The principles that need to be implemented in ESG are primarily to increase our competitivenessJakarta (ANTARA) - The implementation of environmental, social and governance (ESG) principles in infrastructure development aims to increase Indonesia's competitiveness, Minister of Public Works and Public Housing Basuki Hadimuljono stated.
"The principles that need to be implemented in ESG are primarily to increase our competitiveness," Hadimuljono noted in his speech at the Ministry's ESG Lecture event here on Thursday.
He noted that ESG is a global criteria, especially for implementing governance in infrastructure development.
Hadimuljono remarked that investors tend to look at governance first before deciding to invest their capital.
"Hence, if our governance is not good, then investors will definitely not want to come in (to invest their capital)," he pointed out.
Hadimuljono stated that ESG is a parameter commonly used in implementing sustainable development.
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"Hence, all forms of activity and decision making must implement the principles of environmental conservation, social responsibility, and good governance," he remarked.
ESG encapsulates three aspects that are used as basic considerations in business processes to provide government support for infrastructure projects through the development of ESG frameworks and ESG manuals.
The frameworks are the principles or standards used in managing businesses that adhere to certain criteria and that have a positive impact on the ESG.
Meanwhile, the ESG manual is a detailed explanation of the ESG framework that contains technical instructions for implementing ESG in the infrastructure project.
Involving ESG in government support instruments can ensure that infrastructure provision produces a positive impact.
The ESG concept has received support from the United Nations Development Program as well as the Canadian government through grants administered by the World Bank.
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Editor: Jafar M Sidik
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