Project purpose
In collaboration with the Dutch embassy in Indonesia and the Netherlands Enterprise Agency (RVO), CSR Netherlands (www.mvonederland.nl), Victor de Lange (director at CREM BV (see www.crem.nl) and Sustainable Business Development BV), FENEDEX (Federatie Nederlandse Exporteurs) and FNLI (Federatie Nederlandse Levensmiddelen Industrie) have developed this proposal for the execution of two parallel projects:
- Identification of possibilities to institutionalize CSR in Indonesia in a way that the shift from charity to CSR as a business case will be made and that both Dutch and Indonesian stakeholders are involved.
- Identification of strategies to stimulate sustainable food consumption in Indonesia, including related opportunities for the Dutch sustainable agri-food sector (exporters and investors). More critical consumers have the potential to improve the general business climate in Indonesia. This specific project aims to be a first pilot within the larger objective of project 1 ( ): in case Indonesian consumers start demanding more sustainable products, an important stimulus to consider CSR as a business case will be generated.
FENEDEX and FNLI want to know to what extent CSR is also a business case in emerging economies like Indonesia and, if so, what needs to be done that Dutch exporters and investors can take maximum advantage. Initially, they want to focus on the agri-food sector (see project 2). Through market research and brainstorm sessions strategies will be developed to take advantage of a (possible) demand for sustainable food products on the Indonesian market. These organizations consider Indonesia as a pilot country: lessons learned can be translated to other emerging economies.
Project results
Project 1 aims to create a foundation for the institutionalization of CSR in Indonesia in a way that the shift from charity to CSR as a business case will be made and both Dutch and Indonesian stakeholders will benefit. In collaboration with Dutch and Indonesian stakeholders a strategy for such objective will be developed. Among other issues this will address the question to what extent it is desirable and feasible to embed CSR within an existing or new body in Indonesia (e.g. is it desirable to set up ‘CSR Indonesia’, something similar as ‘CSR Netherlands’). Also a possible future role for Dutch stakeholders, such as CSR Netherlands, to further assist Indonesia in this area will be determined.
For the development of this strategy (including required budget) in the first place stakeholders in the Netherlands will be involved. Together they will assess (potential) opportunities and threats for Dutch importers, exporters and/or investors in relation to strengthening of CSR in Indonesia and what strategies should be built upon that. This also includes the question how a ‘Dutch’ pro-active approach in the area of CSR in Indonesia can contribute to the Netherlands’ desired international image of being a country strongly advocating CSR and sustainable development in general.
In the second place Indonesian stakeholders will be involved (government, business associations, individual companies, NGOs and universities). Together they will determine the desirability and feasibility to institutionalize CSR in Indonesia in a way it will enable a shift from charity to CSR as a business cases. This includes possibilities to apply a favourable CSR performance to strengthen Indonesia’s international image and possible future cooperation with Dutch stakeholders (e.g. CSR Netherlands).
Output of project 1 is a strategy and action plan (including financial arrangements) to institutionalize CSR in Indonesia in a way that a shift from charity to CSR as a business case can be made and that Dutch and Indonesian stakeholders are involved. The report (in English) will address all questions mentioned in paragraph 2.1.
Project 2 elaborates on the objectives of project 1. The objective is to identify opportunities for sustainable food consumption in Indonesia that will both benefit Dutch companies in the agri-food sector and enhance a CSR-related business climate in Indonesia. Attention to sustainable food consumption in Indonesia can contribute to a breakthrough in the area of CSR. It would generate new business cases for the private sector to work on CSR. Based on the assessed opportunities strategies for follow-up will be developed (including required budgets). These will be incorporated in strategies related to CSR promotion in Indonesia in general (see project 1).
FENEDEX and FNLI and a selection of their member companies will be involved in this project and contribute financially. In Indonesia the private sector (food industries, retailers and/or the hospitality sector), government bodies and civil society will be involved.
Output of project 2 is a strategy and action plan (including financial arrangements) to stimulate sustainable food consumption in Indonesia. This strategy will fit in the overall strategy resulting from project 1. The report (in English) will address all questions mentioned in paragraph 3.1. Based on the output of the workshop, at least one activity will be assessed to give follow-up on this initiative. For example, this may concern:
- Strategic partnerships on specific topics between Indonesian and Dutch parties from the private sector, public sector and/or civil society
- Consumer awareness campaign
- Matchmaking
- Institutional development
- Execution of specific projects (e.g. under the umbrella of PPP-programs (especially FDOV), DGGF, CSR covenants with the Dutch agri-food sector and/or innovation policies).
The results of both projects will be disseminated through the communication channels of CSR Netherlands (social media, blogs, website, newsletter) and shared with members of FENEDEX and FNLI (through articles and presentations / discussions during brainstorm sessions / conferences).
Location
Jakarta, Indonesia
Executor
Crem B.V.
Budget
€ 44.920
Project status
Implementation phase
Project activities
Project 1:
To carry out a CSR country scan in order to identify possibilities to institutionalize CSR in Indonesia in a way that the shift from charity to CSR as a business case will be made and to identify sectors with promising business opportunities for CSR. Both Dutch and Indonesian stakeholders will be taken into account, with a strong emphasis on SME involvement. The focus will be on the agri-food sector (in view of project 2) and various other business sectors to be identified (textile and concrete show great potential). This integrated project focuses on identifying opportunities in the field van CSR for (Dutch) companies doing business in Indonesia and for Indonesian companies. The outcome of this project could be used as input for a possible sustainable trade mission to Indonesia.
Project 2:
To identify opportunities for the sustainable consumption of food products ( ) in Indonesia that will both benefit Dutch companies in the agri-food sector (exporters and/or investors, representing all kinds of sub-sectors and including manufacturers of food processing machinery and service providers) and enhance a CSR-related business climate in Indonesia. Based on the opportunities identified, follow-up strategies will be assessed. This specific project elaborates on the objectives of project 1, because a breakthrough in the area of CSR is likely to happen if Indonesian consumers become more aware about sustainability issues. That would generate new business cases for the private sector to work on CSR.
In general, it is crucial that especially consumers in emerging economies such as Indonesia become more aware and adjust their consumption patterns. They are a fast growing economic force and without their involvement, it will be very difficult to make global supply chains more sustainable. The following figure illustrates shares of global middle class consumption from 2000-2050 (the emerging middle class in developing countries, Homi Kharas, OECD Development Centre, Working Paper No. 285, January 2010).
Both project will consist of three similar phases and activities:
1. Preparatory work in the Netherlands
2. Interviews in Indonesia
3. Strategy development and reporting
In order to minimize costs and to realize maximum impact these two projects will therefore be carried out simultaneously.