JAKARTA—The United States, through the United States Agency for International Development (USAID)’s Sustainable Environmental Governance Across Regions (SEGAR) signed Memoranda of Understanding (MOU) with two Indonesian companies to improve sustainable commodity production and supply chain, land use management, and ensure that communities receive economic benefits derived from sustainable business practices.
“Business activities can be a driver of greenhouse gas emissions. However, businesses can also contribute to solutions to prevent, mitigate, and adapt to climate change,” said Jeff Cohen, USAID Indonesia Mission Director.
The two companies that signed the MOU are PT Dharma Satya Nusantara, Tbk and PT Sawit Sumber Mas Sarana, Tbk. Through SEGAR, USAID is supporting these companies to develop more sustainable commodity production methods that include peat and land fire prevention management and human-wildlife conflict mitigation among others.
“Sustainable economic development is everybody’s business. USAID is proud to work with both Indonesian businesses and the Government of Indonesia to achieve our shared sustainability and economic growth goals for generations to come,” added Cohen.
In addition, USAID through SEGAR also collaborates with the Accountability Framework Initiative (Afi), an initiative that supports businesses to strengthen environmental, social and governance (ESG) principles and practices in their supply chains. This partnership with Afi will expand and advance work to setting, implementing and monitoring effective commitments on deforestation, reducing the impact of ecosystem conversion from forest to productive concession, and human rights in ethical supply chains – including, among others ensuring that companies respect the rights of indigenous people and local communities as well as workers’ rights throughout all partners.
The Director of Forestry and Water Resources Conservation of the Ministry of National Development Planning (Bappenas) as the Implementing Agency of USAID SEGAR, Nur Hygiawati Rahayu, said, “Catastrophic biodiversity loss is one of the major risks that could pose a threat to the climate and environment in the next ten years (alongside extreme weather, climate action failure, and natural disasters). Companies and businesses can contribute more actively to an inclusive and sustainable green economy, through relevant ecosystem restoration and conservation programs to maintain carbon stocks, as well as biodiversity conservation. This event can be an avenue to foster mutual understanding and inspire more companies to implement ESG principles in the future.”