Volume XV, July - Dec 2015

NEWSLETTERINSIDE THIS ISSUE: P1-2 REMARKS OF CEO / PRESIDENT | P3-4 EVENTS, IBCSD Council | P5-9 WASH, MONSANTO, IPOP, EEB | P10 FOREST FIRE

The process of business development must also bring prosperityto the environment, social and business sectors itself, thereforewe are hand in hand walking to achieve the progress of privatesectors, the government and the people. Not only the process willinfluence other sectors, it can also help companies to retain thebest human resources and make them more attractive toinvestors and insurers, while reducing exposure to regulatoryrisks and other liabilities. Mauricio Amore CEO of MonsantoIndonesia, said that Indonesia is actually has potency to stopimporting corn, as long as there is support for the farmers and notlet them squeezed by a long distribution chain.

After the council meeting in August 2015 and beside in ruling theprocess of leadership and organization chain, we have chosenthe new chairman of IBCSD and we congratulate for his new rolein IBCSD, to Bapak Tony Wenas. As mentioned and we agreedthat IBCSD council meeting functions to generate innovativeapproaches in implementing sustainable development, to createcogent, compelling business messages for Indonesia’s businessagenda beyond business as usual. By pursuing sustainabledevelopment, it makes companies more competitive, moreresilient and adaptable in a fast-changing world, and moreprepare for the future. and also lately the meeting at COP21 hasemphasized that it shows another effort will be planned, anothercontribution will be recorded, and another actions will beimplemented. (Continued on page 2)

Dear Readers,We are pleased to bring you the 16th Edition of ourNewsletter with topics on Energy, Palm Oil, and theresult from IBCSD Member Council and DelegatesMeeting. The Member Council meeting has formed anew structure of Steering Committee and ExecutiveCommittee of 2015-2018.During the 6 months, we’ve worked on WASH atworkplace pledge, supporting the 4th SocialResponsibility Asia, 2nd Business Ecosystem Training,and Energy Efficiency in Building. We congratulate themember companies who have made decision to be partof the program, as an action toward sustainablebusiness, and we hope to see more member companiesjoining the initiative in 2016.

Message fromthe editor...

"

"In the upcoming programs, we are trying to developIBCSD Framework until year of 2020, structuring allthe development of the organization and initiativeseffort since its establishment in 2011. We classify ourwork through three major works, they are (1)Thematic area, carrying the cross sectoral issues; (2)Sector and Value Chain, with sector focusing andinvolving business players along the value chain; and(3) Capacity building for all sectors and its valuechain, focusing to escalate the capacity of corporateemployee, young generation as well as technicalpeople that are able to link businesses withecosystem.

Having the classified work, we try in translating theway we work and connecting them with what we needto achieve by building the key program and initiativethat significantly need immediate responses frombusinesses such as climate change, energyconservation, social impact, sustainable consumptionand production, and water solution. We are definitely

open for additional programs and initiatives as we arefacing dynamic global and national economy.

We are mainstreaming these initiatives throughactivities such as; (1) program development; (2)training & capacity building; (3) dialogue & advocacy;(4) project development; (5) building partnership and(6) event & promotion.

Through these actions, we hope we would frame theoutcome by:

1. Providing solutions for environmental andsocial issues;

2. Increasing sustainable business practicesalong the value chain;

3. Giving quantitative impact; and4. Creating scalable and replicable business

process & solutions.Looking at the list of member services create byIBCSD, we look forward to your active participation inthe organization and find your own need by utilizingIBCSD to strengthen your sustainability performance,and at the same time contribute to Indonesia businesssociety, leading the country to the solutions we need.

As most of you might be involve in our activities, we willbe working hard with numbers of valuable partners ofIBCSD, national and international, to deliver keymessages from private sector about how we playingour role in sustainability. We always open our self formore partnership to create transformation of businessand industry in Indonesia, so we can play a better rolein the global trade.

Thank you!

Remarks of ChairmanClayton Allen WenasI would like to say thank you for all partners, member companies and the president of IBCSD. Asthe new chairman of IBCSD for the next period, we will contribute to the process and developmentwithin IBCSD Programs in reaching more efforts on sustainability businesses.

Remarks by President of IBCSDShinta W KamdaniIBCSD as a CEO-led association of companiesoperating in Indonesia, who share a commitment topromoting sustainable development throughsustainable economic growth, ecological balance andsocial progress not only play its role for theimprovement of economy, but also to start the initiationhow it will not harm other sectors of life, such asecological and social progress. The gathering foranother transition of member council, liaisondelegation and the trajectory for the new and

developed programs is our effort in the sustainabledevelopment.Appreciation goes to the Members Council (CEOs andequivalent), the Liaison Delegates and the IBCSDSteering Council, in their hard effort to make theprograms running. The progress report of IBCSD’sprograms, initiatives, focus areas, shows that we arekeep pursuing the effort to the development ofSustainability in Business sectors.

This is a bigger theme, with meaningful ideas thatas a human we should never stop, but alwaysready for an action with strategies and ideas. Howbusiness development services on InclusiveBusiness, Private Sector Leadership for EnergyEfficiently in Buildings, and Sustainable Businesstowards Peaceful Arbitration, as well as the socialconflict settlement are the majority issues wemust prepare. Moreover, you also couldcontribute in the organizational dynamic to keepthe council running and achieve for thesustainability performance. Let us bring theprevious question, that the world, the nationsechoing a sentence, ‘Can business be a positiveforce to solve global environment and socialissues?” and beside the projection of allchallenges, let’s make this as a platform forsustainability in actions. Plan for a roadmap andhow business can positively influenceenvironment and social trends whilestrengthening the resilience to issues like climate

change, demographic dynamics and skillsshortages. Let’s use a big word of YES, that wecan do that through our planning of Action 2020 tothe sustainable developments and start a plan.Because ‘YES’ is a commitment and within this

I appreciate the success of council members,member companies, and IBCSD team to be ableto reach the programs significantly. I also want tocongratulate all the companies who take theinitiative and reach the contribution tosustainability. We must be proud and use thismoment to be the spirit and the most enchantingmoment that we can do better and always betterfor the contribution to reach the Action 2020 andreach the maximum development oforganizations. I wish you a success and brightideas for a bright action to reach the moreopportunities in facing all challenges in the future.

Remarks by President of IBCSDIbu Shinta W Kamdani

The 4th SR Asia International ConferenceIndonesia Business Council for Sustainable Development (IBCSD) in collaboration with SR Asia and other partner organizations who promotes sustainabledevelopment in Asia, have successfully organized its 4th international conference on November 25th – 27th in Jakarta, Indonesia. The Conference conveyedthe theme of “Welcoming SDGs: Global Partnership for Sustainable Development” to raise public awareness on Sustainable Development Goals (SDGs),primarily in Indonesia. The first day of Conference was held in Atma Jaya Catholic University of Indonesia and then in Paramadina Graduate School for thesecond and third day.

The Conference was a result of a partnership among a number of stakeholder groups consisting of the Indonesian ministry and government agency, industry,consulting sector, higher education, and leading organization in sustainability. They were the Ministry of Manpower of the Republic of Indonesia; AsianProductivity Organization (APO) Japan; Indonesia Global Compact Network (IGCN); Atma Jaya Catholic University of Indonesia; Paramadina GraduateSchool; Trisakti University; SR Asia; Aicon Global Indonesia; Dasa Strategik Indonesia; kabarcsr.com; KBR radio network; BUMN Insight magazine; UnileverIndonesia; Bank BNI; United Nations Center for Regional Development (UNCRD); Indonesia Cleaner Production National Center (PPBN); and InternationalPartnership for Expanding Management Services of Local Authorities (IPLA).

A number of high-level hosts and speakers from government bodies and respected organizations at national and international level presented ideas,experiences and the latest trends in sustainability issues, such as corporate accountability, sustainable business, sustainable tourism, sustainable marine,sustainable city, green building, biodiversity, and climate change. The recommendations highlighted the three pillars of SDGs implementation, namely People,Process and Partnership, to make SDGs successful and be able to deliver positive impacts.

A paper titled “The Power of Community Led Total Sanitation Program: A Collaborative Sustainable Movement for Healthier Communities” from PT AdaroIndonesia was awarded the 1st Best Paper. The paper was selected as the winner after a review process of 32 papers submitted to the Committee.

Our Events ....

Page 2

The cleaning of garbage was held in the area of Kampoeng BNI MuaraAngke. Achmad Baiquni stated that BNI tried to contribute in the governmentprograms in making the prosperity of fisherman near the coastal areathrough maintaining the effort on Traditional Fishing Processing (PHTP).

“We hope that Kampoeng BNI Muara Angke will become a salty fish villagethat is green, clean, and healthy by this effort. With a sustainableenvironement, it will contribute in the increase of prosperity to the people",Baiquni stated.The area of PHPT Muara Angke is an area for prosessing the result oftraditional fishing, owned by the provincial government of DKI Jakarta withinthe area of 7 Hectare. The location is popular as the center of salty fish andmany other fish processed such as pindang fish, smoked fish, as well as theprocess of fish waste.To increase the quality of the area in Kampoeng BNI Muara Angke, BNI didnot only help the strenghtening of the business, but also provide theCapacity Building, provision of Water Treatment, and to hold a Seminar forthe Society Skills, to build the road and paving block, planting Mangrovetrees, to support the education of the victim's of fire, as well as building thepray area.

Besides, BNI also has a green programs as an activity that was held from2011 through the Corporate Community Responsibilty (CRR) Programs bysupporting the OBIT (One Billion Indonesia Trees) program (2011), donatingtrees in collaboration with Budiasi Organization in Sentul bogor, West Java;and many others.

For further info, please contact:Tribuana Tunggadewi, Corporate Secretary BNITelp: 021-5728387, Email : bni@bni.co.id

BNI Clean the Garbage in MuaraAngkeThe Director of BNI, Achmad Baiquni Give support to clean the gargabe in Muara Angkein cooperation with the ministry of State Owned Enterprises, Green Smile, Indonesian Navyand PT Telkom

Jakarta, 8th August 2015. PT Bank Negara Indonesia (Persero) Tbk (BNI)supported by the Ministry of State Owned Enterprices, Indoneisan Navy (TNI),and PT Telekomunikasi Indonesia clean Muara Angke area, North Jakarta fromthe mounds of garbage which has mounted in years. There are 38 garbagetrucks and excavators were used to lift up the garbage in the final disposal area(TPA) Bantar Gebang, Bekasi, Jawa Barat. It took for three days continously tofinish. This was for commemorating the 70th Indonesian Anniversary (HUT RI)for people at Muara Angke dan surrounding who had already relieved from thestink of the garbage.

The cleaning process is the main program of Senyum Hijau Kampoeng Angkewhich focus to be held in Muara Angke, Jakarta, started from Saturday (8thAgustus 2015). Minister of State Owned Enterprise, Rini Soemarno; Governor ofDKI Jakarta, Basuki Tjahaja Purnama, The Advisor of Green Smile IndonesiaDadang Irawan, Director of BNI Achmad Baiquni, Muara Angke People, andStudents attend in this agenda. This program is held as part of blessings in the70th Anniversary of Indonesia Independent Day by encouraging a theme"Sinergy of State Owned Enterprise (BUMN) to build the nations.Mr. Dadang Irawan stated that the mounds of garbage in the coastal area ofIndonesia, especially in Jakarta has already massive and worrying, such as inMuara Angke. The mounds of garbage in Muara Angke has accumulated andmounted and become a serious problem in environment. Before, Muara Angkewas green with Manggrove, however it is arid and dry at this moment. Theintrusion of sea has reached far to the people regency and it gives bad impactsto the clean water stock. The garbage has also caused the damage of theMangrove plants.The main function of the event "Senyum Hijau Kampoeng Angke" is to cleanand transform Muara Angke Village into a green fishery village. The GreenSmile tried to return the history of Green Muara Angke like it was in the past.

G r e e nEfforts

by BNI

2011

Corporate Community Responsibility(CCR) Unit of BNI support the OBIT (One

Billion Indonesia Trees) Programs, initiated bythe government such as through plant seeding of

one million perennials plants.

2012 - 2015BNI donated 1.500.000 plant seeds of perennials (fruit and

perennials) and 20.000 rare plants with BudiasiOrganization in Sentul Bogor, West Java. Develop a

seeding Programs for Jati Silin in cooperation with Facultyof Forestry, UGM by producing 30.000 seeds of plants;building the City Forest in Banda Aceh, Manahan Solo,

City Garden in Wonosari-Yogyakarta, GunungSumbing Hills, Forest and City Forest in Udayana-

Bali.

Page 3

Indonesia Business Council for Sustainable Development (IBCSD)held its 4th annual Member Council and Liaison Delegate meeting on6 August 2015 that brought together its Council Members (CEOs andequivalent), further joined by the senior executives of IBCSD membercompanies, invited participants and speakers to share the knowledgeof Indonesia business agenda.

Like many in other countries, private sector in Indonesia also facesseveral challenges. IBCSD initiates the Indonesia Vision 2050 as aplatform and framework for private sector in Indonesia in identifyingand addressing the real challenges. Shinta W Kamdani, the Presidentof IBCSD said that “Since 2013, members of the IBCSD and Kadinstarted the Indonesia Vision 2050 project to develop a business viewof a sustainable and sustaining civilization by 2050; then to attack theharder challenges of laying out actions that must be taken, startingnow, to make that vision a reality”.

One of the challenges on sustainability is on how the private sector canminimize the negative impact of their business operation toenvironment and community. The initiative also shows opportunity forprivate sector to take the lead on a broader and strategic developmentdimension on a responsible business, considering that Indonesia ishaving a strong economic performance and potential energy andnatural resources which attractive for private sector. The IBCSD’sPresident further said that “Sustainability is increasingly beingrecognized as a driver for superior financial performance”.

The gathering event was also one of the milestones that defined thenext phase of the organization until 2018, because during the meeting,IBCSD also held the election for its member council and executivecommittee member. As the result, Shinta W Kamdani was re-electedas the President of IBCSD for the second period, with Mauricio FAmore (Monsanto Indonesia) as the Vice President, and NancyMartashuta (BNI), Fazil E Alfitri (Medco Power Indonesia) and IbrahimHasan (RAPP) as the member committee.

While for Executive Commiitee, Tony Wenas (RAPP) was elected asthe Chairman of IBCSD, and Yono Reksoprodjo (Sintesa Group) as thevice chairman, with Tiur Rumondang as Secretary General ofExecutive Director, and Heri Kristanto (Monsanto Indonesia) as themember of Executive Committee.

IBCSD delivered its program and activities report and its achievementthroughout 2014 and mid-2015. This event also discussed severalIBCSD program and activities in the future such as on human rights,energy efficiency in building, social conflict resolution, water andforestry, which are part of IBCSD role for its member companies inachieving sustainability.

The 4th IBCSD Member Council andLiaison Delegate Meeting

Congratulation

and Good Luck!

Page 4

It is estimated that one third of the world’spopulation lacks access to safe sanitation and onein seven does not have access to clean drinkingwater. Moreover, it has been showed that thesimple act of washing hands with soap cansignificantly cut the risk of diarrhoea byapproximately 40 percent. Many businesses haveoperations, employees, contractors and customersin countries lacking access to safe water, sanitationand hygiene. Their economic, social andenvironmental impacts can cause illness orfatalities, impair productivity, and restrict marketsfor some products and services. There is acompelling and clear economic case forbusinesses to demonstrate leadership byaddressing this situation.

In an effort to answering the global challenge ofwater and sanitation, the IBCSD (IndonesiaBusiness Council for Sustainable Development)together with WBCSD (World Business Council forSustainable Developmnet) are calling for thebusiness community to sign and implement the

Pledge for Access to Safe WASH (Water,Sanitation and Hygiene) at the Workplace.

WASH Pledge is an initiative allowing companies toensure that they provide best practice on WASH atthe workplace, and to help companies pave the waytoward sustainability. Access to WASH is a humanright and it is also likely to be included in theupcoming Sustainable Development Goals.According to the World Health Organization(WHO), for every US$1 invested in water andsanitation, US$4.3 is generated from improved

productivity, reduced sick days and a more ablebodied workforce

By signing this pledge companies commit toimplementing access to safe water, sanitation andhygiene at the workplace at an appropriate level ofstandard for all employees in all premises undertheir control within three years after signature. Inthe long term, the intention is to promote access forall workers along the value chain and, ultimately,improve WASH access in the communities in whichthey live.

The pledge is a business friendly implementation, anon legally binding commitment, since the intentionof the Pledge is not to create a new standard and noneed for external auditor. The pledge providescompany with WASH Self-assessment tools(toolkit) to integrate signatory companies’ existinginternal processes in evaluating their WASHstandard and knowing the gaps. It also assistcompany in prioritizing gaps, develop andimplement improvement plan, and then to discloseand communicate the implementation.

To find out more about the WBCSD WASH Pledge,kindly visit www.wbcsd.org/washatworkplace.aspx

For additional detail, please contactFaiza@ibcsd.or.id

Join the Pledge for WASH (Water, Sanitation, Hygiene)

SustainabilityReporting Award2015

The National Center for SustainabilityReporting (NCSR), IBCSD’s partner,organized the 11th ISRA with the theme of“Towards a Greater Transparancy andAccountability”. We appreciate themember companies that have participatedfor the Award and we congratulate PT.BNI (Persero), Tbk as the winner forFinancial Service Category.

Page 5

SarwonoKusumaatmadja (left) theChairmanof theJudging Panel gave the Award on Financial ServiceCategory to Suhardi Petrus (right), the CorporateSecretary BNI, on Sustainable Reporting Award2015 Presentation in Jakarta, 15 December 2015.

www.ibcsd.co.id

Monsanto &ConservationInternational inNorth SumateraOn 24-27 August 2015, IBCSD went to NorthSumatera for a field visit to the programdeveloped by Monsanto Indonesia, one ofIBCSD member companies, together withConservation International (CI). The program,namely Program Sustainable LandscapesPartnership (SLP) is located in District ofMandailing Natal, Tapanuli Selatan, andTapanuli Utara; and Program SustainableAgriculture Landscapes Partnership (SALP)located in District of Pakpak Bharat. About80% of the area of Pakpak Bharat is forest areawhich also part of corridor for animals, theimportant ecosystem in Gunung Leuser andBatang Gadis National Park. It took about 5 to 6hours to reach the location from Medan.The concept of the program is improving

livelihood of farmers in the forest throughcommunity and local government engagementfor conservation. The farmers and community istrained for good practices on sustainable forestand farm landscape, and also supported withfund and seeds. The program getsappreciation from the local government. Year of2015 is the second year of the program. Thereare also other achievements of the programreported by Conservation International such asreduction on deforestation by protecting 2,000hectares in key biodiversity areas; enhancedfarm productivity of corn by 30-100%;enhanced farmers’ household incomes byapproximately 34% or Indonesia Rupiah831,500 per month; enhanced environmentalawareness among women and children asagents of local change, and many others.Since the beginning, the program has beendesigned to contribute in sustainabledevelopment through empowering rural area byimproving agricultural production and protection

of natural resources, which is in line withdevelopment strategy of Ministry ofEnvironment and Forestry; supportingsustainable development through greeneconomic development.

Another fact revealed during the visit is that thelong supply chain for corn make the farmershas to sell the yields to the middle man,because they don’t have access to the marketor industry. Responding to the issue, Mauricio FAmore, the CEO of Monsanto Indonesia, saidthat Indonesia is actually has potency to stopimporting corn, as long as there is support forthe farmers and not let them squeezed by along distribution chain. Sabrina, the MinisterExpert Staff for Food, Ministry of Environmentand Forestry also pointed out importantmessage. She said, giving assistantship tofarmer has to be very careful, that they won’treally rely on the program that will weakenthemselves in the future.

FieldVisit on

CollaborativePrograms

Page 6

Page 6

www.palmoilpledge.id

Palm oil has become 22% major contribution toIndonesia’s GDP, this makes palm oil play important roleas economic driver in national and local by providinglivelihood for about 16 million worker and generatingabout USD 15 billion annually. Smallholder plays asignificant role in palm oil sector in Indonesia by own10.01 million hectares, which accounts 44% of palm-planted area in Indonesia. Palm oil industry hasstimulates the growth of the local economy throughincome earned by plantation workers and companyinfrastructure building.

On the other side of the coins, palm oil plantationexpansion also linked to rising greenhouse gasemissions and the destruction of some of the mostbiologically diverse are on earth. Some of climateextreme phenomenon including forest fire and haze thatcovered few Southeast Asia Countries is linked with landactivity-based of this sector. Growing awareness ofthese issues has prompted call for palm oil companiesto rethink the way they operate their production process.

Sustainable Palm Oil Issuesand range of works

Indonesia Palm Oil Pledge (IPOP), an initiative fromIndonesia to Indonesia in enhancing collaborationtowards the transformation of Indonesia's palm oil.

The global market is becoming very relevant toIndonesia since the majority of CPO production is usedfor export including domestic market formed for theabsorption of long-term product. Indonesiancompetitors (including China and India today beganproduction) also lead to the implementation ofsustainable practices. If Indonesia is not prepared, it willpotentially lose the state’s economic benefit, as well associal and environmental.

Signed by five major palm oil companies with the scopeof operations in Indonesia, IPOP aimed to improve thecompetitiveness of Indonesian palm oil bothdomestically and globally through the development ofsustainable practices. IPOP reflects the company'scommitment as a representative of the private sector tocollaborate with key stakeholders such as government,

civil society, oil palm farmers and communities inresponding to those issues. IPOP using the basicprinciples of each its member companies sustainabilitycommitments to bind in the collective elements.

The implementation of IPOP member companies’commitment will be embarked on a journey oftransformation through several phased approach inaccordance with the timeline fulfillment of commitmentsentered by each company. This approach is expected togive each company an opportunity to engage, supportand inspire companies and oil palm farmers in the entiresupply chain to the sustainability commitments. It canalso be a model that could be developed for otherstrategic commodities in Indonesia.

The market mechanism provides an opportunity forbuyers and consumers to determine the choice ofproducts. The option can be applied to the type ofproducts and countries. IPOP commitment begins toaddress these issues and received positive responsesfrom the buyers and consumers. Consistentimplementation of this commitment will give Indonesia ahigher competitiveness and stronger negotiation skills inthe global market dialogue (including the relatedvaluation of sustainable practices and its relationship tothe price).

IPOP programs and activities as implementation ofthe commitment

In the initial phase, IPOP will conduct assessment on theimpact expected to be realized from a more strategicplanning, conducting major infrastructure developmentas an initial process of reforming major policy changesin the oil palm sector, implementing program initiativesin three main provinces of IPOP implementation namelyAceh, Riau and Central Kalimantan and also conductingthe process of monitoring, evaluation and verification onthe outcomes. IPOP work in areas which aresummarized into four pillars of the organization, theyare:

•To improve leadership in environmentally friendlyproduction practices, business chain, as well asmanagement and processes.

•To strengthen policy and regulatory framework.

•To extend social benefits to small farmers, localcommunities and indigenous peoples.

•To increase the competitiveness of the Indonesianpalm oil as a whole.

IPOP work plan will be implemented throughengagement and dialogue with various parties to bearjoint initiatives as well as to continue the existingprogram, which is done in full awareness by themembers and partners, thus providing significantimpact. IPOP work program will includes:•Development of major infrastructure: implementingIPOP management and structure, profiling IPOP,make rules to guide members and developingstrategic plans.•Establishing a monitoring system, evaluation andreporting of the members’ commitmentimplementation: create a knowledge managementsystem, create a mechanism for reporting andevaluation, create guidelines and verificationsystem for partners.•Reforming policies and regulations: anti-competition laws, abandoned land-relatedregulations in HCS/HCV, certification and smallfarmers, and so on.•Collaborative Program: One Map Program in Riau,Program One Map in Central Kalimantan, andImplementation of Monitoring and Evaluation (M &E) Commitment in Aceh.•Communication and cooperation with stakeholdersand partners: the existence in online media(website, social media), internal and externalcommunications, campaigns for consumers, andstakeholder’s roundtable discussion.

Sustainable Palm Oil Issues

Page 7

www.palmoilpledge.id

Starting Point

Transformation in Progress

Scale Up

Towards Sustainable Palm

Oil Sector

Journey towards Sustainable Transformation

IPOP Mgt

Cargill

Wilmar

Musim Mas

GAR

KADIN

Asian Agri

Roles IPOP Management: Monitor the Pledge and Implement Programs

In the commitment implementation, IPOP will certainly affect the workings of the entirestakeholder in the supply chain, including palm oil growers (PKS). It is the IPOP companymembers’ commitment to prioritize the welfare and improvement of the capacity of thesepalm oil growers to be able to maximize its potential by implementing sustainableagricultural practices.

IPOP management and member companies understand that palm oil growers need a fullsupport to enhance their capacity and capability in sustainable agricultural practices.IPOP will continue to develop these programs by collaborating with organization partnerssuch as Serikat Pekerja Kelapa Sawit (Palm Oil Farmers Union, SPKS) and KelompokKontak Tani Nelayan Andalan (KTNA) for the implementation of the program on priorityareas. At this early phase IPOP will work together with many parties to be able to compilethe lesson learnt and best practices of sustainable palm oil industry in Indonesia andcommunicate them to the outside world. This lesson learnt will help IPOP replicate IPOPcommitment to a broader scale in the next phase.

Page 8

www.ibcsd.co.id

IPOP Mgt

Cargill

Wilmar

Musim Mas

GAR

KADIN

Asian Agri

Discussing the findings of EEB Laboratory in Jakarta

The EEB's report Transforming the Market: EnergyEfficiency in Buildings from the World BusinessCouncil for Sustainable Development (WBCSD),shows how energy use in buildings can be cut by 60percent by 2050 – essential to meeting global climatechange targets – but this will require immediate actionto transform the building sector.To achieve an energy-efficient world, governments,businesses and individuals in their private andprofessional lives must transform the building sector,which today accounts for 40% of the world's energyuse. A multitude of actions are necessary toaggressively reduce energy consumption in new andexisting buildings. Necessary changes cannot andwill not come through market forces alone.As part of sustainability effort, IBCSD together withthe Green Business Council Indonesia (GBCI) andWBCSD held Energy Efficiency Laboratory in Jakartaon 29-30 July 2015.Companies, association, university, government,research institution, bank, and consultant wereinterviewed to get some finding in understanding thebarriers to lower energy use in building.

As the output, some key findings and possiblesolutions are categorized in awareness, workforcecapacity, financing, and policy and regulation. Thefindings were also presented in Technical CommitteeMeeting of the 3 EEB labs that was held in 1September in Singapore, collecting result from EEBLab in Indonesia, Singapore, and Malaysia. Themeeting also develop action plan for each country.The report of the EEB Lab will be disseminated in alaunching event of the action plan that is planned to beheld in November 2015.As the action plan and recommendation forIndonesia, a platform will be established to lead theimplementation of the action plan. IBCSD will gatherits member companies and build partnership with thestakeholder (government, professional association,business organization, and industry) to lower energyuse in building for the implementation of the actionplan.

Save the Earth by Lowering Energy Use inBuildingTo achieve an energy-efficient world, governments, businesses and individuals in their private and professional lives musttransform the building sector, which today accounts for 40% of the world's energy use.

Page 9

www.ibcsd.co.id

Solution to Forest Fire & HazeProblem

Tackle the Deforestation in Riau, Government Need to Provide IntensiveCooperation between the NGOs, Corporations and Small Holders

Regulations regarding for the use and management of forests in Indonesia havenot been supported by a strong legal certainty. As mentioned in the GovernmentRegulation (PP) No. 61 of 2012 (2) Article 4 that there is an agreement on theprinciple of the use of forests for the benefit of development outside forestryactivities. According to this regulation, the practice of deforestation in forestarea automatically becomes legitimate to run.In addition to the PP, Act No. 39 of 2014 on Plantation presents a dilemma forthe private sectors as actor perform forestry development through non-forestryindustry, such as industrial estates. (Continued to page 3)

During this time, appeal to reject the deforestationfor the sake of the preservation of the forest environmentencouraged by the government but the law is actually atodds with the commitment free deforestation of forestareas used as plantation land.

Then glanced at the palm oil industry that isregarded as the trigger haze case of Riau in 2015,basically there is the same dilemma of the parties privatesectors in the field of palm oil in which they were allowedto use all the land that they have to plant oil palm, so theycan not allocate land for conservation purposes. It isbased on what is stated in the Act No. 39 on Plantations.

Even though palm oil industry players in Riau havebeen doing incentives in an effort to maintain theharmony with the environment through the componentcertificate of ownership obligations of IndonesianSustainable Palm Oil System (ISPO) and theRoundtable on Sustainable Palm Oil (RSPO) since thebeginning of 2015. So that the palm oil companies inRiau, mostly, have been working under ISPO and RSPOstandards.

Cooperation between the Government, NGOs,Corporations, and Small Holders

The dilemma felt by the private sectors of palm oilin Riau emerged as regulations issued by thegovernment for the events leading to the use of forestsas oil palm plantations have not been clearly synergizedwith the all stakeholders. Finally, ambiguity over theinterpretation of the rights and obligations on theutilization led to recriminations between the variousparties.

The Government should not only work alone toachieve the purpose of forest use in Riau but must holdall stakeholders are like NGOs, cooperation and evenlocal communities. This serves to equalize theperception of the purpose and the use of forests as palmoil area and what needs to be done to avoid thedeforestation.

Page 10

www.ibcsd.co.idPage 11

About IBCSD

The Indonesian Business Councill for SustainableDevelopment (IBCSD) is a CEO led association ofcompanies operating in Indonesia, who share acommitment to promote sustainable economic growth,

ecological balance and social progress.

To learn more about IBCSD membership, please contact:info@ibcsd.or.id

Follow us on

Twitter: @IBCSD2011

Facebook:IBCSDIndonesia Business Council for Sustainable Development

Menara Duta Building, 7th Floor Wing BJl. HR. Rasuna Said Kav B-9, Jakarta 12910

Phone : (+6221) 5290-1941-42Fax : (+6221) 5290-1949

great days

There's something

IF every man on earth

try forat least

one idea for recycling,We believe we can achieve more happiness in the future.

Knowing the fa

ct that alum

inum can takes 90years to break down, a plastic bottle takes 700 years to break down,

and a glass bott

le takes 1 million years to

break down. A simple act of recycling can end a vicious cycle of earth

degradation. So, will you?

about nature ...

.......we can't live

wastefully muchlonger, think

sustainable to makeour future stronger.