Vol. III/ June 2013
Indonesia Business Council for Sustainable Development From Editor in Chief
Learning by Sharing:
Tiur Rumondang
Readers, We are pleased to bring to you IBCSD‟s third newsletter. Highlights are given in this edition with regard to our activities, Learning by Sharing, and Council and Liaison Delegate meeting. Thank you for all the participants, we are very pleased to have you for the fruitful discussion. I also would like to thank all the
Agricultural Ecosystem Learning by Sharing hosted by IBCSD was set as a breakfast meeting on May 17th with key speakers were Prof. Emil Salim, Chairman Advisory Council to The President; Gabriela Burian, Director of Sustainable Agriculture Ecosystem – MONSANTO.
distinguished speakers for delivering the
Member Council & Liaison Delegate
Also present as commentators were Prof. Dr. Ir. Sudarsono, MSc. - Professor in Plant Molecular Biology and Biotechnology, Bogor Agriculture University (IPB); Ir Don P Utoyo, MBA – Chairman Federation of Indonesian Poultry Society (FMPI). This discussion were facilitated by Dr. Ir. Agus Pakpahan - Expert of The Center for Socio-Economic Research and Policy Studies (PPSEKP), Agency for Agricultural Research and Development – Ministry of Agriculture. Also present in the audience are delegates of IBCSD member companies such as from Monsanto, from non member such as Biotrop, Price Waterhouse Coopers (PWC), and also consultants.
In improving awareness for business community for the importance of sustainability on their business practices and to report its programs, Indonesia Business Council for Sustainable Development (IBCSD) hosted the Member Council and Liaison Delegate Meeting in Jakarta on Tuesday, May 28th 2013. The annual meeting forum invited business community from IBCSD member and also non-member to gather and share the
idea of stepping out from megatrends as business as usual to inclusive business initiative as part of Indonesia Vision 2050. On the meeting, around 70 participants which came from business sector were given an insight about ecosystem, the Business Ecosystem Training (BET) - a training initiated by IBCSD - , water issue, and Green Growth with REDD+. The insight was given by PWC, Holcim Indonesia, GGGI, RAPP, PT. PIPA, Carbon Disclosure Project (CDP), Genergy, and Yayasan Penabulu, as the company members and working partners of
This forum had the purpose to give a sense about ecosystem services in relation to agriculture; to understand the challenges agriculture is facing and how sustainable agriculture can contribute in maintaining ecosystem service. Prof. Emil Salim explained what we are facing. First, is the high rate of population growth. Second, is the fact of Indonesia which already is at a deficit in environmental capacity in some regions of Sumatra and whole of Java “We must conserve at least 12% of the island and left untouched, the rest of the 88% should be maintained sustainably”. Third, the business approach where we have to change our business attitude. Gabriela Burian, said that the high population growth rate leads to the food shortage. Thus, farmers must become more productive to prevent food shortages around the world. Monsanto used biotechnology to breed crop plants which adds beneficial genes to the plants. Monsanto was committed to conserve more while increasing yields, using less water with employing more irrigation, and also help preserve biodiversity. Don P Utoyo, pointed out that currently the diet of Indonesian people mostly consisted of carbohydrates and less from protein. To fulfill the poultry production where chicken contributes to 65% of protein consumption, an existing challenge of corn supply and soy bean meal as feed has to find a way out. “Indonesia has a serious problem for taking things for granted and were not ready when problems suddenly occur” said Sudarsono. Emil Salim added “According to sustainable development, IBCSD. Discussion of Indonesia Vision 2050 explored the scenario of Business as Usual versus Green Growth. The session discussed the acceleration of green growth in Indonesia and its elements. The challenges and opportunity in achieving the 2050 vision were discussed on the funding, technology, regulation, and human resource point of view. IBCSD hopes, this annual meeting would improve awareness of business community on sustainable
Inclusive Bussiness Inclusive Bussiness (IB) is perceived as business model in achieving green economic. It is a business ventures which include the low income segment (BoP) within their value chain as consumers, suppliers, distributors and/or employees. Indonesia is the 16th largest economy in the world and one of the fastest growing economies. Indonesia has a relatively stable government, vast natural resources and the world's fourth largest population of around 250 million people, which includes an emerging middle class driving consumption and domestic production.
purchasing power parity 2008. The Asian Development Bank (ADB) and SNV Netherlands Development Organization develop a comprehensive feasibility study on the opportunity for “inclusive business” development and investment in Indonesia. The study was also supported by the Ford Foundation and World Business Council for Sustainable Development (WBCSD) as the business sector network.
The study shows that Indonesia has a strong social corporate responsibility culture, and there are a lot of good examples on social enterprises working successfully in Indonesia. However, only Despite these positive macro-economic indicators few companies can be classified as currently the operating environment for investment in being inclusive business with high viability and private business in Indonesia is challenging and profitability and strong social systemic impact at not without risk. Challenges include performance the same time. Nevertheless there are sufficient of the legal system, land acquisition laws, IB companies whose investments would kick off bureaucracy and insufficient infrastructure. with some catalytic support.
PARTNERS
Although there has been significant economic progress, a large proportion of Indonesians are extremely vulnerable to poverty with 119 million Indonesians (49% of the population) living at below $2 per day and a further 29% of the population regarded as „nearly poor‟ on $3 per day per capita international poverty line on
MEMBERS
To learn more about IBCSD membership, please contact: info@ibcsd.or.id 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
Also the ecosystem for inclusive business is still relatively weak, with banks being reluctant to lend to IB firms due to risk aversion and other reasons, although many of those IB companies are actually profitable. The government is also interested to promote
Ecotech Building
Modern Agriculture
Holcim Indonesia
Great Giant Pineapple (GGP)
Holcim Indonesia looking to set examples for carbon emission reduction opportunities have realized a fine example of a ecotech building. The cement production worldwide contributes to approximately 5% to the globalCO2 emission. Far more significant however is the carbon emission over the lifetime of the operation of a building. It is estimated that as much as 50% of the global greenhouse gas emission come from the daily use of electricity.
GGP has emerged as the fastest growing producer in the pineapple Industry, supplying 14% for Canned Pineapple & 4% for Pineapple Juice Concentrate of global demand from the plantation in Lampung. World demand or requirement on sustainability, climate change, and high dependency on environmental carrying capacity are the challenges for GGP.
To promote sustainable construction and to show how businesses can contribute to sustainable development, Holcim Indonesia initiated and sponsored the development of an iconic Ecotech building for ATMI (Technical Academy of Manufacturing Engineering) in Bekasi. The building is very energy efficient as it incorporates sustainable construction technologies. One of the superb energy saving idea in this building is the „Under Floor Cooling System‟. This cooling system uses Uponor special cooling pipes
To overcome the challenges, GGP applies modern agriculture rather than traditional and green agriculture, which is understood as the practice of farming using principles of ecology to increase biological, physic and chemistry quality of soil with biological approaches, where soil not only as growth media for plant, but also as producer of nutrient, supply available nutrient, pest controller, nutrient conservation, soil conditioner, and nutrient storage. It uses biological or organic pest control as part of integrated pest management. In the end, modern agriculture is believed can bring a better impact to environment. As its sustainability initiatives, beside
‘’Sustainable development is the peace policy of the future ‘’- Klaus Topfer, UNEP Executive Director (2004)