"The launch of this guide is the starting point for innovation to answer the demands of the business world and consumers towards sustainable economic practices and is the government's effort to increase the realized value of direct investment in Indonesia, in line with the global trend towards sustainability," Promotion Director for Southeast Asia, Australia, New Zealand, and Pacific of the Ministry of Investment Saribua Siahaan stated in Bukit Doda, Sigi District, Central Sulawesi, on Friday.
He said the guide can be used by various parties, especially investors, businesses, and the government, to encourage more investments that not only have economic value but also have a good impact. In addition, the existence of the guide reflects the government's efforts.
"Currently, the investment trend that prioritizes impact (besides profit) is increasing. Especially with the increasing number of natural disasters due to the impact of the climate crisis and environmental degradation, many investors do not just hope to get profits but also hope that the investment made can create a good impact. Investments, which are socially friendly and environmentally friendly, are also starting to show significant growth globally and regionally," he affirmed.
Various alliances at the initiative of the business world are also committed to achieving the target of net-zero carbon in running their businesses as well as market-side trends increasing demand for sustainable products.
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Moreover, at the 27th Conference of Parties (COP) forum held in November 2022, the Indonesian government conveyed its increased ambition to reduce greenhouse gas emissions through Indonesia's Enhanced NDC (ENDC) document.
The investment potential for natural business innovation is also quite large. A 2019 World Resource Institute (WRI) report estimated that global investment of US$1.8 trillion in Nature-Based Innovation from 2020 to 2030 could generate net benefit of US$7.1 trillion.
Sustainable investment development is also listed in Indonesia's Five Big Agendas as stated in the State Speech by the President of Indonesia on August 16, 2022, including downstreaming and industrializing natural resources, optimizing clean energy resource and a green economy, as well as upgrading MSMEs.
The plantation, maritime, fisheries, and forestry sectors are also included in the priority sector to boost investment. The investment requirement for this sector in Indonesia until 2040 is recorded at US$45.4 billion. The government is currently working to achieve net-zero emissions by 2060 or sooner.
The role of private investment is crucial to accelerate sustainable development through investments that are environmentally friendly, committed to educating local workers, willing to transfer technology, and provide added value for Indonesia for managing natural resources by downstreaming products.
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Translator: Aji Cakti, Cindy Frishanti Octavia
Editor: Yuni Arisandy Sinaga
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