Mendag: ESG is not an Option, but a Necessity

REPUBLIKA.CO.ID, JAKARTA — Minister of Trade Zulkifli Hasan expressed his appreciation to the Republic and the recipients of the ESG 2024 Award. In his speech, Zulkifli stressed the implementation of Environmental, Social, and Governance (ESG) is no longer an option, but a global imperative that affects various sectors, including the economy and the environment.

“I appreciate Republika for the award given to companies that have followed ESG practice. Environmental sustainability is now no longer an option, but becomes a necessity for all of us, because this problem is faced by the whole world, not only Indonesia,” Zulkifli said at the ESG Republika 2024 Anugerah event on Thursday (19/9/2024).

He added that the implementation of ESG will be a decisive factor in Indonesia's economic growth in the future. This is especially relevant as Indonesia prepares to enter a transition period of government from President Joko Widodo to President-elect Prabowo Subianto, who will be sworn in on October 20, 2024.

Zulkifli expressed his optimism regarding Indonesia's economic targets under the leadership of Prabowo Subianto. He hoped Indonesia could achieve economic growth above 6-7 percent in the next few years, but stressed that this success depended heavily on concern for the environment.

“Certainly Mr. Prabowo is very optimistic that we can achieve economic growth above 6-7 percent. However, this achievement is not possible without taking into account the ESG factor, which will greatly determine our success,” he emphasizes.

He also highlighted Indonesia's recent economic success, posting a high trade surplus in August 2024, even though the oil and gas sector is still in deficit. According to Zulkifli, Indonesia's trade surplus in August reached nearly 4.2 billion US dollars, and after accounting for the oil and gas deficit, the net surplus reached 2.9 billion US dollars.

“Our surplus after August is still in the range of 18.5 to 18.8 billion US dollars. Although the value is slightly down compared to last year, trading volumes have remained stable. Our inflation is also under control below 3 percent, which is about 2 percent,” he said.

Zulkifli also stressed the importance of cooperation between all stakeholders to realize Indonesia's vision of Forward 2045. According to him, synergies between governments, companies, Parliament, the media, and all elements of society are necessary to achieve inclusive and sustainable economic growth.

“The key to our success is cooperation. Cooperation between governments, corporations, the media, and all other stakeholders. If we unite, God willing what we aspire to be a forward Indonesia by 2045 can be achieved,” Zulkifli said.

The ESG Awards Republika 2024 awards companies that have implemented ESG principles well. The award is expected to be an inspiration for other companies to adopt sustainable business practices for the sake of growing an environmentally friendly economy.