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Protecting Indigenous Rights with HCV and FPIC in RSPO, ISCC, and FSC Certifications The involvement of indigenous communities is a cornerstone of sustainable development, particularly in sectors closely linked to natural resources. As stewards of ecosystems, these communities hold invaluable traditional knowledge and have long upheld a balanced relationship with their environment. To ensure their rights and contributions are respected, frameworks like High Conservation Value (HCV) and Free, Prior, and Informed Consent (FPIC) are increasingly integrated into global sustainability certifications, including RSPO (Roundtable on Sustainable Palm Oil), FSC (Forest Stewardship Council), and ISCC (International Sustainability & Carbon Certification). Understanding HCV and FPIC The HCV framework  identifies and safeguards areas with critical environmental, social, and cultural significance. Among its six categories, two are particularly relevant to indigenous communities: HCV 5 — Community Needs : Covers areas that are essential for the basic needs of local communities, such as sources of food, water, or livelihoods. These protections are crucial for preserving indigenous lifestyles. HCV 6 — Cultural and Spiritual Values : This category refers to areas of high cultural, spiritual, or historical importance to communities. Protecting these areas helps maintain the heritage and identity of indigenous groups. The FPIC principle ensures that Indigenous peoples are meaningfully engaged in decisions about projects impacting their land, resources, or rights. This principle encompasses inclusive dialogue, repeated consultations, and free decision-making without coercion. It is fundamental to ethical practices in industries such as forestry, agriculture, and bioenergy, aligning with broader efforts to achieve environmental and social justice. Sustainability Certifications and Indigenous Rights Sustainability certifications play a pivotal role in aligning industrial activities with environmental, social, and cultural principles: RSPO  integrates FPIC principles specifically to ensure that indigenous communities are actively involved in decisions regarding palm oil plantations. It also emphasizes the identification and protection of HCV areas before plantation development begins. FSC  promotes responsible forest management, which includes recognizing indigenous rights to land and resources while preserving cultural heritage. ISCC , while primarily focused on sustainable biomass and carbon management, incorporates FPIC to assess the social and environmental impacts of supply chains on local and indigenous communities. By embedding HCV and FPIC into their standards, these certifications validate a company’s commitment to sustainability and demonstrate respect for indigenous rights. This integration enhances the credibility of certified organizations in global markets while promoting equitable and environmentally sound practices. Legal and Policy Support in Indonesia Indonesia provides a robust legal framework for protecting indigenous rights, complementing global certification standards. Notable examples include: Constitutional Court Decision No. 35/2012 , which formally recognizes indigenous forests. The Draft Law on Indigenous Peoples aims to further safeguard indigenous rights and integrate their perspectives into national development initiatives. These policies underscore the importance of recognizing and empowering indigenous communities in achieving sustainable development. The Role of Collaboration in Sustainable Development Sustainability is a collective endeavour that requires the active participation of governments, private sectors, NGOs, and Indigenous communities. By adhering to the principles of HCV and FPIC, industries can adopt a balanced approach that integrates economic growth with environmental conservation and social equity. Key collaborative strategies include : Government Support : Establishing policies that align with global standards and ensuring their enforcement at local levels. Private Sector Commitment : Investing in sustainable practices that respect the rights of indigenous communities. NGO Involvement : Facilitating capacity-building initiatives to empower indigenous groups. Community Participation : Leveraging traditional knowledge and engaging indigenous voices in decision-making processes. Conclusion: A Call to Action Indigenous communities are not just stakeholders but essential partners in sustainability. Their stewardship of natural ecosystems and unique cultural perspectives are invaluable assets in creating a harmonious balance between development and conservation. Integrating FPIC and HCV principles into global sustainability certifications like RSPO, FSC, and ISCC is both a moral imperative and a practical step toward achieving long-term environmental and social equity. It is now up to stakeholders—from policymakers to private enterprises—to embrace this collaborative journey. By doing so, we can establish a future where economic progress and ecological integrity coexist, ensuring that both people and the planet thrive.

The food and beverage industry in Indonesia experienced remarkable growth of 10.17% in Q2 2024, according to the Central Bureau of Statistics (BPS). This growth underscores the sector’s potential, further reflected in the international-scale SIAL Interfood 2024 , held from November 13–16, 2024, at Jakarta International Expo, Kemayoran. Southeast Asia's Largest Food Expo: What to Expect SIAL Interfood 2024 features over 1,200 exhibitors from 25 countries , including Indonesia, Thailand, Singapore, and the United States. The event also provides a platform for 150 local SMEs  to showcase their flagship products. The expo highlights various sectors, including: Food and beverages. Catering services. Hotels, restaurants, and cafes (HORECA). Bakery. Visitors will also benefit from co-located events, such as: Seafood Show Asia Expo 2024. All Indonesia CoolTech Expo 2024. INAShop Expo 2024. Highlight Programs at SIAL Interfood 2024 This event goes beyond exhibitions with engaging programs, such as: La Cuisine Cooking Competition : Featuring nearly 1,000 participants from various countries. SIAL Innovations Awards : Recognizing innovative food and beverage products. Business Matching : Connecting producers, distributors, and international buyers. Indonesia Coffee Art Battle : Celebrating coffee artistry with top baristas. Additionally, seminars, workshops, and talkshows enrich the event: Talkshow Tea for All Generations  by the Indonesian Tea Association (ATI). FGD Down-Streaming of Indonesian Seaweed  by ASTRULI. Commitment to Innovation and Global Collaboration Krista Exhibitions , the event organizer, ensures this exhibition serves as a hub for innovation and collaboration between local and international businesses. CEO Krista Exhibitions, Daud D. Salim, emphasized the strong support from various ministries and prominent associations to boost Indonesia’s food and beverage industry competitiveness. PT Bionic Natura: Showcasing Organic Excellence at SIAL Interfood 2024 Our esteemed client, PT Bionic Natura , participated in the event to showcase their organic products. Our team was on-site to support and witness their remarkable innovations. PT Bionic Natura’s presence added a fresh perspective to the exhibition, demonstrating a strong commitment to sustainability and excellence. SIAL Interfood 2024: A Strategic Platform for National Food Security This event not only facilitates the exchange of innovation but also strengthens national food security through cross-sector collaboration. With an expected 90,000 visitors , SIAL Interfood 2024 offers an unparalleled opportunity for industry players to expand their networks and boost global competitiveness.

RSPO RT 2024 Bangkok: Background on the 21st General Assembly Bangkok – The 21st General Assembly of the Roundtable on Sustainable Palm Oil (RSPO-RT), held from November 11-13, 2024, in Bangkok, marked a significant milestone with the adoption of the revised RSPO Principles and Criteria (P&C) 2024 and the updated Independent Smallholder (ISH) Standard. The event brought together stakeholders from various sectors, including companies, NGOs, and smallholder representatives. Objectives and Key Focus of the New Standards The updated standards aim to enhance clarity, auditability, and implementation while integrating the PRISMA digital certification system for improved efficiency. Developed over two years with input from smallholders, NGOs, auditors, and regional experts, the new standards will take effect after a 12-month transition period, providing members ample time to adapt. Key Updates in the RSPO 2024 Standards The revised standards introduce several significant updates: Enhanced HCV-HCS Framework  – Clearer guidelines for implementing the High Conservation Value-High Carbon Stock (HCV-HCS) framework ensure responsible land use. Mandatory Human Rights Due Diligence  – Companies must now conduct due diligence to identify and address human rights impacts. New Water Management Indicators  – Address future challenges related to water scarcity. Impact and Implementation The revisions are designed to strengthen compliance and streamline auditing processes. RSPO Chief Executive Joseph D'Cruz emphasised that the new standards aim to facilitate the effective and efficient implementation of sustainable practices across the industry. Partnership with High Conservation Value Network (HCVN) During the assembly, RSPO renewed its partnership with the High Conservation Value Network (HCVN) to promote the protection of high-value ecosystems and forests. As of 2023, RSPO certification has safeguarded more than 646,700 hectares of high-conservation-value forests globally. Peterson Indonesia’s Commitment to Smallholders Peterson Indonesia, represented by Mr. Nurhadi, reaffirmed its dedication to supporting smallholders as a key component of sustainable supply chains. The company highlighted the indispensable role of smallholders in achieving sustainability within the palm oil industry. Peterson Indonesia’s initiatives, including certification programs and training, aim to help smallholders access broader markets, secure competitive pricing, and enhance their livelihoods. These efforts are expected to drive sustainable local economic growth and strengthen the industry's overall commitment to equitable development.

PCU Asia Meeting 2024 Jakarta, Indonesia  – Held from 25–27 September 2024, the PCU Asia Meeting 2024 in Jakarta gathered over one hundred professionals from Asia and beyond in an invaluable event focused on cross-regional collaboration and strategic updates. For two and a half packed days, participants engaged in sessions designed to strengthen connections and drive a shared vision for a stronger future. The meeting featured sessions spanning a variety of themes, from presentations by RT Asia and updates from RT EMEA and RT Americas to insights from guest speakers. Smaller breakout groups provided opportunities for in-depth discussions on Asia-specific operations and challenges, all geared towards optimising synergies through Control Union Centers of Excellence (CoE) and Peterson Solutions. Driving Regional Efficiency through Collaboration Guided by RT Asia, the event underscored the importance of close collaboration to enhance efficiency across the region. Cross-border teamwork facilitated the exchange of valuable local insights and enabled the effective sharing of resources and expertise. This meeting’s main focus on quality and innovation reinforced these essential elements as a foundation for navigating changing market dynamics. RT Asia also addressed feedback from last year’s event by extending time for discussions to ensure that every idea and initiative could be thoroughly explored. A rigorous monitoring process was implemented to ensure that each commitment made during the meeting would be responsibly executed and tracked. The Peterson Indonesia Team and Asia’s Leading Experts A key highlight was the presence of the Peterson Indonesia team, with Principal Consultant Nurhadi and his consultancy team—Fitri Irianti, Ester Dani Prasetiyani, Klaudia Historia Kleden, and Aginta Alfadara Restiana—actively contributing across sessions and discussions. Esteemed experts from Asia, such as Kazumi Watanabe (Managing Director, Peterson Solutions Japan), Kevin Edmunds (Regional Manager, Asia), Ji Hyoung (Fred) Kim (Managing Director, Peterson Solutions Korea), Sebastian Merten (Managing Director, Peterson Solutions Thailand), Debopriya Bhattacharyya (General Manager, Peterson Solutions India), and others were also present. Their involvement underscored Peterson's regional representation and fostered valuable cross-national knowledge sharing, crucial for tackling Asia’s unique market challenges. Commitment to Sustainable Business Growth and Collective Excellence During a dedicated session attended by leaders from Control Union CoEs and Peterson Solutions, each country presented its strategic plans for sustainable business growth. Through innovative ideas and structured initiatives, these leaders outlined steps to enhance collective capabilities, with performance monitoring through KPIs to ensure each launched initiative achieves its intended outcomes. Celebrating Achievements at the Awards Ceremony The highly anticipated awards ceremony celebrated outstanding achievements within the organisation. Special accolades like the Most Supportive Country and Finance Award honoured notable contributions, while long-service awards recognised individuals whose loyalty and dedication continue to inspire. These awards were not only a moment of celebration but also a motivation for all members to pursue excellence with renewed vigour. Team Building and CSR Activities Reflecting Social Responsibility As part of the meeting, participants enjoyed a team-building activity by creating terrariums, encouraging creativity and team spirit. The programme also featured a corporate social responsibility (CSR) initiative involving textile waste management for the disabled community. In partnership with Sebumi Indonesia, this activity demonstrated PCU's commitment to social responsibility and community empowerment. “Diversify to Thrive” – Embracing Innovation and Sustainable Growth This year’s theme, "Diversify to Thrive: Driving Excellence through Quality and Innovation," reinforced the organisation’s commitment to expand strategies for adapting to market changes. By embracing diversification and innovation, participants aimed to strengthen market positioning, respond to new challenges, and foster sustainable growth. This vision aligns with the theme of the recent World Meeting, reinforcing a shared goal of expanding operational reach globally. Closing with a Spirit of Collaboration and Innovation PCU Asia Meeting 2024 successfully fostered a spirit of collaboration and innovation among colleagues from diverse regions. The connections and insights developed during this event will form a crucial foundation for future strategies and initiatives. With renewed resolve, participants are ready to face future challenges, build synergies, and drive innovation in the ever-evolving industry landscape.

AI for Environmental Sustainability With increasing demands for sustainable business practices, advanced technologies like artificial intelligence  (AI) and nature intelligence  are emerging as essential solutions. These innovations help companies manage environmental impact and improve transparency in sustainability reporting, aligning with stricter regulatory requirements. Integrating AI with nature intelligence  allows companies to move beyond simple carbon reporting, offering a comprehensive approach to managing their environmental footprint. Why Nature Intelligence and AI are Crucial for Sustainability Nature intelligence  is a concept that involves using advanced environmental data such as environmental DNA, acoustic technology, and satellite imagery to monitor the ecosystems surrounding business operations. Combined with AI, companies can efficiently manage this data, facilitating environmentally conscious decision-making. While AI plays a vital role in data collection and forecasting, nature intelligence  provides deep insights into ecosystem health​. Positive Impacts of Integrating Technology into SR Using AI and nature intelligence  also helps companies comply with increasingly stringent sustainability reporting standards, such as those enforced by the European Union. This technology focuses not only on carbon reduction but also on biodiversity conservation and mitigating adverse impacts on natural habitats. By utilizing AI to analyze environmental data in real-time, companies can report transparently and accurately, preventing greenwashing ​. Case Study: Implementation in High-Impact Industries In high-impact industries like transportation and manufacturing, AI and nature intelligence  have proven effective in reducing emissions and monitoring biodiversity around operations. For instance, by combining satellite data and AI, companies can monitor environmental conditions around their operational areas and respond proactively to ecological changes​. Long-Term Benefits for Businesses Integrating AI and nature intelligence  not only helps companies meet regulatory requirements but also enhances operational efficiency. With more accurate data, companies can plan sustainability strategies that are both effective and enduring. This approach not only positively impacts the environment but also strengthens the company’s reputation as a sustainability leader in the eyes of customers and investors. Conclusion Technologies like AI and nature intelligence  will play a crucial role in the future of business sustainability. Through these tools, companies can be more accountable for their environmental impacts, meet regulatory demands, and even gain operational advantages. Therefore, the implementation of AI and nature intelligence  is a beneficial strategy for both businesses and the environment.

IPOC 2024: Palm Oil Opportunity in Global Markets The Indonesian Palm Oil Conference (IPOC) 2024 is being held once again from 6–8 November in Bali, Indonesia. As one of the largest and most significant forums for the palm oil industry, IPOC 2024 brings together global stakeholders to discuss the challenges and opportunities facing the sector. Under the theme "Seizing Opportunities Amidst Global Uncertainty,"  this year’s conference aims to establish strategies and policies that can support the sustainability of the palm oil industry amidst global market volatility and environmental challenges. Indonesia’s palm oil industry plays a vital role in the global market, accounting for around 41% of total global palm oil production. However, significant challenges, both domestic and international, require collaboration to find solutions that can maintain this industry's competitiveness and sustainability. Challenges Facing the Palm Oil Industry Sustainability and Environmental Regulation Sustainability remains a key issue of global concern. The palm oil industry is often linked to deforestation, loss of wildlife habitats, and other environmental impacts. While numerous sustainability initiatives have been introduced, such as the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO), the greatest challenge remains effective implementation on the ground. The European Union Deforestation Regulation (EUDR), which took effect in 2023, has added pressure on the industry. EUDR requires products like palm oil to be proven deforestation-free, pushing palm oil producers to improve traceability and transparency throughout their supply chains. This will be one of the main issues at IPOC 2024. In Session 2: Implementation of EUDR: Opportunities & Challenges  on 7 November, discussions will focus on how EUDR impacts companies and smallholder farmers, as well as the policy's effects on global palm oil supply and demand. Speakers such as Rizal Affandi Lukman from CPOPC and Ian Suwarganda from Golden Agri-Resources will provide insights into these regulatory challenges. Market Volatility and Global Economic Uncertainty In addition to environmental concerns, the Indonesian palm oil industry must also navigate market volatility influenced by geopolitical tensions and shifts in international trade policies. Palm oil prices are often unpredictable, and political uncertainty, such as the Ukraine conflict and tensions in the Middle East, can affect global supply and demand. The bioenergy sector, particularly the demand for biofuels, presents a promising opportunity for expanding palm oil markets. IPOC 2024 will allow participants to explore this new market potential, with hopes of advancing the sustainability of the palm oil industry. Session 4: Economic Outlook and Market Trends  on the second day will discuss palm oil price projections and global market trends, including EUDR’s impact and supply and demand dynamics in major markets such as the EU, China, and India. Analysts like Thomas Mielke and Julian McGill will offer perspectives on palm oil pricing in 2025, a topic relevant to the volatility and global policy impact addressed in this article. The growing demand for biofuel and the opening of new markets for palm oil will be a topic in Session 1: New Government Policy on Mandatory Program of Biofuel,  led by Edi Wibowo from the Ministry of Energy and Mineral Resources, who will address Indonesia’s biofuel mandate. This reflects opportunities to bolster the Indonesian palm oil industry’s competitiveness in the global market, especially in connection with advancing energy and biofuel policies. Innovation in Plantations and Technology One of the keys to overcoming stagnant production and enhancing sustainability is innovation in technology and plantation techniques. Topics such as crop breeding, the use of drones and sensors for monitoring plant health, and product traceability are all significant at IPOC 2024. These technologies can help boost productivity and reduce negative environmental impacts, as seen in the urgent replanting initiatives. Such innovations will play a major role in increasing Indonesia's palm oil industry competitiveness in the global market. In Session 1  on 7 November, Advancements of Research and Development on Oil Palm Productivity  led by Edy Suprianto from PIPPSI will address these topics. The focus on productivity improvements through innovation will also help mitigate the environmental impacts of the palm oil industry. IPOC 2024: Finding Collaborative Solutions for Sustainability Stakeholder Dialogue One of IPOC’s main strengths is its ability to bring together governments, industry players, and non-governmental organisations to discuss policies that promote sustainability. IPOC 2024 will include discussions on how Indonesia’s palm oil industry can tackle international regulatory challenges, improve product traceability, and comply with sustainability standards. This gathering also offers participants a chance to share experiences and best practices that can be applied within the Indonesian market. Formulating Joint Strategies for Sustainability IPOC 2024 is also expected to serve as a platform to develop concrete steps that can enhance the competitiveness of Indonesia's palm oil industry globally. This includes government policies that support industry growth by facilitating investments in environmentally friendly technology and support for smallholder farmers in implementing sustainability standards. Recommendations from the conference will provide clear guidance for the industry and government to address the challenges ahead. Conclusion IPOC 2024 provides a rare opportunity to strengthen collaboration between government, industry, and civil society to find sustainable solutions for the palm oil industry. In the face of significant challenges such as stringent environmental regulations, market volatility, and geopolitical uncertainty, this conference represents a crucial moment to establish policies and strategies that can address these issues. The success of IPOC 2024 will be measured not only by the discussions it generates but also by the tangible implementation of solutions for a more sustainable future in the palm oil industry. 4o

Greenwashing Cases Decline A significant development in the sustainability landscape has been noted, as RepRisk's latest report reveals a 12 percent decline in global greenwashing cases between June 2023 and June 2024 across all sectors. This marks the first drop in greenwashing incidents in the last six years, signalling a shift towards greater caution by companies when communicating their environmental claims. Alexandra Mihailescu Cichon, RepRisk's Head of Commercial, stated that companies are becoming more mindful of how they convey not just their environmental efforts but also their broader ESG initiatives. However, despite the overall decrease, the report highlights new challenges. Of the 1,841 misleading communication incidents documented, 56 percent were classified as greenwashing. Private companies were responsible for 70 percent of these greenwashing cases, while public companies accounted for the remaining 30 percent. Philipp Aeby, CEO of RepRisk, emphasized that stakeholders are now more aware of the reputational risks posed by greenwashing than ever before. The Rising Severity of Greenwashing Cases While the overall decline is encouraging, the report also found an increase in the severity of greenwashing cases. Thirty percent of companies involved in greenwashing incidents between 2022 and 2023 were repeat offenders in 2024. In the United States, 42 percent of companies implicated in greenwashing in 2023 were once again cited in the 2024 report, indicating a pattern of systemic violations. The oil and gas sector continues to be the industry most frequently associated with greenwashing claims, representing 22 per cent of the total cases. Although this sector has been a consistent offender since 2019, 2024 saw increased scrutiny on food and beverage companies concerning their sustainability claims. Additionally, the banking and financial services sector, which had experienced a 70 per cent surge in greenwashing cases in previous years, saw a 20 per cent decline in 2024. Peterson Indonesia: Commitment to Transparency and Anti-Greenwashing As a sustainability consultancy, Peterson Projects and Solutions Indonesia strongly opposes any form of greenwashing in sustainability reporting. We believe transparency is paramount to sustainability efforts. When producing sustainability reports, companies must ensure their claims genuinely reflect the actions they are taking, rather than merely engaging in reputational window-dressing. We also acknowledge the risk posed by "greenhushing," a practice where companies withhold or conceal information about their environmental efforts to avoid scrutiny. While increased regulation and oversight may help curb greenwashing, it is crucial that companies remain forthcoming in reporting their sustainability actions comprehensively. With the growing awareness among stakeholders and the public about the risks of greenwashing, we at Peterson Projects and Solutions Indonesia will continue to support companies in ensuring that their sustainability reports reflect genuine, transparent, and honest actions. Interested in our sustainability services? Contact us by clicking that link or email us to marketing.indonesia@onepeterson.com

Sustainable finance has become a critical component in the global transformation towards a greener, more resilient economy. As the threat of climate change becomes increasingly urgent, the financial sector plays a vital role in supporting this transition. By redirecting financial flows away from unsustainable activities and towards climate-resilient business models, financial institutions can significantly contribute to achieving the Sustainable Development Goals (SDGs) and preserving natural capital. Why Are Nature and Sustainable Economics Interconnected? Nature provides various ecosystem services that are crucial to the functioning of the economy, such as pollination, water quality management, and protection against floods and storms. All economic sectors depend on these natural services. However, environmental degradation can disrupt these vital services, posing significant risks for businesses and their investors. As global threats intensify, financial institutions must adopt policies that are not only economically profitable but also ensure the sustainability of ecosystems​. Transforming the Financial Sector The COVID-19 pandemic triggered a major shift in the global financial landscape. The pandemic’s wide-reaching impacts have dramatically increased the need for financing to achieve the SDGs, with the annual funding requirement rising from $2.5 trillion to $4.2 trillion​. In Indonesia, the funding gap to meet the SDGs is now estimated at Rp122 trillion, with a shortfall of Rp24 trillion to be addressed​. Despite these challenges, the global financial sector has significant capacity to meet this demand. With total assets under management reaching $379 trillion globally, allocating just 1.1% of these assets would be sufficient to cover the annual SDG financing needs worldwide. Indonesia’s Role in Sustainable Finance As a leader in Asia, Indonesia has demonstrated a strong commitment to sustainable finance through initiatives such as the issuance of SDG Bonds and Green Sukuk. These instruments provide a clear example of how financial tools can be aligned with sustainable development goals​. Indonesia’s SDG Bond framework, which has been independently reviewed, ensures that capital allocation not only supports economic objectives but also contributes to environmental preservation​. This progress has been further strengthened by recent legislation, including Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector. This law expands the definition of sustainable finance to include financing for the transition towards sustainable economic growth and the implementation of sustainable taxonomy​. The taxonomy serves as a guide for financial institutions to identify economic activities that support sustainability, ensuring capital flows towards environmentally friendly projects. The Green Taxonomy: A Pillar of Sustainable Finance in Indonesia Indonesia’s Green Taxonomy is a critical tool in advancing sustainable finance. This classification system helps investors identify projects or activities that contribute to sustainability. By providing clarity, the taxonomy minimizes the risk of greenwashing, where financial products are falsely marketed as environmentally friendly​. The implementation of the Green Taxonomy, which initially focuses on the energy sector, highlights Indonesia’s commitment to balancing the energy transition with economic growth. Renewable energy sources, such as solar and wind power, are receiving significant attention in this roadmap as the country strives to meet its net-zero emission (NZE) targets by 2060 or sooner​. Promoting Transparency and Accountability Indonesia’s sustainable finance framework is designed to ensure transparency and accountability. The impact reports for projects financed through green bonds or sukuk are reviewed by independent institutions, ensuring that investments genuinely deliver positive environmental and societal outcomes​. This transparency reassures investors that their funds are being allocated to truly sustainable projects. Conclusion Sustainable finance has become the backbone of the transition towards a low-carbon, environmentally friendly economy. Through initiatives such as the issuance of SDG Bonds, Green Sukuk, and the introduction of the Green Taxonomy, Indonesia has demonstrated a strong commitment to leading this change in the financial sector. With the global financial sector holding vast potential, Indonesia’s success in implementing sustainable finance can serve as a model for other countries to follow in the journey towards a greener, more resilient future.

Recycled Claim Standard (RCS) As the global shift towards sustainability accelerates, the focus on recycled materials becomes increasingly critical. The Recycled Claim Standard (RCS) is an international, voluntary standard designed to ensure third-party certification of recycled content and provide transparency throughout the supply chain. RCS aims to guarantee that products claiming to contain recycled materials genuinely meet those claims. Purpose and Benefits of RCS The RCS was created to boost the use of recycled materials across various industries. Its key objectives and benefits include: Harmonisation of Recycled Content Definitions RCS helps unify the definition of recycled materials across industries, making it easier for both businesses and consumers to understand what recycled content means in practice. Traceability of Recycled Inputs With RCS, recycled materials are tracked from the point of collection through to the final product, ensuring authenticity at every stage of production. Tools for Consumers and Brands RCS provides both consumers and businesses with reliable tools to make informed decisions about the products they use, based on verifiable recycled content. Assurance of Authentic Recycled Content The standard provides third-party verification to ensure that products truly contain the recycled materials they claim, reducing the risk of misleading marketing practices. Certification Process of RCS Every stage of production using recycled materials must be certified under the RCS, starting from the recycling process itself and concluding with the final business-to-business transaction. Both material collection and concentration sites are subject to self-declaration, document collection, and on-site inspections. Certification requirements extend to separating pre-consumer and post-consumer recycled content at each stage of production. Limitations of RCS While the RCS focuses on recycled content verification, it does not address the social or environmental impacts of manufacturing processes, product quality, or legal compliance. Moreover, it is a voluntary standard that does not override national regulations, meaning businesses must ensure they also comply with local laws related to product claims. The Importance of a Verified Chain of Custody One of the distinguishing features of RCS is its emphasis on the chain of custody, verified by independent third parties. Each entity in the production chain must prove that the recycled materials used in their products meet the defined standards of recycled content. Verification involves collecting declarations from recycled material suppliers and conducting periodic audits to ensure compliance. This structure promotes greater transparency between businesses and consumers, fostering trust in the claims made about recycled materials. Conclusion The Recycled Claim Standard (RCS) is crucial in promoting sustainability within the production sector. By encouraging the use of recycled materials and offering a reliable certification process, RCS helps businesses and consumers reduce the exploitation of natural resources. Although the standard has some limitations, its commitment to transparency and traceability of recycled content makes it a valuable tool in shaping a greener, more responsible future.

Future-Ready Aviation Strategies for Indonesia's Sustainable Growth The Indonesian aviation sector, a significant contributor to greenhouse gas (GHG) emissions, is set to undergo major regulatory changes. To align the aviation industry with sustainable environmental practices, the Ministry of Transportation is preparing to introduce stricter regulations to reduce GHG emissions. These changes were announced by the Minister of Transportation, Budi Karya Sumadi, during the Hub Talks  event titled "Future Ready Aviation Professionals, Strategies for Achieving Indonesia Emas 2045" , held at JIExpo Kemayoran, Jakarta, on Saturday, September 7, 2024. Transitioning to Green Aviation: Reducing Greenhouse Gas Emissions Minister Budi emphasized the critical role aviation plays in global GHG emissions. To address this, the Ministry is pushing for a transition from fossil fuels to more environmentally friendly energy sources. Implementing "green aviation" concepts and developing "smart airports" are seen as key steps in the government's strategy to reduce the aviation sector's environmental footprint. Minister Budi stated: "We at the Ministry of Transportation plan to strengthen sustainability regulations in aviation, ensuring that this industry not only grows economically but also aligns with environmental sustainability principles,"   Collaboration and Human Resource Development Aside from environmental concerns, Minister Budi highlighted the importance of collaboration and human resource development within the aviation sector. As Indonesia aims to build a competitive aviation industry for the future, the Ministry is focusing on upskilling aviation professionals through digital transformation, training programs, and certifications. Indonesia’s demographic advantage, with a large productive population, offers a unique opportunity to build a robust aviation sector. However, according to Minister Budi, the key to success lies in improving the quality of human resources through digital literacy and skill development. The Minister said: "With our demographic bonus, we have the potential to build a resilient and competitive aviation industry. The key is to enhance our human resources through upskilling and digital literacy,"   Strengthening Digital Infrastructure and International Cooperation Looking ahead, the Ministry plans to improve digital infrastructure at airports, enhance aviation services, strengthen international cooperation, and bolster policies that promote an innovative, efficient, and sustainable aviation ecosystem. These efforts align with Indonesia's broader vision for achieving Indonesia Emas 2045 , a future where the country thrives economically while maintaining its commitment to sustainability. Budi added: "These initiatives are part of our efforts to ensure the realization of Indonesia Emas 2045,"   Global Acknowledgement and Support from ICAO International Civil Aviation Organization (ICAO) President Salvatore Sciacchitano, speaking via video, praised Indonesia’s efforts to incorporate sustainability into its aviation industry. He also acknowledged Indonesia’s plans to develop a new, sustainable capital city, Nusantara, as a testament to its forward-thinking approach. Sciacchitano stated: "Indonesia's focus on smart and sustainable transportation is transforming the nation. It serves as an example for other countries, and ICAO is proud to collaborate with Indonesia,"  The ICAO President also noted Indonesia’s contributions to environmental protection, training programs for developing countries, and the presence of Indonesian aviation experts in the ICAO APAC Regional Office, all of which positively impact the aviation sector in the Asia-Pacific region. Enhancing Aviation Safety and Training Director of ICAO Asia-Pacific, Tao Ma, commended Indonesia for achieving a strong Effective Implementation (EI) score in the ICAO aviation safety audit. However, he emphasized the need for continuous improvement, especially in human resource development. According to Tao Ma, improving aviation safety in Indonesia hinges on providing continuous training for aviation professionals. Tao Ma remarked: "One of the key recommendations to enhance aviation safety in Indonesia is to focus on professional training,"

Indonesia International Sustainability Forum (IISF) 2024 The 2024 Indonesia International Sustainability Forum (IISF), officially inaugurated by President Joko Widodo on September 5, 2024, at the Jakarta Convention Center (JCC), showcased Indonesia’s commitment to addressing climate change and promoting sustainable economic growth. This event brought together stakeholders from around the globe, including the government, private sector, NGOs, and academics, to exchange ideas and collaborate on innovative solutions to combat climate challenges. President Jokowi’s Vision: Collaboration for Climate Action In his opening remarks, President Jokowi emphasized the need for a humanitarian and collaborative approach to effectively tackle climate change. He noted that economic-driven efforts focused on profits and individual interests would not be sufficient. Instead, partnerships between developed and developing nations must be strengthened to create a green economy that benefits not only the environment but also the prosperity of the people. Indonesia’s potential for green energy is vast, with over 3,600 gigawatts of potential renewable energy sources. The country’s investment in the floating solar power plant at Cirata Reservoir, the largest in Southeast Asia, exemplifies its commitment to renewable energy. Additionally, Indonesia’s vast mangrove forests, which cover 3.3 million hectares, play a crucial role in carbon sequestration, storing carbon 8-12 times more effectively than tropical rainforests. However, Jokowi underscored that global cooperation is essential to fully harness these opportunities. He urged developed nations to invest in green energy and share technology to ease the financial burden on developing countries. Foreign Minister Retno Marsudi’s Call for Green Investment On the second day of IISF 2024, Indonesian Foreign Minister Retno Marsudi highlighted the importance of green investment in her keynote speech. She emphasized that renewable energy is an environmental solution and a driver of economic growth. With Indonesia aspiring to be a part of the global shift towards a low-carbon economy, it actively uses diplomacy to promote sustainable development and global cooperation to achieve the United Nations’ Sustainable Development Goals (SDGs) and the Paris Agreement. Retno outlined three priorities for a sustainable future: Investing in Green Energy : The Just Energy Transition Partnership (JETP) and the Asia Zero Emission Community (AZEC) are among Indonesia's initiatives to promote green energy. She called for affordable green technology to be treated as a public good. Unlocking the Blue Economy : Indonesia’s Blue Economy Roadmap 2023-2045 aims to generate over USD 1.5 trillion and create 30 million jobs annually by focusing on sustainable industries such as aquaculture and downstream fisheries. Carbon Sequestration : As one of the largest tropical rainforest countries, Indonesia is pivotal in absorbing carbon emissions. The country has set ambitious targets to achieve net zero emissions by 2060 or earlier. Sustainable Forestry and Agroforestry One of the notable side events at IISF 2024 was Warung Nusantara (Warnus), which focused on promoting eco-friendly local Indonesian products. During this event, the Coalition for Earth Economics (KEM) and PT Amartha Mikro Fintek (Amartha) signed a Memorandum of Understanding (MoU) to develop microfinance programs in social forestry. This initiative aims to strengthen agroforestry systems in rural communities by providing microfinance access, building capacity, and enhancing digital financial literacy. The partnership will significantly impact social forestry sectors in regions like Bali Barat and Trenggalek. By empowering local farmers and entrepreneurs, the program will support inclusive and sustainable economic growth while fostering environmental conservation. The Importance of Cocoa Value Chain for Sustainable Growth Another key discussion at IISF 2024 centred around the cocoa value chain. As the third-largest cocoa producer in the world, Indonesia produces 700,000 tons annually, with 85% of the output exported as raw beans. The forum emphasized the need to move towards value-added processing, such as producing cocoa powder, butter, and chocolate, which could potentially increase export value to USD 3 billion annually. Over 90% of Indonesia’s cocoa production is managed by smallholder farmers using agroforestry methods. This sustainable farming approach supports carbon absorption, boosts biodiversity, and enhances farmers' resilience to climate change. Effective collaboration and capacity building are crucial for realizing the full potential of the bioeconomy in the cocoa sector. Moving from Extractive to Restorative Economies KEM reiterated the need to shift investments from extractive industries, such as oil and gas, to restorative economies. Natural-based innovations and bioeconomy models offer real solutions to environmental challenges while creating jobs and contributing to social welfare. Gita Syahrani, Chairperson of KEM, stressed that Indonesia’s future lies in building sustainable foundations through these restorative practices, which align economic growth with environmental protection. Conclusion The 2024 Indonesia International Sustainability Forum was a critical platform for fostering global collaboration in tackling climate challenges and promoting sustainable development. From President Jokowi’s call for humanitarian approaches to Foreign Minister Retno Marsudi’s emphasis on green investment and the significant initiatives in social forestry and agroforestry, IISF 2024 highlighted Indonesia’s role as a leader in sustainability. Through collective efforts and strategic partnerships, Indonesia is paving the way toward a greener, more inclusive future.

Energy Transition Investment by China China has positioned itself as a global leader in energy transition, making significant strides towards reducing its reliance on fossil fuels. As part of its ongoing efforts to reform the energy sector, China has made a historic investment of $676 billion (approximately Rp 10 quadrillion) in energy transition. This investment represents 38% of the world’s total energy transition spending, marking China's commitment to a sustainable future. China’s Energy Transition Goals On August 29, 2024, the National Energy Administration (NEA) of China released a white paper highlighting the country’s achievements and future plans in the energy sector. The white paper outlines China’s dedication to advancing energy storage technologies, promoting energy conservation, and fostering green energy cooperation under the Belt and Road Initiative (BRI). NEA Head Zhang Jianhua emphasized the importance of continuing to reform China's power system and called for market-oriented reforms. Investment and Global Leadership China’s investment in energy transition is unprecedented, with $676 billion poured into various initiatives aimed at reducing reliance on fossil fuels and expanding renewable energy sources. According to BloombergNEF, this investment accounts for 38% of the global total, solidifying China's position as a leader in the global energy transition. Renewable Energy Milestones China has set an ambitious target of installing 1,200 gigawatts (GW) of wind and solar power by 2030. Remarkably, the country achieved this goal in July 2024, six years ahead of schedule. This rapid expansion of renewable energy highlights China's commitment to achieving its energy goals and contributing to global sustainability efforts. Challenges and Future Ambitions Despite these significant achievements, China faces challenges in meeting other energy and environmental targets. For example, the country aims to reduce its carbon intensity by 18% over five years until 2030. To meet this goal, China must cut absolute emissions by 2% annually in both 2024 and 2025. The Deputy Director of the NEA’s Planning Department, Song Wen, has reaffirmed that China will not alter its carbon peak targets, despite these challenges. The Director of the NEA’s New Energy Department, Li Changjun, added that China will consider setting more ambitious renewable energy goals based on national conditions. Conclusion China’s substantial investment in energy transition underscores its role as a global leader in the fight against climate change. While challenges remain, China’s early achievement of its renewable energy targets and ongoing reforms in the energy sector signal a promising future for the nation and the world.