Jakarta, The PRAKARSA – In 2023, Indonesia is currently Chair of the Association of Southeast Asian Nations (ASEAN). Based on ASEAN Economic Integration Brief December 2022 edition, the Southeast Asian region itself has experienced extraordinary economic growth over the past few decades, but has also faced serious challenges, especially rising inequality. Solutions are emerging, and regional leaders have agreed that inclusive economic growth is the way forward. An inclusive economy requires inclusive business. Efforts to encourage and realize an inclusive and sustainable business are also expected to contribute to accelerating the achievement of the Sustainable Development Goals (SDGs), which all ASEAN countries have adopted.
For this reason, Civil Society Organizations (CSOs) from various parts of the Southeast Asian Region, together with other stakeholders, namely the Government and the Business Sector, will gather and have joint dialogue in ASEAN Inclusive Business Summit Side Event 2023 which will be held in Nusa Dua, Bali, Indonesia, from 21-22 August 2023. The event which is planned to be attended by the Ministry of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia as the host of 6th ASEAN Inclusive Business Summit 2023 will raise issues related to the vital role played by CSOs in supporting inclusive business development and sustainable development.
Starting the series of events, today Tuesday (15/8), The PRAKARSA together with the International NGO Forum on Indonesian Development (INFID), Oxfam in Indonesia, the People's Coalition for Food Sovereignty (KRKP), and the Association for Women's Small Business Assistance (ASPPUK) held discussions with media crews or media briefings entitled “The Role of CSOs in Enhancing ASEAN Economic Growth Through Inclusive and Responsible Business”, which took place at Madame Delima, Menteng, Central Jakarta.
On the occasion of this discussion, Ah Maftuchan, Executive Director of The PRAKARSA stated "the holding of the side event shows the support and active participation of civil society for ASEAN so that the 2023 Inclusive Business Summit has a real impact on all business actors in Indonesia and in the ASEAN region including small and medium business actors. Why do we have that commitment, because we have the belief that inclusive business as a business approach that is commercially and non-commercially healthy will determine economic growth and will determine the welfare of business people at the grassroots level.”
Furthermore, Maftuchan emphasized the importance of implementing inclusive business, especially in the agricultural sector. "As research PRAKARSA found that there is still an imbalance in the relationship between smallholders and oil palm companies. In addition, violations of workers' rights and violence against women still occur in the field. However, good practices already exist, for example, some oil palm farmers in Riau have a fairly prosperous life because of fair cooperation between farmers and companies. What is still a problem and good practice must be reconciled so that broad good practice replication occurs.
Inclusive business refers to an approach in which business people work together with local communities, governments and other sectors to ensure that economic growth benefits all levels of society, including marginalized groups. Civil Society Organizations (CSOs) have an important role in facilitating dialogue between stakeholders, supporting the formation of strategic partnerships, and overseeing the implementation of inclusive business programs in various sectors. Eko Suhartanto, Entrepreneurship Educator from Prasetya Mulya University said that "Each stakeholder has an important role in achieving the same goals in realizing this inclusive business. Ultimate goal or the main achievement in inclusive business is welfare or social welfare, not profit or other economic parameters.”
Based on a report by the International Finance Corporation (IFC), the largest Base of The Pyramid (BoP) market is in Asia, with a total of 2,86 billion people. This BoP market represents more than 80% of Asia's population and nearly half of its purchasing power. Inclusive business is a transformative business model that connects companies and BoP populations in a unique way. This model integrates the poor in the company's supply chain activities as customers, suppliers, distributors and/or business partners. When referring to SDGs 17 "Partnership to Achieve Goals" and the principles of SDGs, no one left behind, partnerships between parties are absolutely necessary to achieve inclusive business implementation. This inclusive business approach provides benefits not only for countries that get boosted by economic growth, but also for the poor and marginalized groups in the Base of their Pyramid (BoP) whose standard of living can improve and eventually get out of poverty.
“Reflecting on a real example in one of the stories of female farmers in Pinrang, South Sulawesi, namely Mrs. Rusda, who was originally a housewife, but then received some business training from Civil Society Organizations and a seafood company where she lives. Finally, now he has a marlin shredded fish business that can produce independently. The Dapur Rusda business that he owns is now capable of producing 100-200 kilograms of floss/month with a profit of up to 10 million rupiahs every month. This clearly illustrates how important implementing inclusive business is in Indonesia, and in ASEAN countries.” Said Tatat, Program Manager for Oxfam in Indonesia.
The 2023 Inclusive Business Summit Side Event, initiated by the International NGO Forum on Indonesian Development (INFID), The PRAKARSA, the People's Coalition for Food Sovereignty (KRKP), the Association for Small Business Support for Women (ASPPUK), and Oxfam in Indonesia aim to share knowledge, experience, and best practices as well as multi-stakeholder collaboration in encouraging inclusive business implementation. "We fully support the activities to be carried out on 21-22 August 2023, because the role of Civil Society Organizations is very important in driving an inclusive business agenda in ASEAN and Indonesia. Collaboration between the private sector, government and civil society is the key to creating a bigger and more sustainable positive impact,” concluded Destry Anna Sari, Assistant Deputy for Business Consultation and Assistance at the Ministry of Cooperatives and SMEs.
