Background

Indonesia has achieved high and sustainable economic growth rates in recent years. It has a vibrant private sector that produces a variety of goods and services with the involvement of poor people. Although the number of people living in extreme poverty is low, an estimated 7% of the population (based on national statistics), the percentage of people with low income below $3 a day per person and hence vulnerable to poverty and external shocks remains high at 78 percent. However, these people at the base of the (income) pyramid (BoP) have a huge purchasing power which has not been explored by the private sector.

Inclusive businesses are for-profit enterprises that directly engage – in innovative ways – BoP populations in their value chain as consumers, suppliers, distributors or employees. The ADB and SNV market scoping study for Indonesia, supported by the Ford Foundation, assessed about 80 companies and 50 financing institutions in Indonesia that are interested in inclusive production and supply. The Inclusive Business Forum will discuss the results of that study, and the recommendations for ADB – and other development partners – to support Inclusive Business investments in Indonesia. One suggestion was to include Indonesia in a proposed inclusive business fund for the Mekong region.

The Indonesia study is part of ADB’s wider inclusive business initiative.

Objectives

The objective of the Indonesia Inclusive Business Roundtable is to discuss the initial findings of the inclusive business country assessment, and the recommendations in that study for ADB and other development partners to support inclusive business scale-up in Indonesia. The roundtable will also discuss, as proposed by the consultants, possibilities for supporting inclusive business in Indonesia through a distinguished inclusive business fund, the first ever for the country, or through financing facilities – maybe as part of a broader Mekong and Southeast Asian fund.

Target participants

The forum will include around 70 participants. Private sector chief executive officers will present inclusive business models; fund managers and possible investors will discuss their interest in investing in such ventures; and government representatives and development partners will see how they can support inclusive business in Indonesia.

The forum is organized by ADB in cooperation with SNV, the Netherlands’ Development Organization, the , Indonesia Business Council for Sustainable Development (IBCSD), and the Ford Foundation.

ADB’s regional inclusive business initiative is in partnership with the inclusive business work done by, the World Business Council on Sustainable Development, and other development partners including DFID, the Ford Foundation, KfW, SIDA, SNV, and the Inter-American Development Bank (IADB).

Contacts

Armin Bauer
Principal Economist, ADB (Manila),
Tel: 0063-2-6325550
Email contact form
 
Pamela Bracey
Principal Investment Specialist of ADB’s Private Sector Department (coordinator in ADB’s Indonesia Resident Mission)
Tel:  0062-21-2512721 loc. 5511
Email contact form
 
SNV Inclusive Business Approach:
Phil Harman, Programme Manager, SNV
Tel: +62-21 7892489  ext 128
Email: pharman@snvworld.org
 
Indonesian Consultant Team:
Bernardino Vega
Email: dinovega158@gmail.com
 
Tiur Rumondang
Tel: 0063-21-52901941
Email: tiur24@cbn.net.id
 
For participating in the event, please send your reply form to Ms. Lusye Marthalia (event coordinator),
Tel:  021 - 52901941 ext. 18
Fax : 021 - 52901949
Email: lusye@cbn.net.id