Lestari Forum moderator Mysister Silvilona Tarigan (left) with Sustainable Finance Advisor at WWF-Indonesia Rizkia Sari Yudawinata (centre) and GRI Asean Network regional programme implementation manager Lany Harijanti (right) during the Lestari Forum in Jakarta, Indonesia.
JAKARTA, INDONESIA: The Lestari Forum 2025, themed “Sustainable Ecosystems Start with SME–Corporate Collaboration”, was held on May 8, at Studio 2 Menara Kompas, Central Jakarta.
This cross-sector dialogue platform aims to accelerate the development of a sustainable ecosystem in Indonesia through strategic partnerships between small and medium enterprises (SMEs) and large corporations.
The forum featured discussions on key topics such as mapping partnerships within the sustainable investment ecosystem, lessons learnt from long-term impact investing and strategies to win the Lestari Awards, an initiative that recognises outstanding sustainable business practices.
Mapping partnerships in a sustainable investment ecosystem
Sustainable Finance Advisor at WWF-Indonesia, Rizkia Sari Yudawinata, emphasised that SME decarbonisation efforts continue to face significant financial and structural barriers.
Limited technical capacity, restricted access to funding, and dependency on anchor buyers are among the key challenges. While providers of renewable energy solutions (RE ESCOs) are beginning to grow, energy efficiency energy service companies (EE ESCOs) still struggle due to high audit costs, a limited number of providers and the lack of bankable business models.
Moreover, strict collateral requirements and limited incentives further constrain SMEs’ access to green financing. Rizkia encouraged local banks to begin adopting approaches that have proven effective among international financial institutions, such as credit guarantee schemes, development finance institution (DFI) support, and leasing models facilitated through ESCOs.
ANGIN Advisory director Saskia Tjokro emphasised that corporations must proactively engage SMEs to avoid being left behind in the sustainability transition. “Through incubation, ESG and sustainability training, supply chain partnerships, and improved market access,” she explained.
She further noted that while impact investment funding has increased over the past five years, from 2019 to 2024, the number of transactions has slightly declined, suggesting a shift toward fewer but larger investments.
Meanwhile, smaller investors are becoming more active, as shown by rising transaction volumes and values. In the Indonesian context, interest from prospective impact investors continues to grow, particularly from international actors—indicating that the potential for sustainable and impact-driven investment remains significant.
Insights from sustainable investment practices
GRI Asean Network regional programme implementation manager Lany Harijanti shared insights and challenges from assisting SMEs in building ESG readiness.
She also highlighted ESG reporting approaches used to measure the long-term impact and contributions of such partnerships. Lany recommended the use of the Asean Simplified ESG Disclosure Guide for SMEs in supply chains, issued by ACMF.
However, she noted that many SMEs in Asean, including Indonesia, have yet to prioritise sustainability and admit they have never implemented related initiatives. Only a small fraction consistently monitor the impact of their operations across environmental, economic and social dimensions.
“Some might say, ‘It’s just reporting,’ but the sustainable reporting process actually helps organisations determine where they want to go. Because ultimately, sustainability is about understanding impact,” said Lany.
One of the key messages from the forum was the need to strengthen SME–corporate collaboration in a more strategic and targeted manner. Corporate sustainability funds are expected to go beyond internal programs and be channeled into concrete initiatives that build SME capacity.
KG Media sustainability vice–president Wisnu Nugroho expressed: “We hope to gain insights and also understand how sustainability funding from corporations can be allocated to help SMEs level up, integrate into supply chains, and, of course, allow companies to report those efforts in their respective ESG reports.”
Strategies for winning the Lestari Awards
Lestari Forum moderator Mysister (left) with Putra (centre) and BIKI chief executive officer Muhammad Hafid Rosidin (right) explore the extent SMEs have convinced the citizens.
In a special session about the Lestari Awards, the jury shared key evaluation criteria, one of which is the authenticity of the initiatives submitted.
“We certainly value more authentic initiatives. Sometimes a seemingly conventional programme can be overlooked, but upon closer examination, it proves highly impactful,” said Lestari Awards 2024 judge and managing director of the Energy Shift Institute Putra Adhiguna.
He also stressed the importance of inclusivity. “What stands out to us is when a corporation includes external stakeholders, communities and partner institutions, in its sustainability programmes.”
Putra further advised participants to begin their submissions with storytelling, rather than data alone. “We often default to numbers and statistics, which are important, of course, but what really captures attention is the story, start your submission with that.”
Don’t miss Lestari Awards 2025
The Lestari Awards 2025 is more than just an award, it is a platform to accelerate sustainable business transformation. Don’t miss your chance to be part of this impactful movement.
For more information and registration, visit Lestariawards.id
