I

ndonesia'€™s development challenges are not unusual for a diverse nation with respectable economic growth, an expanding middle class and overloaded public infrastructure.

Recent events such as major floods and electricity outages, the results of unsustainable practices and policies, illustrate that private companies and public institutions must work together to develop solutions that facilitate growth, minimize environmental impacts and maximize the positive individual and social impacts of our products and services.

Indonesia is a ripe for innovation that brings new solutions to people and new partnerships to society.

Addressing problems like electricity shortages in Jakarta, a microcosm of the country'€™s vast area and large population, requires the combined efforts of the public and private sector. The government should welcome opportunities for the private sector to invest in solutions, while businesses must recognize the benefit of supporting the wellbeing of consumers within their market. Such partnerships lead to solutions that target growth, inclusiveness and sustainability.

Indonesia'€™s maternal mortality rate (MMR) is another case in point. According to data collected by the Indonesian Demographic and Health Survey (SDKI, 2012), there has been a 57 percent increase in pregnancy-related deaths since 2007.

One solution is for private companies to provide hospitals with the technological capacity for remote screening and observation so that expectant mothers throughout Indonesia can access maternal healthcare. Mobile monitoring is technological advancement that, if implemented, can save women'€™s lives.

While the goal of public-private partnerships may be an ideal for some, it is foremost for a company dedicated to improving people'€™s lives. Further, as more companies embrace the recycle and reuse precepts of the circular economy, they must find ways to deliver economic and social benefits while also reducing the use of limited resources.

Innovation, the continual renewal of methods, ideas, products and technologies, is essential to the short-term success and long-term survival of a company. It is more than the time and money invested in researching technologies and developing better products.

Energy innovations, for example, like energy-efficient and long-lasting LED lights, can provide a solution to Indonesia'€™s electricity crisis. LED lights significantly reduce electricity demand at the grid level and electricity costs at the household level. When private companies work with city governments, they demonstrate how managed LED lighting services can result in cost savings, reduced electricity consumption, higher perceptions of livability and greater civic pride.

Bringing this innovation in technology to bear also requires innovation in a company'€™s business model: Lighting is no longer a product to be sold but is a service to be managed. That shift will transform the way a company does business.

Within the healthcare sector, companies can embrace the principles of a circular economy by transitioning from the traditional vendor relationship into technological partnerships with healthcare providers. For example, hospitals can lease equipment so that they are not financially overburdened or technologically pigeonholed by fixed acquisition decisions.

When the time is right, equipment is upgraded, refurbished or recycled with a guarantee on the efficiency and effectiveness of the best healthcare technologies. In line with a circular economy, these devices continue to circulate among hospitals. This flexibility allows hospitals to use the most suitable devices most efficiently, which in turn means treating a greater number of patients in the most cost-effective way.

Despite the large number of qualified scientists and engineers and dedicated entrepreneurs and government officials in Indonesia, there is still a gap between the development of innovative solutions and the acceptance of those solutions by the people who can benefit most.

Indonesia'€™s non-communicable disease (NCD) crisis provides another important example. While the Health Ministry expends approximately 80 percent of its entire insurance budget to cover the treatment of NCDs like diabetes, hypertension, heart disease and many cancers, the use of early detection technology remains low.

Innovation thrives in an environment where individuals and organizations take a long view of solutions. But a quick fix, throwaway society will take some convincing to wait for the benefits of the circular economy to become evident. The benefits will be there. The challenge is to strike a balance between the acceleration of and accessibility to innovations with the socialization of their value and long-term benefit.

This is a challenge for any company driven by sales targets. While of course we must continue to sell products, we must also move away from transactional relationships with consumers toward partnerships built around shared, long-term goals that include increased sustainability and quality of life.

Blackouts, floods and diseases among an aging population are familiar challenges in this country and important reminders that our existence is precarious. They are also challenges that can be overcome. But this will require a crucial transformation: in the products we develop, the services we provide and the relationships we foster.

Technologies only matter if they benefit the people who use them in a meaningful way and it takes partnership to innovate for the benefit of all.

The writer is president director of PT Philips Indonesia. The opinions expressed are personal.