Event B20 Increase Sustainable Investment
By: Aprilian Hutapea )*
The existence of investment in Indonesia must be put to good use, moreover the ease for investors to invest in Indonesia will be an attraction to make Indonesia a sustainable investment destination.
Head of the MSME Division at the Indonesian Employers’ Association (Apindo), Ronald Walla, expressed his appreciation for the implementation of B20 Indonesia, the event was aimed at enabling MSME entrepreneurs to be able to manage a sustainable business.
This discussion related to supply chains and sustainable business surfaced in The Business 20 or B20 which is a Business forum in the G20 Presidency in Indonesia which was held in East Java on September 16, 2022 and was attended by business activists. The discussion specifically highlighted the efficient supply chain process so that it can have a positive impact on the business.
Ronald said, one of the business strategies emphasized by B20 is that MSME entrepreneurs must understand the supply chain better to the advantages of their products so that they have good competitive power for the company so that they can meet customer expectations.
The implementation of the G20 in Bali in November will discuss specifically matters related to trade, which can open up great opportunities for MSME players to enter the global supply chain system. Stakeholders from all over the world are believed to be able to provide access for MSME actors from Indonesia to enter the system.
With the approach taken during the G20 event, it is hoped that domestic MSME actors can enter the global supply chain system inclusively. Ronald conveyed that MSME activists and business actors in all industrial sectors should practice sustainable business and investment models based on environmental, social, governance (ESG) principles.
This ESG has proved to be popular in five major European markets, the United States, Japan, Canada, Australia and New Zealand. This sustainable investment certainly takes into account the environment, social and corporate governance.
Companies that implement the ESG concept will find it easier to get investment and become a basic consideration for investors in making decisions to invest or not in a company.
Ronald explained that companies that implement the ESG concept will be able to provide added value to stakeholders, ecology and society through community empowerment.
A number of non-profit organizations have also been campaigning for ESG-based business and investment practices. Wismilak Foundation, for example, held the Diplomat Success Challenge or DSC to encourage the growth of entrepreneurs aged 20-45 years.
This discussion forum also spurred MSMEs to be integrated with the global supply chain system and took the initiative to assist MSMEs in carrying out digital transformation so that they could accelerate to global supply chains. In addition, MSMEs are expected to be able to create sustainable business models based on ESG.
On the same occasion, Head of Task Force Side Events and CEO of ASYX, Lishia Erza said, in the future there must be changes in supply chain governance globally and nationally. The challenge is to expect long-term cooperation between companies.
In this B20 forum, it seems that it covers many things, namely financing and industrial capacity, its relationship with smaller businesses, and how the government is a catalyst.
Likewise from a financial point of view. Many new financial models must be introduced, given the importance of financial institutions working with regulators, namely Bank Indonesia, the Financial Services Authority (OJK) and others. Later, after the B20, there will be a program design for the next five years to foster SMEs and the industry level from all sides.
The program which has been held since 2010 is an entrepreneurship incubator that strengthens the entrepreneurial ecosystem in Indonesia, and supports sustainable business in the event organized by B20 Indonesia.
DSC is a good example, this program is very comprehensive, the knowledge provided is able to enrich business, behavior as a business actor and business ethics. This is the capital of the DSC participants to be able to develop and progress bigger.
Event B20 also highlighted the issue of environmental sustainability where Indonesia has a strategic role to tackle the climate crisis, namely the restoration of natural resources.
The Executive Director of the Nusantara Nature Conservation Foundation (YKAN), Herlina Hartanto, explained that to be able to embrace the main stakeholders, namely rural communities close to tropical forests, peatlands and others, the efforts made were community and economic empowerment.
Of course there must be investors for the program, where investors will provide funds by looking at the product side and production process whether there are