness of the importance of reducing carbon emissions.

Shinta said that the transition to a green economy is one of Indonesia’s strategies to achieve the country’s vision as a developed nation by 2045. She emphasized the importance of collaboration from all parties, including the business and industry sectors, to support Indonesia’s commitment to achieve net zero emissions by 2060 or even sooner.

A study by the Ministry of National Development Planning of the Republic of Indonesia/National Development Planning Agency (PPN/Bappenas) showed that the implementation of low-carbon development policies has the potential to reduce economic losses due to climate change by 50.4% by 2024. With the efforts made, Indonesia managed to reduce 54.8 million tons of CO2e in 2019 and has now committed to reduce carbon emissions by 31.89% with its own efforts and 43.20% with international assistance by 2030.

Chairman of Kadin Net Zero Hub, Dharsono Hartono, emphasized that Kadin NZH is a platform for the private sector to participate in carbon emission reduction. Through knowledge and information exchange and resource sharing, Kadin NZH strives to realize a low emission ecosystem in Indonesia.

IBCSD fully supports the collective efforts in transitioning to a low emission economy and building an ecosystem that supports the achievement of the national Net Zero Emission target. To date, around 70 companies and institutions have committed to the Kadin NZH ecosystem, with 40 of them having joined the GHG accounting bootcamp to start calculating their emissions, while 30 others are involved in the Corporate Assistance Program (CAP).

The contemporary world confronts three critical global challenges: the climate emergency, loss of nature, and widening inequality. As per the UN World Population Prospects 2022, the global population is projected to reach 8 billion by 2022, surging to 8.5 billion by 2030, and 9.7 billion by 2050. These pressing issues demand urgent action to safeguard the planet, its precious resources, and the well-being of people worldwide.

President of IBCSD, Lilik Unggul Raharjo, in his opening remarks mentioned, “Unfortunately, now our world is not in a good shape; climate crisis, loss of nature, and mounting inequality, and all eyes are on the private sector. Through the implementation of ESG, now is the time the business sector shows that business can bring solutions and part of solutions”. 

To add to that, in his opening remarks, Joe Phelan, Executive Director of WBCSD Asia Pacific said, “The world is pushing business to change, to be clear that businesses are working towards and have plans to become net-zero, nature positive, and contributing to greater equality.”

In recent times, a growing awareness has emerged among businesses and investors regarding the significance of sustainable and responsible corporate conduct. The adoption of ESG practices has become paramount, not only to identify and mitigate potential risks but also to create enduring value and enhance reputation and competitiveness.

Presented virtually as the keynote speaker, Dida Gardera, Special Staff for Connectivity, Service Development and Natural Resources, Coordinating Ministry for Economic Affairs. He said, “Embracing the green and blue economy is essential with integrated approaches that consider environmental, social, and economic aspects. Policy makers should prioritize sustainability, together with the private sector and other stakeholders as the engine (of the transformation).” 

However, implementing ESG practices in Indonesia presents distinctive challenges. The nation not only faces climate-related risks but also confronts the peril of biodiversity loss, which can significantly impact the global economy and livelihoods. In response to these challenges, IBCSD and the WBCSD Asia Pacific Region orchestrated a panel discussion to facilitate the exchange of knowledge, experiences, and best practices for advancing sustainability in Indonesia’s business landscape.

The event featured an esteemed lineup of speakers, representing prominent experts and leaders from various industries, who provided invaluable insights on Environmental, Social, and Governance (ESG) practices. The distinguished speakers and moderators at the panel discussion included Celine Le Goazigo, Senior Manager of Energy WBCSD; Irene Martinetti, Manager of Circular Economy WBCSD; Marcus Burke, Manager of Equity Action WBCSD; Chakapong Yingwattanathaworn, CEO PT SCG Indonesia; Dharsono Hartono, CEO PT Rimba Makmur Utama; Suparam Bayu Aji, Head of Communication PT Vale Indonesia; Nadine Zamira Syarief, Sustainability and ESG Manager APRIL Group; Firmans Nur Gafi, Head of Public Segment Signify Indonesia; Oepoyo Prakoso, Corporate Environment & Sustainability Head PT Solusi Bangun Indonesia; Firman Dharmawan, Senior Manager Corporate Sustainability & Risks Management PT Medco Energi Internasional Tbk; Maria Dian Nurani, ISSP General Secretary; and Retno Ayudiati, Sustainability Lead PT HM Sampoerna.

The panelists brought a wealth of expertise related to ESG, with a specific focus on net zero commitment and accountability framework, unlocking circular potential for creating a minimum environmental footprint while building future-proof businesses, and managing social performance through addressing inequality.

Throughout the event, these thought leaders engaged in insightful discussions, sharing their experiences, and highlighting best practices to address pressing global challenges such as the climate emergency, loss of nature, and growing inequality. They emphasized the significance of adopting sustainable and responsible corporate practices in Indonesia, considering the unique environmental and social risks the country faces.

The focal points of the panel discussion comprised accountability in achieving net-zero commitments, fostering a circular economy, and addressing inequality. Through engaging discussions and the sharing of insights, participants had the opportunity to gain a deeper comprehension of the urgency for transformative changes in existing systems. By surpassing minimal regulatory requirements, businesses can forge long-term value and sustainability based on novel premises and sources of value.

The primary objective of this panel discussion was to foster collaboration among attendees and promote the successful implementation of ESG practices in Indonesia, leading to sustainable businesses that effectively address global challenges. Business leaders, sustainability professionals, and stakeholders were invited to partake in this enriching and thought-provoking event.

In her closing remarks, Shinta Kamdani, IBCSD Honorary Trustee said, “The discussion that we have today hopefully can remind us again, how we should keep moving onward towards a sustainable future”. Shinta concluded the importance for business leaders to implement ESG. “…and I believe, IBCSD, with its network, still can be your resource and support for you in striving to implement your ESG commitment and reach your sustainability goals,” she continued.

The chairman of ASI, who also is the President of IBCSD, Lilik Unggul Raharjo, delivered welcoming remarks and set the context. He said, “It is important to set decarbonization actions as a form of responsibility to the environment. The cement industry has a different challenge in committing to climate neutral initiatives, conducting innovative production to provide sustainable solutions, and implementing a circular economy.”

Distinguished speakers at the event included Mr. Herman Supriadi, Head of the Green Industry Center of the Ministry of Industry; Mr. Octavianus Bramantya, General Manager of KADIN Net Zero Hub; and Mr. Oepoyo Prakoso, Head of Corporate Environment & Sustainability at PT Solusi Bangun Indonesia. Also taking part in the discussion was Mrs. Wiwik Pudjiastuti, Director of the Cement, Ceramics and Non-Metallic Mineral Processing Industry at the Ministry of Industry.  

The forum addressed the significant contribution of the cement industry to global emissions. Cement production, responsible for approximately 8% of global CO2 emissions in 2019 according to the International Energy Agency (IEA), stands as one of the largest greenhouse gas (GHG) emitting industries worldwide. In response to this challenge, the Ministry of Industry set a Green Industry Standard for cement in 2018, and the cement industry is expected to reduce emissions by 2.75 Mton CO2 to 3.25 Mton CO2 based on the Enhanced Nationally Determined Contribution (ENDC) document. The Ministry of Industry supports the industry in creating a roadmap for reducing carbon emissions to achieve the set targets.

“Business today invests through Green Industry Standard in order to mitigate climate change while increasing competitiveness as a true industrial character. In addition, it can create green job opportunities and improve environmental quality and biodiversity,” said Herman Supriadi.

“We hope that in the future there will be performance-based cement standards and incentives for the cement industry, so that the industry can develop a roadmap for long-term decarbonization initiatives, align with the decarbonization strategy of the cement association so that it can go hand in hand to reduce CO2,” said Oepoyo Prakoso. 

Aligned with global efforts to achieve net-zero emissions by 2050 and Indonesia’s commitment to carbon neutrality by 2060, IBCSD actively promotes leadership and collective action in the business sector towards a low-carbon economy through its platform, the Kadin Net Zero Hub (KADIN NZH). The KADIN NZH aims to assist Indonesian companies in their transition towards net-zero emissions.

“The industry can’t stop growing in terms of finance and production, but we must also realize that the dynamics of this climate are becoming more pronounced. If we don’t keep up with this, we will be the ones left behind,” said Octavianus Bramantya.

The forum aimed to foster knowledge sharing and collaboration among cement industry stakeholders in addressing climate change through emission reduction and achieving net-zero goals. It emphasized the importance of networking and working in synergy with government initiatives to ensure effective planning, implementation, and reporting of emission reduction actions. Additionally, the forum aimed to provide insights into the Indonesian government’s strategy and roadmap for decarbonizing the industrial sector, focusing specifically on the cement industry.

“Immediate implementation of the cement industry roadmap is crucial, followed by a discussion on the timeline. A synergy is a must here,” said Wiwik Pudjiastuti.

The focused discussion event provided a platform for stakeholders to collaborate and accelerate efforts towards a sustainable and decarbonized cement industry while contributing to Indonesia’s net-zero targets. Through knowledge sharing and collaboration, participants aimed to lay the groundwork for a science-based national industry decarbonization roadmap.

For more information on the KADIN Net Zero Hub and future initiatives of IBCSD, please visit www.ibcsd.or.id.

Contact:
Name : Nurina Izazi

decarbonize industrial processes and expand renewable energy sources, driving the importance of corporate involvement in this transition.

Recognizing the global business community’s commitment to achieving net-zero emissions by 2050, IBCSD, in collaboration with Kadin Indonesia and other partners, established the KADIN Net Zero Hub (KADIN NZH). This groundbreaking platform aims to support Indonesian companies on their journey towards achieving net-zero emissions.

The event featured prominent speakers who shared their insights and best practices on achieving net-zero emissions. Among the lineup of speakers were Dr. Edi Purwanto, STP, M.M., Deputy Chairman of the Kadin East Java for Agriculture and Food; Diah Sulung Syafitri from Kadin Net Zero Hub secretariat; and Minarto Basuki, Director of PT Pakuwon Jati Tbk.

The impact of climate change is real and experienced today. Edi Purwanto said, “The climate crisis is occurring and getting more worrying, therefore it is considered important to limit the temperature rise to 1.5°C. Of course, a joint contribution is needed to achieve this goal.”

Furthermore, the talk show emphasized the urgency of collaboration and collective action in combating climate change. The event serves as a reminder that the transition to a net-zero economy requires the combined efforts of businesses and other stakeholders. “Businesses will soon be subject to a carbon tax, which needs to be immediately anticipated. For this reason, Kadin Indonesia initiated the KADIN NZH as a forum for companies that want to start their net-zero journey,” said Diah Sulung Syafitri.

Companies and industry experts have seen the threat of the climate crisis and therefore many have set targets to reduce their emissions like PT Pakuwon Jati, Tbk, the leading developer group in Indonesia. Minarto Basuki said, “We aimed to fulfill our commitment to net-zero through our membership in KADIN NZH. As a Public Company, our investors started demanding emission reporting through CDP, so it became our obligation to comply. KADIN NZH partners helped us adopt a more systematic approach to reducing our carbon footprint.”

“Net Zero Emissions: Strengthening Corporate Decarbonization Journey” is a significant step forward in raising awareness and fostering a sense of responsibility amongst Indonesian companies in their journey towards net-zero emissions. Through the KADIN Net Zero Hub, the Indonesian business community can collaborate and drive sustainable change, contributing to a greener and more resilient future.

For more information on the KADIN Net Zero Hub and future initiatives of IBCSD, please visit www.ibcsd.or.id.

Contact:
Name : Nurina Izazi
Title : Communication and Member Relations Manager
Phone : 0813 3261 4268
Email : [email protected] 

Food loss and waste pose a substantial challenge to Indonesia’s national food security and contribute significantly to the nation’s greenhouse gas emissions. The Ministry of Environment and Forestry (MoEF) of the Republic of Indonesia reported that an alarming 44% of waste generated in Indonesia in 2018 was food waste. To address this pressing concern, it is crucial to focus on consumer behaviors related to food consumption, as numerous studies have highlighted significant food waste at the household level.

The Consumindful initiative was conceived with the motto “Eat Wiser, No Leftover” to tackle food waste at its root cause – consumer behavior. By encouraging consumers to be mindful of their food choices and consumption practices, the initiative aims to contribute to achieving SDG 12: Responsible Consumption and Production.

During the workshop, IBCSD presented the current state of the Consumindful initiative and shared their preliminary findings. These findings shed light on consumer behaviors and attitudes towards food consumption, providing valuable insights into the factors influencing food waste at the household level. Understanding these behaviors is essential in formulating targeted strategies to reduce food waste and promote responsible consumption.

Through collaborative discussions and data sharing, the workshop aims to identify the key drivers behind food waste at the household level in Indonesia. By analyzing these drivers, policymakers and stakeholders can gain a deeper understanding of the challenges faced by consumers in preventing food waste. This knowledge can pave the way for the development of effective interventions and solutions that address these specific issues.

The workshop intends to offer strategic inputs to the Government of Indonesia based on the preliminary findings and discussions. These insights will support policymakers in crafting evidence-based strategies to improve consumer behaviors towards food consumption. By collaborating with key stakeholders, the government can develop comprehensive and targeted initiatives that encourage responsible food choices, minimize waste, and contribute to Indonesia’s climate targets and SDG 12.

The workshop showcased the progress of the Consumindful initiative and presented valuable preliminary insights into consumer behaviors surrounding food consumption. With a focus on reducing food waste at the household level, the workshop’s findings will provide strategic inputs for the Government of Indonesia to enhance consumer behaviors and contribute to Indonesia’s climate targets and SDG 12.

Additionally, the workshop’s outcomes will significantly benefit the Strategic Sector Cooperation on Food Loss and Waste Indonesia-Denmark development, promoting knowledge exchange and cooperation between the two nations in their shared journey towards a more sustainable future.