A couple of weeks ago, I had the opportunity to attend a private meeting with Pak Tom Lembong to discuss matters pertaining to human capital, health care, recent uprising pollution in Jakarta and climate crisis.?
Indeed it is a great news to hear on some optimistic tone of the potential of Indonesia projection to become the fourth-largest economy by 2045. Will we be actually happier by then? The next question is how can we strike a balance between high economic growth, a healthy labor force, and elevated education standards??
In this aspect we have to learn from past mistakes that has been implicit in many past strategy of unbridled industrialization. It’s a notion of the country gets rich first before people get educated and healthy. In reality, what we want is to make people healthy and educated first, and economic growth will take care of itself. It’s not just about make money and build. To make this happen, we need to flip the paradigm upside down and a stronger commitment through medium and long term plan on the shared interest of people well being.?
Since then, I have been examining the nexus among economic growth, education, and health issues, all for the sake of the next generation. Then this week, I have also attended the Indonesia Sustainability Forum 2023.? Attended by world leaders, industrial leaders, and policymakers, I am pleased to note that Indonesia has announced a serious commitment on Sustainable development Goals. Through this forum, it provided solutions that we are all looking for.
It's crucial to step back and realize that going into green economy is the most significant transition humanity will ever undertake. It will be challenging, but we must work hand in hand, as sustainability is now essential for achieving high economic growth with a balance of quality education and health.
Key takeaways on ESG Implementation:?
- Industrial players and policymakers need to incorporate ESG (Environmental, Social, and Governance) principles in their efforts for a green transition. Simply put, every industrial player must consider how to sustainably use resources for today and protect them for tomorrow.
- While adopting a triple-bottom-line approach may seem idealistic in a world emphasizing profit over purpose, innovative companies like Vale, ExxonMobil, Airbus, Nestle, and Siemens have demonstrated that it's possible to thrive by doing good for the environment in addition to financial profit.
- The forum suggests the commitments of green financing up to USD 300 bio until 2030. This allow both the government and industries to increase investment in modern, energy-efficient, and green technologies, which are beneficial for economic development and environmental conservation.
- We can foresee new business opportunities emerging from these initiatives, including the development of electric vehicles and their OEMs, waste management systems, renewable energy projects, and more.
Key takeaways on Education:
- Sustainable Development is not just about decarbonizing; it's also about optimizing our workforce through education, which may require long-term investment. I'm pleased to see more efforts aimed at improving our higher education quality. Higher education produces skilled laborers who work efficiently and effectively, stimulating economic growth, both directly and indirectly. There will be various benefits, including attracting more local and foreign investors and developing entrepreneurial skills and innovation, contributing to economic development and the exploration of opportunities in sustainable investments. Indonesia itself potentially holds $200-250 billion USD in value creation from sustainability.
- Apart from improving higher education, it's essential to also address the fact that, according to the OECD, the majority of the Indonesian workforce is unskilled with low-level education, and ADB estimates that over half of workers are under qualified for their occupations. To achieve sustainable economic goals, the public needs education to secure employment. Collaboration between the government, state-owned enterprises, and the private sector in up-skilling and re-skilling human capital in rural areas through increased investment in technical and vocational education is crucial.
- Additionally, advancements in AI and the pioneering efforts of Edutech companies, despite tech winter challenges, help democratize education access to everybody. I certainly hope there can be more private equity firms (PEs) and venture capitalists (VCs) to allocate more investment to the education sector.?
- Our health depends heavily on the food we eat, the water we drink, and the air we breathe. The recent air pollution in Jakarta serves as a wake-up call, not only for me but also for the vast majority of Indonesians. Public education about human and environmental health issues is essential, enabling individuals to care for themselves and the environment. It should be considered basic knowledge in the new economy.
- We now recognize that overexploitation, climate change, pollution, and toxic waste stem from our past and current production and consumption systems. Implementing a circular economy has the potential to reduce biodiversity loss attributed to these systems. Often, we position economic growth and the circular economy as a trade-off. However, it can actually work hand in hand, bringing positive impacts to the environment, job creation, and business innovation.
Implementing the new economy to achieve net-zero emissions and sustainable future will require commitment from various sectors and actors, including governments, policymakers, existing industrial leaders, new venture builders, and non-governmental organizations.? I am hopeful to witnessing further advancements resulting from the successful collaboration of all these stakeholders.?
