To mitigate climate change, the government published an updated NDC for 2030, stating that Indonesia’s commitment to reduce GHG emissions is 29% independent and 41% with additional contributions from the international community. The Indonesian government is committed to strengthening climate resilience by improving economic, social, and livelihood, as well as ecosystem and landscape resilience. To reach the 2030 NDC target alone, the country would need at least IDR 4.52 quadrillion ($310 billion).
The Ministry of Finance, Sri Mulyani, has stated the urgency for the whole business ecosystem, including corporations, to commit to a green/net zero project ecosystem, hence providing the opportunity to obtain government support and funding. This implies that mainstreaming ESG in business and projects in the future is predicted to reduce external, PR, and financial risks. Pressure for net zero begins to emerge from the market. A literature review from the Edukarir team shows that overseas customers have started requesting companies to produce environmentally friendly products. Aside from the importance of stating the percentage of energy use comes from renewable energy, there is also increasing pressure to achieve net zero.
To help achieve the business aim of making a profit while maintaining sustainability in the long term, a thorough analysis of business models, markets, and stakeholders in the application of ESG needs to be done. Meticulous ESG planning and implementation are now considered a way of de-risking–even upscaling the business.
