Kadin Confident Indonesian Companies Becoming More Globally Competitive Through ESG

The Indonesian Chamber of Commerce and Industry (Kadin) believes Indonesian companies are becoming increasingly competitive on a global level, in line with the strengthening implementation of Environmental, Social, and Governance (ESG) principles in business management. This conviction emerged at the ESG Governance Kadin-GAPPS International Awards held at the Kadin Indonesia Tower in Jakarta on Thursday. Shinta Kamdani, Coordinating Vice Chairwoman for Human Development, Culture and Sustainable Development at Kadin Indonesia, said in a confirmed statement that the award, organised jointly with the Global Alliance for Project Performance Standards (GAPPS) and the Institute for Sustainability and Agility, serves as a form of appreciation for companies demonstrating commitment and best practices in ESG implementation. Beyond being an awards event, the activity also serves as a platform for learning, benchmarking, and strengthening ESG governance in Indonesia. “ESG is about how companies make decisions, manage risks and opportunities, create an impact on society, and build sustainable shared value for the business,” Shinta said. She explained that this year’s awards featured two main categories: Governance of ESG and Project Management of ESG Initiatives. Strong ESG governance is considered essential to ensure that sustainability aspects are integrated into corporate strategy, leadership, risk management, and accountability. Meanwhile, good project management is necessary for various ESG initiatives to be implemented effectively and produce measurable impacts. Shinta explained that awards were given at three levels of achievement: Best ESG Governance Excellence, Achievement, and Commitment. This structure reflects that sustainability is a continuous process requiring a commitment to keep learning and growing. “We hope more companies will participate in the coming years. The more companies involved, the stronger Indonesia’s ESG ecosystem will be. We want more Indonesian companies to be able to compete not only nationally but also on the global stage,” she added. Echoing this sentiment, Elim Sritaba, Kadin Indonesia’s Vice Chairwoman for Business and Sustainable Governance, stressed that ESG implementation must become a key foundation for the business world, especially for Kadin members. This step is aligned with efforts to support the national economic growth targets set by the government. Maria R.Nindita, Chair of Kadin Indonesia’s ESG Governance Standing Committee and Chair of the ESG Governance Kadin–GAPPS International Awards, revealed that technological innovation was an interesting finding in the ESG Governance category. According to Maria, several companies have utilised information technology to build ESG dashboards that enable real-time monitoring of sustainability performance. Meanwhile, GAPPS Finance Director Tony M Simmonds assessed that the development of ESG practices in Indonesia shows significant progress. Based on the judging process, Indonesian companies were found to have a strong commitment to sustainability. “What we found during the judging process is that Indonesian companies are very focused on ESG and sustainability. I even think Australia can learn a lot from Indonesian companies and how they run these initiatives,” he said.