Jakarta (ANTARA) - The Indonesian Cooperatives and Small and Medium Enterprises (SMEs) Ministry (Kemenkop) and the South Korean SMEs and Startup Ministry have organized the 3rd Korea-ASEAN Business Model Competition for SDGs 2022.

The competition aims to support the development of startups and SMEs from South Korea and Southeast Asian countries.

"Through this event, Indonesians can directly see SMEs that have adopted business practices that support SDGs’ (sustainable development goals’) achievement," Kemenkop's Secretary Arif Rahman Hakim said in a statement issued on Wednesday.

The competition will feature several new innovators who are interested in running businesses that have social, economical, and environmental impacts.

The COVID-19 pandemic has triggered health and economic crises that are hindering SDG achievement. However, it has also raised the people's awareness on preparedness for handling crisis, he noted.

Moreover, the people's awareness of green economy, low carbon, resource efficiency, and social inclusion has also increased, he said.

Green economy is one solution for reducing the negative impact of resource exploitation by the industry and support SDG achievement.

Green economy also presents a huge business opportunity, which SMEs are expected to grab.

"This is in line with the study results from World Economic Forum 2020, which has estimated that green economy transition can produce business opportunities worth US$10 trillion and create 395 million jobs by 2030," Hakim said.

He highlighted several challenges that SMEs can encounter while entering the green economy.

These include difficulty in financing their business, challenges related to designing an accurate fiscal policy, as well as SMEs' awareness and interest in utilizing eco-friendly raw materials and processes.

Hence, more investment in businesses that adopt green economy practices is necessary to expedite SDG achievement and bolster collaboration between stakeholders, both domestic as well as overseas.

"I expect the chosen top ten of Korea-ASEAN Business Model Competition SDGs 2022 to always maintain their fighting spirit to show their business advantage to potential investors," Hakim remarked.

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Translator: M Baqir I A, Fadhli Ruhman
Editor: Sri Haryati
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