Inclusive Business Roundtable Discussion for Indonesia

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 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 – base of the pyramid 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 was 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. As proposed by the consultants, the 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 -- were also included in the agenda.

Target participants

Around 70 participants joined the forum. Private sector chief executive officers presented inclusive business models; fund managers and possible investors discussed their interest in investing in such ventures; and government representatives and development partners shared how they can support inclusive business in Indonesia.

The forum was 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 World Business Council on Sustainable Development, and other development agencies such as 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