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69% of Indonesian MSMEs don't understand SDGs
Ronald Walla from Apindo called on the government to create a supportive environment for MSMEs, including financial incentives, access to information and regulatory simplification.
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Addressing sustainability: United Nations Secretary-General Antonio Guterres delivers a statement during the opening of the Sustainable Development Goals (SDGs) Summit 2023, at UN headquarters in New York City, New York, the United States on Sept. 18, 2023. (Reuters/Mike Segar)
T
he Indonesian Employers Association (Apindo) revealed that 69 percent of micro, small, and medium enterprise (MSME) businesses in Indonesia do not understand the Sustainable Development Goals (SDGs), which are the foundation for sustainable economic practices.
"69 percent of MSME actors in Indonesia are either unaware of or do not understand the SDGs," Apindo head of MSME Division Ronald Walla said during the 9th Sustainability Practitioner Conference on Thursday, as quoted by Antara news agency.
SDGs are indicators established by the United Nations, consisting of 17 global goals with 169 measurable targets. These targets have deadlines set by the UN as part of a global agenda for development aimed at promoting peace, human prosperity and the health of the planet, both now and in the future.
Ronald said that one challenge in implementing sustainable economic practices in Indonesia was the difficulty in meeting environmental compliance requirements and greenhouse gas emission targets.
According to his research, 78 percent of small businesses suffer losses due to complicated requirements.
Ronald emphasized the importance of the government's role in creating a supportive environment for MSMEs, including financial incentives, access to information and regulatory simplification.
Additionally, sustainability training and grants for green technology were crucial for empowering MSMEs, he added.
Meanwhile, the National Center for Corporate Reporting (NCCR) executive director Ali Darwin said that limited access to finance and regulatory complexity hinders MSMEs, even though more were adopting sustainability principles.
Ali further said that MSMEs have significant potential to contribute to poverty reduction, improved welfare and sustainable economic growth.
“By adopting sustainable practices, MSMEs could not only increase their environmental and social impacts, but also their competitiveness and long-term sustainability,” he said.
Earlier on Oct. 7, then Vice President Ma’ruf Amin discussed Indonesia’s SDG achievements during the SDGs Annual Conference.
Ma’ruf claimed that Indonesia was one of the fastest countries in the world to achieve the SDGs, with 62.5 percent of the targets met, significantly higher than the global average of just 17 percent.
However, then National Development Planning Minister Suharso Monoarfa revealed that 29.5 percent of Indonesia's SDG achievements were still off track and required special attention as certain indicators remained stagnant or were even worsening.
