Home Blog Stakeholder Collaboration: Driving SDG Goals in Indonesia Business Licenses | Indonesia | Other Stakeholder Collaboration: Driving SDG Goals in Indonesia InCorp Editorial Team 19 June 2024 5 minutes reading time Table of Contents Indonesia's commitment to SDGs The importance of stakeholder collaboration in SDG implementation SDGs implementation across the country The challenges and solutions Conclusion As the world navigates complex challenges, achieving sustainable development has become an imperative shared by nations across the globe. Indonesia is a dynamic and diverse nation striving to make significant strides toward the United Nations’ SDG Goals. In this article, we will explore the potential of collaborative partnerships to reshape the fabric of sustainable development, which warrants exploration and holds the promise of transformative impact. Indonesia’s commitment to SDGs Indonesia is committed to localizing the Sustainable Development Goals (SDGs) from the national to the village levels. To ensure SDGs implementation to the smallest community unity, the government aims to mainstream Village SDGs as the policy direction for rural development until 2030. The government has provided a tremendous amount of village funds to all villages in Indonesia, with IDR 70 trillion (USD 4.68 billion) only for 2023’s fiscal year. The government also promotes Village SDGs through publications and capacity-building for village administrators. Other activities to promote village SDGs include the Village Fund Transfer Program (BLT Dana Desa), which supports the SDG goals of poverty-free, hunger-free, and healthy and prosperous villages. Moreover, other supporting activities include: Empowering Village-Owned Enterprises. Infrastructure development. Cash-for-work programs in villages. Smart villages. Strengthening appropriate technology in villages. Development of village tourism. The extent to which SDGs are applied in villages can be seen in how Indonesia’s sustainable development indicators are improving. For instance, across the whole country, almost all households (99.45%) have electricity. While in the SDG-focused village of Sumur Agung, East Java, every single home has electricity (100%). Read more: Indonesia’s Path Towards Sustainable Development Goals The importance of stakeholder collaboration in SDG implementation Since the surge of COVID-19 cases in Indonesia, the country has witnessed better collaborative efforts from stakeholders, including government officials, private sectors, and NGOs, to promote economic and public health recovery. For example, the Jakarta government established collaborations spanning various sectors by partnering with hospitals and laboratories for polymerase chain reaction (PCR) tests. Simultaneously, the city administration introduced a digital platform to streamline food donations within local neighborhoods. Moreover, donors and digital finance firms supported small and medium-sized businesses (SMEs). This successful approach was adopted across most provinces and cities throughout Indonesia. Similarly, the local government employed a cultural strategy in Bali, engaging influential individuals and community leaders to promote public adherence to COVID-19 health guidelines and significant social restrictions. This method effectively reduced the count of daily infections within the local area. [elementor-template id=”229205″] SDGs implementation across the country The Supreme Audit Agency (BPK) appreciated the Indonesian government’s collaborative effort in the transition and implementation of SDGs across the country. The result of BPK’s audit showed that the government had enhanced the design of SDG policies and the structure of institutions to harmonize with the national development blueprint. This accomplishment has been achieved through the issuance of regulations governing the execution of SDGs at both the national and regional levels. These measures ensure consistent and synchronized development throughout the entire country. The challenges and solutions The Indonesian government needs some help related to stakeholder collaboration for SDGs, these include: 1. Lack of data The need for more essential data for the decision-making process has become one of the challenges for SDG implementation in Indonesia. Hence, the government believes strategic, global, and multi-stakeholder collaboration is necessary to ensure data availability. 2. Vast land area With its extensive land area and population spread across the archipelago, Indonesia faces the challenge of ensuring comprehensive coverage. Adequate financial backing is a crucial component of this effort, whether sourced from local government channels or external means. Creative funding mechanisms like green and SDG bonds can serve a key role in bridging the financial gap. Indonesia is actively exploring innovative avenues, such as sukuk, as a form of Sharia-compliant financing, which has the potential for global utilization. 3. Food security A significant issue gaining prominence in Indonesia is the challenge of insufficient food security, a global concern. To address the situation, the government has implemented essential measures to alleviate this barrier. These steps encompass enhancing food availability by establishing centers for food production, refining the national logistics system to narrow price disparities, and fortifying collaborations between farmers, fishermen, and contemporary retail enterprises to streamline supply chains. Furthermore, the nation is augmenting its output of key domestic crops through a multifaceted approach. It includes expanding cultivated land, intensifying the utilization of existing land, and establishing ecosystems that can replace traditional staple foods. These solutions are poised to ensure that nutritious food is accessible across various population segments. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Notify Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Conclusion The Indonesian government is committed to achieving SDGs throughout the country, emphasizing collaboration. Amid the COVID-19 pandemic, improved stakeholder cooperation has emerged, potentially setting a precedent for SDG attainment across all levels. Businesses can contribute by adopting ESG practices aligning with SDGs through sustainable operations and offerings. For those who embrace ESG practices, InCorp Indonesia provides ESG advisory and business license services, ensuring harmony between your products and services and the ESG approach. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions What kind of license does a PMA company need to get? In Indonesia, the licensing system has been updated with the implementation of the Omnibus Law. Businesses are categorized into four risk levels based on the PMA company classification. Licensing requirements vary accordingly, with three main types: Business Identification Number (NIB) Low-risk businesses needing only an NIB Standard Certification Standard Certification is necessary for medium-low and medium-high-risk businesses Licenses/Permits High-risk businesses require licenses/permits Additionally, basic requirements, including business location, must be met. Many licensing processes are facilitated through the Online Single Submission (OSS) platform managed by the Investment Coordinating Board (BKPM). What if my product has been registered under a local distributor, and I decide to transfer the license to my company or another distributor? You can transfer the license if your local distributor agrees to change the product license holder. How A PMA company can be eligible to conduct import activities? What licenses and procedures are necessary while engaging in import-related activities? A PMA company in Indonesia must obtain an NIB, which also functions as: Importer Identification Number (Angka Pengenal Impor or API) Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production. General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System. Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process. Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals. Get in touch with us. 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