Volume XIII, March 2015
Indonesia Business Council for Sustainable Development
Improving Farmer’s Livelihood as Part of Monsanto’s Commitment to Sustainable Agriculture Editor in Chief Mauricio F Amore President Director – PT Branita Sandhini (Monsanto Indonesia)
Monsanto is a Sustainable Agriculture company, we believe improving agriculture improves lives; we’re devoted to support farmers around the world to produce more, conserve more and improve lives in order to nurture a growing population. We have presence in more than 60 countries around the globe offering advanced agricultural solutions in crops such as cotton, corn, canola, soybeans, alfalfa, sorghum and vegetables among others. Our advanced technologies include high-yielding conventional and biotech seeds, advanced traits and technologies that enable more nutritious and durable crops, and safe and effective crop protection solutions among others. In Indonesia, we not only support the governments’ objective on obtaining selfsufficiency in corn, but also believe in Indonesia becoming the source of corn for the Asia Pacific market becoming a net exporter in the near future. To pursue this vision, Monsanto Indonesia is actively participating within Indonesia’s PISAgro Initiative on Corn, working towards building a collaborative work environment with farmers, the Government of East Java, BRI, and Cargill Indonesia in order to have a complete value chain that supports these sustainability efforts. Through this initiative at Mojokerto, farmers were able to boost their productivity by increasing their production yields by 15% while increasing their income by USD$ 252/hectare and reducing overall crop inputs in a significant way. For Monsanto, it’s key to breed and produce high quality seeds for farmers, so they can enjoy a better future. Therefore Monsanto continuously invests in our corn production facility to ensure and maintain a full capacity of more than 14 thousand metric tons, with East Java as our main domestic corn production
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area. In supporting the development within this region, Monsanto has developed several community programs under the WASH (Water Access Sanitation & Hygiene) initiative in East Java and Lampung, and particularly in Mojokerto. Collaborating with our world class NGO partners, Habitat for Humanity, Monsanto conducted renovation of junior high schools buildings, clinics, and construction of clean toilets, as our appreciation to the local community so they can live a healthy, comfortable and prosperous life. With the same spirit, Monsanto develops a Sustainable Agriculture Landscape Partnership (SALP) with world class NGO Conservation International and the Pakpak Bharat regency in order to promote a healthy and sustainable economy by improving agricultural production, conserving biodiversity & natural resources, while enhancing farmer livelihoods in Pakpak Bharat, North Sumatera. With this effort Monsanto Indonesia has earned the Sustainable Business Award (SBA) for “Best Land Use, Biodiversity and Environment”. This prestigious award recognizes our leadership and commitment to sustainable agriculture in Indonesia while supporting the Governments’ agenda on Food Security. The passion, commitment, and all the efforts in implementing good business practices towards sustainability has also made Monsanto being recognized for its capacity in promoting the company with Green Industry practices in Green Industry Award 2014 from the Ministry of Industry Republic of Indonesia, and as the World’s Most Admired Companies by
Dear Readers, We are pleased to bring yov the 13th Edition of ovr Newsletter with the highlight on Food Secvrity. We haxe the CEO of Monsanto, who shares his xision towards svstainability on agricvltwre, we also gixe yov a glance abovt Jakarua Food Secvrity Svmmit and how IBCSD relates to the works, and also we haxe contribvtor from BSR who also works on food secvrity issve. Sexeral programs and exents of IBCSD and its member companies svch as on energy efficiency in bvilding and bvilding capacity for conflict resolvtion are also shown on this edition. Happy Reading! FORTUNE magazine (http:// fortune.com/worlds-most-admiredcompanies/monsanto-100000), and Monsanto has been named one of the World’s Best Multinational Workplaces by the Great Place to Work® Institute, ranking number No. 8 on the list of 25. The list is the world’s largest annual study of workplace excellence. For more info: www.monsanto.co.id
Welcoming New Member: Mondelez Indonesia
Welcoming New Member: Cargill Indonesia
Mondelez Indonesia is part of Mondelēz International, Inc. (NASDAQ: MDLZ); a global leader in chocolate, biscuit, gum, candy, coffee and powdered drink products. With around 2,600 employees and production facilities in Karawang, Cikarang and Bandung; Mondelez Indonesia has become part of the Indonesian people. Mondelēz Indonesia is proud to have global, iconic brands such as Oreo, Kraft Cheese, Cadbury Dairy Milk, and Toblerone; as well as Biskuat as its local innovative jewel brand. As the world’s largest chocolate company and second largest coffee company, Mondelēz is committed to contributing to society by investing in sustainable agriculture, eliminating waste, and promoting healthy lifestyles. Since October 2012, Cocoa Life and Coffee Made Happy initiatives have been started to build sustainable supplies and thriving communities in chocolate and coffee key countries, including Indonesia.
The company started its activities in Indonesia in 1974 by establishing a small feed mill in Bogor, West Java. Over the years the company enjoyed substantial growth, and now employ over 10,000 people. Headquartered in Jakarta, it has offices, manufacturing plants and facilities throughout Indonesia. The company’s expansive operations comprise sourcing, processing, handling, shipping and marketing of a wide range of agricultural, food and energy products and related services including Animal Nutrition, Cocoa, Grain & Oilseeds, Palm Oil, and Sugar. As a responsible corporate citizen of Indonesia, and help to address a range of economic, environmental and social challenges, the company focuses on implementing programs primarily in rural areas that foster responsible and sustainable development, help protect the environment, and nourishing the people and possibilities that reside in local communities.
Volume XIII, March 2015
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Event
Securing Food Resources in Jakarta Food Security Summit 2015 Jakarta - With approximately 250 million inhabitants, Indonesia is the world’s fourth most populous country, where according to the World Bank, 46% of Indonesians live on less than $2 per day, which describe the instability to provide daily needs, health and the good quality of life. It takes an act that food security is a real challenge faced for this nation. Seeing the continuous pressing issue of food sustainability, Indonesian Chamber Commerce and Industry (Kadin) organized the Jakarta Food Security Summit (JFSS), which is held on February 12 to February 13, 2015 at the Jakarta Convention Centre (JCC). This is the 3rd event which is conducted every 2 years since its inception in 2011. President Joko Widodo officially opened the summit. In his remarks, the President was confident that Indonesia would be able to handle food security within three to four years if multi-stakeholder work
together in achieving agricultural target. The summit included a series of seminars and food exhibitions. The event also followed by a panel discussion that focus on “The Development of Co-Operatives as a Key to Success in the Field of Agriculture, Farming, and Fisheries”, while on the second day focus on co-operatives funding in that three sectors (agriculture, farming, and fisheries). Being part of the food security issue, IBCSD is fostering private sector in food industry to be able to contribute in fulfilling food demand of Indonesia population through good business practices; such as sustainable agriculture, food product with better nutrition, resource efficiency, and technology enhancement.
In Action 2020, aware of the importance of food for our livelihood and the sustainability of the planet and mankind, IBCSD and other chapter of BCSDs in Southeast Asia have put Food in one of priority areas, where IBCSD has invited companies to share their best practices and contribute to the food security.
Champions of Sustainable Business Award 2014 Unilever among others. Several IBCSD member companies are the 2 consecutive year winner which are Monsanto, Great Giant Pineapple, Holcim, BNI, and Vale.
Jakarta, 26 February 2015 – The winners of the 2014 Sustainable Business Awards (SBA) Indonesia were announced yesterday evening at a ceremony held at the Shangri La Hotel Jakarta, attended by Vice President Jusuf Kalla, Minister of Trade Rachmat Gobel, as well as other government Ministers, CEOs, heads of international agencies and media. A Special Award for Leadership in Green Growth and Development was presented to former Indonesia President Susilo Bambang Yudhoyono for his achievements in developing green growth in Indonesia and his commitments to action on climate change globally. “I am humbled to receive this award and
encouraged to see that both Indonesian and multinational companies here are increasingly committed to more responsible and sustainable business practice. I urge all companies to work with government and civil society to do more”. The Sustainable Business Awards, organised in partnership with PricewaterhouseCoopers (PwC), Kadin and IBCSD, are given to companies that demonstrate a real commitment to sustainability. Holcim Indonesia was recognized as the Overall Winner, with awards also going to Bank BNI, Astra International, Bukit Asam, Nestle Indonesia, Bumi Serpong Damai and
Companies entering the awards completed a comprehensive questionnaire that included assessments of their sustainability vision, environmental performance and social impact initiatives. Applications were scored and assessed by PwC with final winners decided by an expert panel including former environment Minister Emil Salim, REDD+ agency head Kuntoro Mangkusubroto, Nyoman Iswarayoga, Director at WWF Indonesia and Shinta Kamdani, Vice Chair, Kadin. The Sustainable Business Awards began in 2012 in Indonesia and in 2015 will be held in Singapore, Philippines, Vietnam, Thailand and Malaysia. For detailed information on the Sustainable Business Awards, judging criteria and awards methodology, please go visit www.sustainablebusinessawards.com/
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Creating Roads that lead to Rome - the Role of Business in World Food Security Rosa Kusbiantoro, Manager, Advisory Services—BSR During the World Food Summit organized by the Food and Agriculture Organization of the United Nations (FAO) in 1996, member states pledged, in the Rome Declaration, to “reduce the number of undernourished people to half their present level no later than 2015.” This subsequently became the first of the eight Millennium Development Goals (MDGs) established by the UN in 2000 2015 has duly arrived, but unfortunately not the delivery of the promise. According to FAO, there are still 800 million people, equivalent to 11%1 of the world population, who are undernourished in 2014. This is an improvement from the figure of 1 billion in 1990. A bigger improvement can be seen for Indonesia, where the number of undernourished is reduced from 35.9 million in 1990 to 21.6 million in 2014, and as percentage of the population it has gone down from 19. 7% to 8.7%. But perhaps we could do more, especially in the light that more than 600 million people2 in the world are obese, coupled with the fact that over one third of food produced for human consumption every year is lost or wasted.3 Many think that the issue of “food security”- the assurance that people have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life- is so vast that it must be the responsibility of governments. But this is at best partially true. Certain causes of food insecurity are structural issues such as low incomes and underinvestment in agricultural infrastructure, or events such as natural disasters and wars, and these may be best dealt at the government level. However at times government policies related to food security may have contradictory effects. For example, there are concerns that the Indonesian government’s effort to achieve selfsufficiency in rice may cause the price to increase, leaving poor households less accessible to it. Furthermore, the Fifth Assessment Report from the Intergovernmental Panel on Climate Change published in 2014 by the
c l i m a t e change and its impact on agricultural production
United Nations Intergovernmental Panel on Climate Change (IPCC) revealed that climate-related impacts are already reducing crop yields in some parts of the world. Southeast Asia is expected to see decreases in agricultural productivity of 18–32% by 2080. Crops affected include staples important for Indonesia such as rice and wheat, with projected increases in price volatility and reduced food quality. Thus given the complex nature of the problem, efforts to bolster food security are most effective when they are multifaceted.5 There is a critical opportunity for the private sector to address this challenge. Some companies along the food and beverage value chains have already begun to support efforts to overcome economic and distributional barriers to food security. Examples include:
Unilever’s provision of access to finance and technical assistance for small farmers of soybeans in Indonesia, benefiting 5,000 farmers who now get a guaranteed market and receive 10-15% more for their crop by selling direct to Unilever, rather via traditional traders
Nestlé’s creation of rural cooperatives by supporting a large network of agronomists that work with smallholder farmers around the world
Joint program by Danone and the Grameen Bank to locally produce affordable yogurt in Bangladesh In general, there are many ways in which companies can positively impact the level and nature of food security, and these opportunities are not only restricted to the food and beverage industry, but are also open to industries such as finance, infrastructure, extractives, and IT.6 For example:
Invest in new crop varieties and sustainable production processes that minimize the environmental impacts and maximize the social benefits of agriculture.
Contribute technical and financial resources to the efforts to mitigate
Invest
in b e t t e r transportation and storage infrastructure to prevent p o s t -h a r ve s t food spoilage
Develop markets for sub-standard products that are still safe, taste good, and have nutritional value.
Create marketing cooperatives to improve the efficiency of getting food to markets. In addition to contributing to solving one of humankind’s most serious and intractable problems, by taking the opportunity to address food security, businesses can also look forward to larger consumer markets, more sustainable supply chains, and enhanced political stability around the world. To quote the Rome Declaration: “In a world of increasingly interlinked institutions, societies and economies, coordinated efforts and shared responsibilities are essential.”
BSR is a global nonprofit business network and consultancy focused on sustainability. Learn more at www.bsr.org References: 1. UN Food and Agriculture Organization, http:// www.fao.org/hunger/en/ 2. World Health Organization, http://www.who.int/ mediacentre/factsheets/fs311/en/ 3. UN Food and Agriculture Organization, http:// www.fao.org/food-loss-and-food-waste/en/ 4. BSR and University of Cambridge, http:// www.bsr.org/reports/BSR-Cambridge-ClimateChangeImplications-for-Agriculture.pdf 5. BSR, http://www.bsr.org/en/our-insights/bsrinsight-article/guaranteeing-the-security-of-theworlds-food 6. BSR, http://www.bsr.org/en/our-insights/bsrinsight-article/preventing-food-loss-and-waste
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Program
Energy Efficiency in Building Kick off Meeting in Singapore In January 20th, IBCSD attended the Energy Efficiency (EEB) in Building Kick off Meeting in Singapore. As part of WBCSD works, it was an essential milestone towards EEB Actions for Singapore, Malaysia and Indonesia. The objective of the meeting was to present in detail the EEB lab concept, share knowledge on markets for energy efficiency in building in Singapore, Indonesia, and Malaysia, set up committee of experts, and mapping the stakeholders. The project aims to unlock financially viable energy efficiency investments that today are not being realized because of mostly non-technical (i.e. financial, regulatory, organizational) barriers, therefore raise awareness on the shared value of investing in EEB and
remove barriers are part of the project. As the outcome, Indonesia will have the EEB lab in July, engaging stakeholder in energy efficiency in building segmented in commercial and industrial building, hospitality and hospital, and airports. Several issues will also be addressed on the EEB Lab in July where Business Models/Investing and Financing, as well as Verifying Value and Return of Investment are among them. The steering committee from each countries are organizing the Technical Committee and Logistical Matter.
Building Capacity in Resolving Land Use and Resource Conflicts The private sector is the primary economic driver and employer in Indonesia, and the biggest user of landbased resources. For these reasons, the private sector has a strong interest in finding effective approaches to addressing gaps in order to balancing growth, equity, and sustainability. IBCSD in collaboration with KADIN Indonesia has been going through assessment process to identify approaches in providing the clearing house for social conflict issues. For addressing the issue, IBCSD has been taking actions by supporting KADIN Indonesia on evaluating and pressure testing the potential opportunities for KADIN to meaningfully address the social conflict issue involving private companies. The earlier findings were companies lacked the capacities, knowledge and resources to effectively prevent, mitigate, and resolve social conflict, and that there were few initiatives may designed to directly support companies in addressing these
gaps. For this purpose, on 4 February in Jakarta, IBCSD organized a sharing session to build a dialogue around social conflict resolution, to share knowledge and update relate to social conflict on business operation, including the opportunity for IBCSD members to learn from experience of outside Indonesia. By Larry A. Fisher, PhD, a Research
professor from School of Natural Resources and the Environment, University of Arizona, USA was the resource person in the session. Numbers of companies were invited and they actively participated on the discussion. IBCSD, as support to KADIN will held more sharing sessions with different topic as capacity building to business sector.
Volume XIII, March
About IBCSD The Indonesian Business Council for Sustainable Development (IBCSD) is a CEO-led associations of companies operating in Indonesia, who share a commitment to promote sustainable economic growth, ecological balance and social progress. To learn more about IBCSD membership, please contact: info@ibcsd.or.id Follow us on Twitter: @IBCSD2011 Facebook: IBCSD Indonesia Business Council for Sustainable Development (IBCSD) Menara Duta Building, 6th Floor Wing B Jl. HR. Rasuna Said Kav. B-9 Jakarta 12910 T: +62 21 5290 1941-42 F: +62 21 5290 1949 www.ibcsd.or.id
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