Interview: Shinta Kamdani, Honorary Trustee, Indonesia Business Council for Sustainable Development (IBCSD)
To what extent does sustainable development play a role in Indonesia’s business ecosystem?
SHINTA KAMDANI: Sustainable development is increasingly crucial to Indonesia’s business ecosystem, addressing the country’s significant challenges and global demand for sustainable practices. It is one of the four fundamental pillars of Golden Indonesia 2045 vision, which aims to propel the country out of the middle-income threshold to become the world’s fourth-largest economic power.
To achieve its development agenda, the government has developed the Roadmap of Sustainable Development Goals Indonesia, and policies emphasising environmental conservation and low-carbon business development. Indonesia aims to position itself as a global reference in innovative, affordable decarbonisation, as well as to establish the world’s largest green industrial park. This requires fostering a strong investment climate in low-carbon sectors and utilising the green economy to address climate change.
In that regard, the IBCSD actively contributes to sustainable development and is involved in the upcoming phase of the Low Carbon Development Indonesia initiative. In addition, the Financial Services Authority issued the Sustainable Finance Roadmap to develop funding for green projects, increase foreign investment and support Indonesia’s green business sector.
How can local businesses leverage innovation and technology to drive sustainable development?
KAMDANI: The business sector has the opportunity to disrupt conventional practices through innovative and effective solutions, integrating economic growth with social and environmental solutions through multifaceted strategies. These include promoting sustainable economic development with innovation, technology and a focus on social inclusion; community development; capacity building; and digitalisation. For instance, using technology to enhance energy efficiency and reduce carbon footprints demonstrates a commitment to sustainable consumption. Indonesian businesses can also lead in investment and collaboration with foreign partners to move towards renewable energy sources, green technology and sustainable practices.
Which strategies can help the country’s corporate sector advance socio-economic development?
KAMDANI: Collaboration and cross-sectoral consolidation are crucial for socio-economic development. This includes merging stakeholder engagement, community development and corporate social responsibility with sustainable risk management and reporting practices. One critical aspect of the latter is the incorporation of environmental, social and governance (ESG) aspects and international standards into sustainability reports. In 2022, 88% of companies in Indonesia submitted a sustainability report, which not only ensures transparency and accountability within corporate operations, but also builds trust with stakeholders, and addresses demands for sustainable and responsible business practices.
In which ways can corporate sustainability strategies promote long-term competitiveness?
KAMDANI: Embedding sustainability into corporate strategies is likely to be critical in the coming years. By incorporating sustainable business practices, companies can effectively respond to investor and global demands, regulatory requirements and talent acquisition needs, while also boosting productivity. Furthermore, corporate sustainability offers numerous advantages, including enhanced brand value, cost reduction, diverse investment opportunities, market expansion and the mitigation of ESG risks. Sustainability is more than just addressing challenges – rather, it is a strategic move to enhance resilience and long-term market value, positioning businesses competitively and turning sustainability into an opportunity. This approach can help shape a future in which businesses thrive through resilience, competitiveness and enduring value.
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