AGENDA

Driving Biodiversity-Based Economic Transformation, Earth-Centered Economy Coalition Launched

JAKARTA, investor.id - Earth-Centered Economy Coalition/ Koalisi Ekonomi Membumi (KEM) encourages biodiversity-based economic transformation at the Katadata SAFE 2024 event which took place on August 7-8, 2024 at the Hotel Indonesia Kempinski Jakarta. As an initiative launched during Indonesia's G20 presidency in 2022, KEM aims to accelerate the growth of a sustainable investment ecosystem centered on Indonesia's local wisdom. This event was an important momentum for KEM as it began its official relaunching agenda. In this session, KEM introduced its vision and mission in supporting an inclusive alternative economic model, which focuses on environmental restoration through the downstream value of biodiversity in Indonesia. Koalisi Ekonomi Membumi (KEM) plays a key role in steering Indonesia's economic transformation towards a restorative economic model. In line with Indonesia's Draft National Long-Term Development Plan 2025-2045, economic transformation through restorative downstreaming of biological resources is a form of implementation in the fields of green economy, blue economy, and bioeconomy. This approach incorporates the principles of environmental sustainability in every aspect of planning and implementing economic activities along the value chain. One of the concepts underpinning this transformation is the bioeconomy, which makes sustainable use of living natural resources to produce a range of products and services. With a focus on the use of biomass and innovative technologies, the bioeconomy has the potential to accelerate the transition to a low-carbon economy, reduce dependence on non-renewable natural resources, and open up new opportunities for green growth. In addition, KEM also facilitated a Coaching Clinic on August 8, 2024, in collaboration with KoinWorks to organize a workshop on the Sustainable Investment Guidelines (PIL). The guide launched by the Ministry of Investment/BKPM at the G20 momentum is the forerunner of KEM. The workshop aims to improve financial literacy and enterprise impact management skills from a business and investor perspective, with a focus on MSMEs and startups. The PIL will be an important tool for participants to assess and implement sustainable business principles in their operations, making them active contributors in sustainable economic growth. Gita Syahrani, Head of the Executive Board of KEM, revealed that based on data from the Ministry of Investment, currently 91 percent of Indonesia's downstream investment targets the mineral, coal and oil and gas sectors. This means that less than 10 percent is invested in the biological resource development sector. "We are looking for an equilibrium by increasing downstream diversification in nature-based sectors with restorative economic principles," said Gita. Based on the CELIOS study, restorative economic principles can bring several benefits, including mitigating climate change, reducing dependence on non-renewable resources, protecting biodiversity, and supporting economic growth and creating jobs. KEM is committed to encouraging the concept of restorative economy through three main targets, namely 100 districts committed to sustainability, 100 sustainable businesses, and access to funding of up to 200 million dollars along the sustainable value chain.   Gita added that since KEM started its initiative in 2022 to date, 38 out of 71 committed districts have received technical assistance in preparing planning documents. A total of more than 400 businesses have been reached and received assistance so that they can access funding of up to 35.5 million dollars of funding and transaction valuation. "The 8 percent economic growth that is Indonesia's target for 2025-2029 is optimistic that it can be achieved through the contribution of all parties in working together to build a sustainable business ecosystem in the biodiversity innovation value chain," she concluded. This article was published on investor.id on August 9, 2024, with the title "KEM Pacu Ekosistem Investasi Berkelanjutan", https://investor.id/macroeconomy/369615/kem-pacu-ekosistem-investasi-berkelanjutan Editor: Theresa Sandra Desfika (theresa.sandra@investor.id)