CRUCIAL ROLE OF PRIVATE INVESTMENT FOR POST COVID-19 ECONOMIC RECOVERY

“The number of unemployed has increased dramatically. Previously temporary business closures have become permanent closures. Restoring the economy to pre-Covid19 crisis can take years “, said the UN Secretary-General António Guterres at the virtual meeting of the Global Investor Alliance for Sustainable Development (GISD).This virtual meeting was held by the United Nations (6/10/2020) with leaders of leading financial institutions and businesses, who are committed to increasing sustainable investment globally, especially in countries that are most in need of the effects of the COVID-19 pandemic. Recovery of the world economy that was hit by the pandemic requires shared responsibility and global solidarity from businesses.
The Global Investor Alliance for Sustainable Development (GISD) is an alliance that is fronted by and consists of 30 business leaders from various parts of the world, including Indonesia. This is one of the concrete steps involved in restoring the post-pandemic world economic order. A joint effort is needed for a ‘green’ economic recovery with a focus on creating jobs and new businesses that are able to adapt and transform and adopt environmentally friendly principles to create sustainable and resilient growth. GISD works side by side in an effort to increase investment in sustainable development projects to build a stronger economy.
 
In response to the crisis caused by Covid-19, alliance members agreed in accelerating efforts to align investment with the goals of sustainable development and integrate SDGs into their business models. They are also committed to building innovative financing and investment platforms to advance Sustainable Development Goals through COVID-19 bonds, risk-sharing tools, joint investment and business matchmaking platforms for affected countries, including Indonesia.
 
Adding to this, Shinta Kamdani, a member of the GISD alliance representing Indonesia who is also the President of the Indonesian Business Council for Sustainable Development (IBCSD) stressed that with crisis comes an opportunity to improve the socio-economic order, including the development paradigm. “Economic recovery from COVID-19 will require sustained and resilient investment. Going forward, Sustainable Development Goals (SDGs) will be an important key to economic recovery, so the business sector must start integrating that value into their business models “. The Covid-19 pandemic has caused a deep social and economic crisis in Indonesia. As many as 3.05 million workers were affected by layoffs, and some business sectors experienced a significant performance decline. This pandemic proves that social and environmental aspects play an important role for economic activities.
 
Seeing this phenomenon, Shinta Kamdani who also holds the position of CEO of Sintesa Group has prepared a roadmap for the SDGs to be integrated in its business. Sintesa Group which is a strategic investment company in Indonesia focuses on 4 business pillars, namely property, energy, industrial products and consumer products, upholding the vision to become a Sustainable Excellence Company. “We use this pandemic for the transformation of Sintesa, one of which is through changes in business operations that will be directed to the lens of a circular economy, on the other hand we have also collaborated with several large companies in Indonesia to support the achievement of sustainable programs through providing access to social investment (impact funds ) for MSMEs that are in line with the focus of the SDGs “, Shinta said.

"Pursuing sustainable development makes companies more competitive, more resilient and adaptable in a fast-changing world, and more prepare for the future."