PALMOILMAGAZINE, JAKARTA – The Green Investment Instrument for sustainable Micro, Small, and Medium Businesses (MSMB) slated for development by Supernova Ecosystem in 2030 aims to support 120 sustainable enterprises, fostering economic growth while preserving forests.
This investment initiative, focused on restoration and environmental conservation, is projected to sequester 7 million tons of CO2, safeguard 700 thousand hectares of forests, and generate 13,000 jobs for indigenous communities. These details were shared during a recent media discussion titled “Innovative Green Funding Instruments for Sustainable MSMBs” held in Jakarta.
“As a catalyst for sustainable business funding, Supernova Ecosystem facilitates matchmaking between stakeholders, capital providers, and governments. Two key programs, the Constellation Accelerator and Equatora Capital, are poised to address environmental and social risks in the supply chain,” explained Inez Stefanie, Partner at Equator Capital within Supernova Ecosystem, in an official statement to Palmoilmagazine.com on Monday (8/4/2024).
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Inez continued the 2024 short term – target is that about to conserve a 35.000 hectare – area that would deliver impacts for 3.500 forest farmers, fishermen, and plantation farmers in three commodities, such as, tengkawang, patchouli, and fish cork. The main seven commodities would be developed with their pipeline, such as, chocolate, coconut, cashew where they are mostly in eastern Indonesia.
To realize the target, Inez emphasized that it needs multi-party collaboration in a work ecosystem and get sustainable businesses. Supernova Ecosystem would keep doing it together with its partners, such as, Lingkar Temu Kabupaten Lestari (LTKL), Koalisi Ekonomi Membumi (KEM), and others.
“We initiated the concept and work fram, which is, Value Chain Collaboration Canvas (VC3) to encourage and facilitate the sustainable collaboration among the ecosystem actors by focusing in agro-forestry sectors and commodities. As part of KEM, the team work of Constellation Accelerator of Supernova Ecosystem would lead and help to develop green MSMB. While Equatora Capital would lead the team work to raise fund,” she said.
Inez also explained that the work target that Supernova Ecosystem would like to achieve is that to encourage green MSMB development to get fair and equal economic development and answer every environmental issue.
In the discussion, DR. Mubariq Ahmad, Environment and Economy Exper told the challenges to develop green MSMB or sustainable businesses both business owners and capital owners would face.
“The first challenge is that to develop green MSMB from fund is that there are not many sources of fund from the government(s) that focus on developing green MSMB and the limited investment facility that delivered impact for business owners,” Mubariq said.
The second one is that there is no awareness of conventional bank and ability to access from business owners. “It means, MSMB owners need to get fund access to get into four sustainable economic work frames, such as, fund access, MSMB capacity development, technology access, and market access,” he said.
Mubariq believed that Indonesia would have the incredible potential to develop sustainable businesses. “Until now MSMB contributed 61^ of gross domestic product for the country. If ‘business as usual’ model can be changed to be sustainable one, this sector would potentially deliver big impacts to reduce carbon emission target in national scale and get economic development,” he said. (T2)
