Home Blog The Future of Principles of Sustainability Economy in Indonesia Business Licenses | Business Setup | Company Registration | Indonesia The Future of Principles of Sustainability Economy in Indonesia InCorp Editorial Team 4 June 2025 4 minutes reading time Table of Contents Why is Sustainability The Future? Indonesia's Plan for Sustainability Economy The Challenges of Economic Sustainability Understanding Principles of The Sustainability for The Economy Alarms have been sounded for the last decade by international organizations. Many organizations are promoting narratives on the importance and urgency of making global progress, especially on the principles of sustainability. Why is Sustainability The Future? The threat of neglecting sustainability otherwise would be faced by the generations to come and even those already born. In 2015, the United Nations adopted the 2030 Agenda for Sustainable Development, which contains 17 Sustainable Development Goals (SDG). The SDG covers a range of issues that include but are not limited to addressing world poverty and hunger, ensuring clean energy supplies, and mitigating climate change. Sustainability is the future. It is the key to battling the struggle with significant challenges. Without it, ozone depletion, extinction, chemical pollution, modification to land systems, nitrate and phosphate flow to the oceans, and other similar factors will bring irreversible changes to the environment. Indonesia’s Plan for Sustainability Economy Indonesia will reportedly construct a green industrial area in North Kalimantan. The largest green industrial region in the world, it will use green energy in the power industry. The hydropower required to operate the green industrial park is generated by PT Kayan Hydro Energy using the flow of the Kayan River, which flows through the province. This initiative is to help Indonesia use more new renewable energy sources instead of fossil fuels. These are only a handful of the numerous initiatives made by the Indonesian government to create a green economy. The initiatives include a focus on green energy development and green investment. Read more: Indonesia’s Rapid Development for the Green Energy Transition A simple licensing process and financial incentives from the Indonesian government are just the beginning of the advantages that investors who are prepared to participate in this area will experience. Steps taken to create a more sustainable future are integral and must be completed without delay. InCorp Indonesia (an Ascentium Company) provides business licensing and company registration services that will ease your company’s processes and enable you to focus your resources on creating a more sustainable procurement. The Challenges of Economic Sustainability Economies primarily motivated by financial incentives are not ever viable, despite economists’ assertions to the contrary. Nothing that is done only for the good of society or, most definitely, for the good of future generations has any economic incentive to be done. Investments are required to safeguard, replenish, and regenerate the natural and human resources vital to economic sustainability. It will only accomplish if all investment decisions are made contingent on gaining something of value in return. Only by people expressing their social and ethical ideals through their individual and group decisions and behaviors will nature and society’s ecological health and productivity be maintained. Understanding Principles of The Sustainability for The Economy Scarcity is a fundamental concept in understanding the overall challenge of our economy. In essence, the underlying principle of scarcity allows us to realize that there is not enough for everyone to have it all. As human beings, Our needs are limitless and know no bounds. Our desires to have more, do more, and learn more cannot be met with the existing scarce resources. Nevertheless, there is a balancing act to ensure that scarce resources are best used. To further enhance this understanding, we dive into the various principles of economic sustainability. The core element of sustainable economic development is sovereignty, or “freedom to choose.” The Freedom To Choose Sustainable Economy Consumers must have precise information to determine the items’ true worth before purchasing them to prevent regretting their decisions. Individuals must be allowed to make their own economic decisions. The freedom to choose will lead to understanding the economy’s ideas of efficiency and scarcity. Without outside influence or compulsion, people must be free to choose or discover what they need and desire. Economic sustainability requires financial autonomy. Additionally, many people have given up their economic independence by borrowing excessively. The habit resulted in reducing their future economic chances. The efficiency principle is also crucial as the key to the sustainability of the economy. Efficiency in terms of economic value and cost is referred to as economic value and increases with increasing importance to costs. Alternative applications for the natural and human resources utilized to create goods with economic worth are frequent. Economic efficiency is using natural and human resources to their highest or best economic use, for example, their highest economic value compared to their highest economic costs. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions What requirements are needed if my Indonesian company registers the product? Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months. What are the shareholder rights in a PMA company? Shareholders of a PMA Company in Indonesia have various rights, including voting rights in general meetings, entitlement to dividends and liquidation proceeds, and access to information. They must approve significant matters through general meetings of shareholders with specified quorums, such as: Amending articles of association Changing share capital Appointing or dismissing directors and commissioners Approving major transactions, dividends, and financial statements Company reorganization Can you have a nominee arrangement when setting up PMA? A nominee arrangement is an arrangement that uses another person’s name as a subject. In Indonesia, it is prohibited. This restriction aims to prevent situations where a company is owned by one party but beneficially owned by another. According to the law, any nominee agreement between a local party and a foreign investor is deemed null and void. Can an individual or a business organization be a shareholder in a PMA company, and is there a minimum number required? A limited liability corporation is required by Indonesian company law to have two or more shareholders, who may be either a legal entity or an individual. The foreign investor must find a second shareholder to own shares in the PMA firm for investments that are 100% open, which could be an affiliated party. Get in touch with us. 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