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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Priority Programs

Sustainability

Sustainability

The Sustainability Program (carbon trading, SDG/ESG, Ecotourism), is part of Kadin's support for Presidential Regulation (Perpres) Number 98 of 2021 concerning Implementation of Carbon Economic Values ​​(NEK). The existence of the NEK Implementation Presidential Decree has made Indonesia a world driving country in tackling market-based climate change at the global level towards sustainable economic recovery.

The Ministry of Environment and Forestry (KLHK) predicts that Indonesia's carbon trading potential can reach IDR 350 trillion. Indonesia is also able to absorb around 113.18 gigatonnes of carbon, which is obtained from tropical rain forests (25.18 billion tons of carbon), mangrove forests (33 billion tons of carbon), and peat land areas (55 billion tons of carbon). This potential must be utilized as well as possible by all parties, including members of Kadin. The plan to implement carbon trading in Indonesia is expected to become a business opportunity for entrepreneurs. Carbon trading in Indonesia is estimated to reach US$ 300 billion per year.

This value comes from a number of factors, such as replanting deforested forests, the use of new and renewable energy (EBT), household appliances, and waste disposal. In addition, the application of Environment, Social, and Good Governance (ESG) continues to be encouraged. This is done through efforts to decarbonize businesses and increase investment in environmentally friendly business sectors.

The target is the commitment of 10-115 companies in applying ESG to Stakeholder Capitalism Metrics. As for the application of ecotourism or ecotourism, currently the government and business actors continue to develop ecotourism that prioritizes aspects of nature conservation, economic empowerment of local communities, and education. Later tourism will no longer only focus on chasing tourist numbers in Indonesia, but on efforts to encourage sustainable tourism.

Towards a Sustainable and Resilient Future Through Kadin Indonesia's Sustainability Programme

The Sustainability Programme initiated by Kadin Indonesia is part of Kadin's efforts to support the implementation of several aspects, including:

  • Carbon Trading
  • Sustainable Development Goals (SDGs)
  • Environment, Social, dan Good Governance (ESG)
  • Ecotourism Development
 

Presidential Regulation (Perpres) No. 98 of 2021 on the Implementation of Carbon Economic Value (NEK) makes Indonesia a world leader in efforts to address market-based climate change and sustainably restore the economy.

The potential for carbon trading in Indonesia is estimated at IDR 350 trillion, providing significant business opportunities. In addition, carbon trading in Indonesia is estimated to reach US$ 300 billion per year, which will arise from various activities, such as forest restoration, renewable energy use, sustainable household practices, and better waste management.

To achieve sustainability goals, the Sustainability program promotes the achievement of Sustainable Development Goals (SDGs) and the application of Environment, Social and Good Governance (ESG) in business. This involves reducing carbon emissions (decarbonization) and increasing investment in environmentally friendly business sectors.

In addition, the Government and businesses are developing ecotourism that emphasizes the importance of nature conservation, economic empowerment of local communities, and education. This is expected to change the tourism paradigm so that it does not only focus on the number of tourists coming to Indonesia but also on the sustainability of nature and local communities.

To accelerate this program, Kadin Indonesia formed an ESG Working Group (Pokja) that has created guidelines for integrating ESG into company operations sustainably. ESG integration is expected to assist companies in developing a business development framework based on responsible investment principles.

Comprehensive information on ESG guidelines can be accessed on the website:

Our Program

Kadin Chairman's Visit During S R Nathan Fellowship Programme in Singapore
Kadin, Unhan dan Bakamla Bahas Strategi Pengelolaan Kawasan Perbatasan di Natuna dan Anambas
Kadin Indonesia and JETRO Collaboration Expands MSME Export Market

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry