MEET THE INDONESIAN BUSINESSES GREENING UP THEIR ACT. HARUMI SUPIT LOOKS AT HOW THEY SEEK TO MIX ECOCREDENTIALS WITH PROFITABILITY

Recent oil hikes have raised public awareness about the world’s limited resources. But in Indonesia, where there are no subsidies or common standards set for industries, how are green businesses translating this momentum into profit?

Fit and healthy from weekends spent at the Pulau Macan Village and Eco-Resort, Jakarta-raised founder and former political consultant Roderigo des Tombe says his project, which began rolling in March 2008, is already breaking even.

He says he has a simple eco-resort business model, which he believes is perfect for Indonesia, because it has the potential to protect the environment and generate foreign exchange.

“We take an existing place, we lease it, and we make minimal improvements to make it comfortable. With a minimal investment, you have a comfortable place. It’s a real win-win situation for everyone.”

While eco-tourism ventures can take off relatively quickly, many green businesses face a hard slog in their first years of existence, relying on capital infusions and simple passion to keep things going – until they hit on a winning formula.

Former Citibank employee Karen Isdaryono knows about passion. Her recycled paper crafts business, Kura Craft, grew out of a hobby she started in 1991. “I’ve always loved paper, ever since I was a child. Every time people saw the items, they’d say they liked them. But I wasn’t very confident.”

Isdaryono was encouraged by the success of recycling ventures such XS Project, which exports bags made from recycled detergent and toothpaste wrappers to the United States and Australia. In 2008, she launched her former weekend interest turned business, buoyed by the support of a new business partner.

“The time is right. Five years ago, people didn’t appreciate [recycled products]. Now that the business is booming, it makes me push even harder to continue it.”

She is now brainstorming and creating new green products, as well as plotting new ways to market and differentiate her items from the slew of recycled products which have become fashionable in the region.

But being fashionable isn’t an issue for Paul Terweel. The owner and operator of Kaliaget Organic farm says organic farming is truly a long-term process. “We still have a lot of old thinking about agriculture, and of making a quick buck.”

So far, the farm covers its operational costs, but Terweel says he has yet to see windfall profits, which is in part due to a focus on research into different seeds and techniques – much to the detriment of marketing and distribution. The types of rice he produces include long grain Cere Beureum and round grain Bali Red.

For Terweel, organic farming is more than a profit-making enterprise. “It is an agri-culture, not an agri-business.”

He envisions a future where organic farming is key to a different cultural paradigm, where the soil is tilled in a sustainable manner and local farmers share in the profits.

Indonesia has seen a spike in interest over the last few years. Locally grown organic vegetables are available in many supermarket chains now, and local organic food restaurants such as Warung Daun and Healthy Choice are thriving, despite a lack of public information.

Indeed, institutional support can make a huge difference. Solare, a solar-powered lighting business founded by a professor of robotics from the prestigious Institut Teknologi Bandung (ITB), is a good example.

The company struggled after launching in 2003, relying on cash infusions from dedicated investors who saw a profitable future in renewable energy. Gradually, Solare managed to snag orders from local governments interested in off-the-grid lighting solutions.

New products such as public road lighting solutions have helped bolster interest, and Solare’s exhibits now appear in many places, says Rita Margaretha, a Solare member who has been involved in the project from the start.

“We weren’t profitable at first. But since our exhibits can be found in many places now, people – including the government – are starting to become more interested in environmentally friendly solutions,” she says.

As with any business, profits play a role in longevity, steered by principles such as finding the right target market and effective marketing. But for green businesses, immediate profits aren’t the only measuring stick – and many practitioners are quite happy to stay the course until the market eventually catches up to their practices and beliefs.

With Indonesia’s ever-increasing population, a growing premium being placed on scarce resources such as electricity and clean water, and heightening public awareness of the environmental problems we face, that time may be just around the corner.

Keys to greener business

Sustainability: Look for expansion which doesn’t deplete natural resources.

Buy local: Purchase supplies from local businesses to save on energy used in transportation. 

Recycle: Recycling paper, cans and bottles is eco-friendly, and makes very good business sense. 

Cleaner energy: Consider switching to alternative energy sources such as solarpowered lighting. 

Reduce wastage: Reuse supplies and think twice about buying new items. 

Contacts

HEALTHY CHOICE Bellagio Organic Blood Type Cuisine, Ground Floor Unit OG 13-14, Kuningan, Jakarta, tel: (0)21 3002 9770, www.healthychoiceindonesia.com 

KALIAGET ORGANIC FARM Pasirawi, Rawamerta, Karawang, West Java, tel: (0)819 3224 4243 

KURA CRAFT Jl. Haji Kemang No. 38, Museum Layang-Layang Indonesia, Jakarta, tel: (0)21 765 8075 

PULAU MACAN VILLAGE AND ECO-RESORT Pulau Macan, The Thousand Islands, tel: (0)21 765 8010, www.pulaumacan.com 

SOLARE Setrasari Mall, Block B2-45, Bandung, tel: (0)22 2201 9621 

WARUNG DAUN Jln Wolter Mongisidi No. 41, Kebayoran Baru, Jakarta, tel: (0)21 7278 6137 

XS PROJECT Jln Kyai Haji Mohammad Naim I 49B, Cipete, Jakarta, tel: (0)21 739 3324, www.xsprojectgroup.com