Establishing sustainable business practices in alignment with Indonesia’s long-term national ambitions.

2045 is a significant year for Indonesia: the 100-year milestone of its national independence. As such, the Indonesian Government sees the year as an appropriate target for its long-term development program known as ‘Indonesia Emas 2045’, or Golden Indonesia 2045. Launched in 2019 by President Joko Widodo, the program is a roadmap to Indonesia becoming a “developed nation”, and one of the top five largest economies in the world.
However, this is not merely a target for the national economy, its mission is holistic, encompassing substantial improvements in human capacity, social equity and governance, essentially raising the overall standard of Indonesia as a nation. Of course, such an ambitious program requires cooperation the private sector. Carissa Finneren and Nurina Izazi from the Indonesia Business Council for Sustainable Development (IBCSD) outline how businesses in Indonesia can best align themselves to the national agenda, especially under President Prabowo Subianto’s new administration.
THE GOLDEN INDONESIA LENS
Responsible business plays a central role in navigating the pathways set for Golden Indonesia 2045. The program’s overall vision includes: fostering economic growth, diversifying the economy, improving social inclusion, accelerating a green transition, developing sustainable supply chains, and strengthening international partnerships.
Achieving 7-8% annual growth and high income status requires strategic investment, value-added production, growth in the digital and services sectors, and effective tax reform. This growth aims to ensure a more equitable and inclusive economy, with a well-trained workforce and increased formal employment, yielding multiple national dividends. A resilient and sustainable economy requires clean energy, healthy food, and fresh water, while nurturing natural surroundings and supportive communities.
NEW ADMINISTRATION PRIORITIES
Indonesia has high aspirations for its ability to overcome challenges associated with inequality, climate change, and an economy constrained by an informal workforce and commodity trading. The best plans and resources of the previous government have been tailored for new ministries, priorities and programs, set to provide a runway to overcome these incumbent constraints and elevate Indonesia’s position both domestically and internationally.
The new government platform of 17 priority programs aligned to achieve the Golden Indonesia vision has elevated and expanded the importance of several key components that provide significant opportunity for business community participation.
National self-sufficiency in energy and food positively disrupts fossil fuels with clean energy and increases the volume and value of edible food with less harm to natural surroundings and human health. Business entities, from large to small, will be primary movers in these two sectors to meet evolving consumer and investor expectations, and should not overlook the importance of efficiency and waste throughout the production lifecycles.
Environmental preservation is vital for long term prosperity as the country is dependent upon the availability of adequate natural resources, including clean air and fresh water. Increased awareness and strong commitment to the tenets of sustainable production and consumption is critical to achieve economic growth and self-sufficiency. The Sustainable Development Goals (SDGs) and Nationally Determined Contributions (NDCs) are valuable guideposts in this journey while access to green finance provides alternate sources of funding for businesses to link resource use with responsible operations.
To ensure success in sustainable agriculture production, improvements in infrastructure, resources, knowledge, skills, and funding are necessary. The National Meal and Food Estate programs are new initiatives to help demonstrate and improve outreach and integration with the inclusion of small scale farmers and MSMEs as target beneficiaries. Food and beverage industry opportunities are plentiful as is the scope to minimise food loss and waste throughout sustainable supply chains, which also serves to reduce deforestation for more crop area.
The main driver to long term high economic growth is adding value to basic commodities. The Prabowo administration has adopted 8 priority sectors and 28 key commodities for further research and development, processing and production to strengthen industrialisation while raising national revenue and community lifestyles in compliance with environmental standards. The broad range of sectors and commodities provides immense potential for all types of business to contribute and prosper.
THE ROLE OF SUSTAINABLE BUSINESS
Business plays a pivotal role in driving transformative change in a world increasingly shaped by sustainability. Its ability to innovate, influence markets, and mobilise resources makes it a powerful catalyst for a sustainable future.
Globally, as a key advocate for a sustainable future, the World Business Council for Sustainable Development (WBCSD) envisions a world where businesses help 9 billion people live within planetary boundaries. This requires businesses to prioritise net-zero transitions, circular economies, sustainable resource uses. Similarly, Golden Indonesia 2045 identifies sustainable business practices as a key milestone.
Organisations like IBCSD support Indonesian businesses in adopting sustainable practices by connecting them with resources, knowledge-sharing platforms, and international best practices. As WBCSD’s global network partner, IBCSD localises global strategies to address Indonesia’s unique needs and ensure practical implementation at the national level.
At the national level, IBCSD fosters collaboration through a pre-competitive business community, accelerating sustainability actions. By engaging in collective efforts, business leaders drive progress toward Indonesia’s sustainability goals while ensuring economic prosperity and social equity.
Indonesia’s NDs cover five key sectors in reducing GHG emissions: energy, waste, industrial processes (IPPU), agriculture, and FOLU (Forestry and Other Land Use), with plans to add a marine sector focused on coastal and marine ecosystems. By 2022, FOLU contributed 61.16% of the total 466.57 million tCO2e reduced. Achieving the FOLU Net Sink target requires private sector engagement in sustainable forestry and forest fire prevention, where IBCSD supports businesses through capacity-building and fostering partnerships with governments and NGOs.
In the energy sector, the transition to renewable energy is key to Indonesia’s carbon-neutral future, contributing to a 27.3% reduction in GHG emissions. The government encourages businesses to adopt renewable energy, build sustainable supply chains, and invest in green and Islamic projects to support economic resilience. IBCSD helps businesses navigate with practical tools and foster collaboration across supply chains to amplify the impact of these transitions.
Similarly, the food sector plays a critical role in advancing the green economy and food self-reliance. Through the GRASP 2030 (Collaboration in Tackling Food Loss and Waste by 2030) initiative, businesses are encouraged to reduce food loss and waste, lowering greenhouse gas emissions and contributing to national food security and nutrition. Additionally, IBCSD supports regenerative and sustainable agriculture through pilot projects that promote respect for natural and human capital, aligning with the government goals of an equitable and inclusive economy with sustainable supply chains.
There are countless examples of leadership in sustainability across many industry sectors, showcasing how businesses balance economic, environmental, and social goals to achieve the Golden Indonesia Vision 2045 as well as the pillars and priorities of the new government administration.

According to IBCSD Vice President (of IBCSD) and Vale Indonesia CEO (of Vale Indonesia), Febriany Eddy, “Businesses are prominently positioned to drive transformative change by aligning their strategies with national priorities. Whether through enhancing food security, transitioning to renewable energy, or protecting our environment, sustainable business practices are essential to Indonesia’s economic and social resilience,” echoing the sentiment shared by many leaders in the Indonesia business community. “No one can address these challenges alone. It is through partnerships among businesses, governments, NGOs, and communities that we can ensure sustainability is woven into the fabric of Indonesia’s development trajectory.”
This message also resonates with the IBCSD Chairman and President Director of PT Riau Andalan Pulp and Paper, Sihol Aritonang. He believes that conducive and favourable regulations to drive innovation and investment towards a greener economy and a clean energy transition are enabling factors for the business community in aligning business decisions with national goals.
Article by Carissa Finneren and Nurina Izazi