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Menristek/Head of BRIN: Major Indonesian Companies Must Shift Focus From Short-Term Profit

November 28, 2019 3:44 pm

Press Release Kemenristek/BRIN
No: 264/SP/HM/BKKP/XI/2019

Nusa Dua – The Minister of Research and Technology/Head of National Research and Innovation Agency (BRIN) Bambang Permadi Soemantri Brodjonegoro noted that major corporations in Indonesia should no longer focus on efficiency-based profits. Rather, they should focus long-term gains that incorporate Sustainable Development Goals (SDG) into their core business activities instead of being relegated as corporate social responsibility (CSR).

“Sustainable profit is only possible if companies have a competitive business model that works regardless of the industry era. How does one ensure sustained profit in this turbulent times? The key is that companies should no longer emphasise on efficiency,” said Minister Bambang Brodjonegoro, speaking at the Asia Sustainability Reporting Rating (ASRRAT) 2019 and The 4th Sustainability Practitioner Conference (SPC) organised by the National Center for Sustainability Reporting (NCSR) at the Westin Resort, Nusa Dua, Bali on Saturday (23/11).

The Minister/Head of BRIN remarked that while efficiency does allow companies to be competitive, they must be able to keep up with current innovations and technology.

“If companies can improve their efficiency, their results will be strong and profits will be high. But don’t forget: efficiency is only possible if that company can adapt to current developments,” said the Minister.

Bambang Brodjonegoro said that to adapt means to become the innovation leader instead of passively keeping up with innovations and technological developments.

“I encourage major companies to licenses less from external parties or rely on technology imports. I understand that developing new technologies is not easy. But to win, to be competitive, we must master the technology. Better still, we create the technology. What I mean is we shouldn’t be followers, but we should try to be leaders. This is the way towards profit in the future,” added the Minister.

In addition to innovations, Bambang Brodjonegoro also highlighted the environment as a key part of SDGs. He remarked that waste products must be processed in such a way to create new energy instead of being processed by CSR programmes. In so doing, companies would be able to generate added value and reduce environmental impacts.

“In some parts of Indonesia, liquid waste and palm oil are used as the primary fuels in biomass power plants. At other locations, wood waste are be used to generate energy,” said the Minister.

In the occasion, the National Center for Sustainability Report (NCSR) presented the Asia Sustainability Reporting Rating (ASRRAT) 2019, a rating system to measure Indonesian and Asian companies’ consistency in incorporating SDGs in their core business activities or processes. In this year, the ASRRAT rated 41 companies and organisations from Indonesia, 3 from Malaysia, 2 from Singapore, 2 from the Philippines, and 2 from Bangladesh. The results of the ASRRAT 2019 are as follows:

Silver Rated Companies:

  1. PT APP Sinar Mas
  2. PT Bank Jatim Tbk.
  3. Suria Capital Holdings Berhad
  4. UOL Group Limited

Gold Rated Companies:

  1. PT ABM Investama Tbk.
  2. PT Angkasa Pura 1 (Persero)
  3. PT Austindo Nusantara Jaya Tbk.
  4. Bank Asia Limited
  5. PT Bank CIMB Niaga Tbk.
  6. PT Bank Maybank Indonesia Tbk.
  7. PT Bank Negara Indonesia (Persero) Tbk.
  8. PT Bank Pembangunan Daerah Jawa Barat dan Banten
  9. PT Bank Pembangunan Daerah Sumatera Selatan dan Bangka Belitung
  10. PT Bank Rakyat Indonesia (Persero) Tbk.
  11. PT Bio Farma (Persero)
  12. BPJS Ketenagakerjaan
  13. PT Bumi Resources Tbk.
  14. PT Indocement Tunggal Prakarsa Tbk.
  15. PT Indonesia Power
  16. PT Kaltim Prima Coal
  17. Kencana Agri Limited
  18. PT Kideco Jaya Agung (KIDECO)
  19. Development Agency of Amungme and Kamoro Community (LPMAK)
  20. Malayan Banking Berhad
  21. PT PELNI (Persero)
  22. PT Perkebunan Nusantara XI
  23. PT Pertamina (Persero)
  24. PT Pertamina EP Asset 4 Cepu Field
  25. PT Pertamina Gas
  26. PT Pupuk Sriwidjaja Palembang (PUSRI)
  27. Reswara Minergi Hartama
  28. Saka Indonesia Pangkah Limited
  29. San Roque Power Corporation
  30. PT Sarana Multi Infrastruktur (Persero)
  31. Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)
  32. SM Investments Corporation
  33. Star Energy Geothermal Wayang Windu Limited
  34. PT Timah Tbk.
  35. PT Tirta Investama (Danone-AQUA)
  36. PT United Tractors Tbk.
  37. PT Wijaya Karya (Persero) Tbk.

Platinum Rated Companies:

  1. PT Agincourt Resources
  2. PT Antam Tbk.
  3. PT Indo Tambangraya Megah Tbk.
  4. PT Perusahaan Gas Negara Tbk.
  5. Prime Bank Limited
  6. PT Pupuk Indonesia (Persero)
  7. PT Pupuk Kalimantan Timur (Pupuk Kaltim)
  8. Telekom Malaysia Berhad
  9. PT Vale Indonesia Tbk.

Attending the event was Amalia Adininggar Widyasanti, Lead Expert to the Minister of National Development Planning/Head of Economic Synergy and Financing, National Development Planning Agency; Ida Bagus Kade Subhiksu, Provincial Secretary of Bali; I Nyoman Mahaendra Yasa, Dean of the Faculty of Economics and Business of Universitas Udayana; and senior management of companies receiving the ASRRAT rating.

Bureau of Cooperation and Public Communications

Ministry of Research and Technology/National Research and Innovation Agency

and  National Center for Sustainability Reporting (NCSR)

Read more at https://ristekdikti.go.id/kabar/menristek-kepala-brin-perusahaan-besar-di-indonesia-tidak-dapat-lagi-berfokus-pada-profit-jangka-pendek/#RXHY7m60kJQQvlkW.99

GRI
Global Reporting Initiative
CSRA
Certified Sustainability Reporting Assuror
Standards
GRI Standard & AccountAbility (AA1000)
NCSR
National Center for Sustainability Reporting