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Big Indonesian Startups are Eyeing Green Business Potentials

Big Indonesian Startups are Eyeing Green Business Potentials

Startups in Indonesia such as Tokopedia and Gojek are starting to look to environmentally friendly businesses. However, investors consider that start-ups with social and environmental impacts are more desirable, rather than just focusing on the green economy.

Tokopedia focuses on providing a stage for sales partners who offer environmentally friendly concepts such as Demi Bumi, Burgreens, Custombox Indonesia, and NutriMart. Tokopedia Ekhel Chandra Wijaya’s External Communications Senior Lead hopes that this step will encourage the community to take part in protecting the environment.

Big Indonesian Startups are Eyeing Green Business Potentials

“In addition, it will contribute to Indonesia’s economic recovery amidst the corona pandemic,” Ekhel said in a press release last weekend (19/2). Custombox Indonesia offers packaging box solutions for businesses from various fields, from food, fashion to beauty.

This packaging is made from recycled kraft paper. Meanwhile, Nutrifood places waste dropboxes for paper, plastic and glass packaging in Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek).

Then, Demi Bumi markets various environmentally friendly products and packaging, such as bags recycled from curtain vitrases. Meanwhile, Burgreens is engaged in the food and beverage industry that uses bioplastics made from cassava.

Tokopedia has Focused on Providing Support to Environmentally Friendly Sellers

Previously, Ekhel said that Tokopedia focused on providing a stage for environmentally friendly sellers on the platform to reduce waste consumption. Moreover, a study by the Indonesian Institute of Sciences (LIPI) shows that 96% of package goods delivered to e-commerce users are wrapped in thick plastic and bubble wrap.

The study was conducted from April 20 to May 5, 2020. This research is contained in a study entitled ‘The Impact of Large-Scale Social Restrictions (PSBB) and Work From Home (WFH) on Plastic Waste in the Greater Jakarta Area.

Big Indonesian Startups are Eyeing Green Business Potentials

Another e-commerce platform, JD.ID, launched a program and channel specifically for sustainable fashion by hooking up with Tencel in November last year. This brand owned by Lenzing Group offers clothing made from natural fibers.

Meanwhile, Gojek launched a special service, GoGreener, which was launched in September last year. This feature comes in the form of a random card or digital shuffle card on the front page of the application. The service allows users to calculate the carbon emissions emitted per day, then convert them by planting trees.

Gojek collaborates with Jejak.in to provide this product. There are at least 1,500 mangrove or mangrove trees purchased by Gojek users. The tree was planted in Jakarta, Demak, and Bontang at the end of last year.

GoGreener Carbon Offset Program Manager Yoanita Simanjuntak said the company is expanding the carbon coverage that will be absorbed this year. “Especially now that there is still a trend of working from home or WFH. Certainly, the use of electronic devices (which produce carbon emissions) is getting higher,” he said during a virtual press conference, three weeks ago (4/2).

Another Company that Focuses on the Green Economy

Meanwhile, Jejak.in is one of the startups participating in the Gojek Xcelerate acceleration program. Apart from Jejak.in, other green economy business models include Waste4Change, Smash, and Evo and Co. These companies started their businesses focused on the green economy.

Big Indonesian Startups are Eyeing Green Business Potentials

Meanwhile, GoGreener services at Gojek are not included in the core business. Then, Tokopedia and JD.ID are still focusing on campaign programs. Research by Bain and Company notes that countries in Southeast Asia have been slow to switch to green economies. In fact, the transformation of the business to a greener economy in the region offers benefits of US$ 1 trillion per year by 2030.

Bain and Company also believes that countries in the region have the potential to lead in presenting export opportunities for innovative products, expanding to new services, and capturing global market share in the green economy.

So far, one of the countries in Southeast Asia that has started to focus on sustainable development that focuses on a green economy is Singapore. This neighboring country launched the 2030 Green Plan on February 10.