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Indonesian Consumption And Production Trends: Producer and Market Are Ready Have Ecolable Product

Irwan Gunawan, Direktur Program Kalimantan memberikan kata sambutan pembukaan konferensi pers_WWF-Indonesia-Des Syafrizal
Irwan Gunawan, KalimantanProgram Director of WWF-Indonesia delivers opening speech, ©WWF-Indonesia/Des Syafrizal

Jakarta, September 18, 2017 – A survey by WWF-Indonesia and Nielsen in 2017 shows that 63% of Indonesian consumers are willing to have eco-friendly products at higher prices. This shows a significant increase of consumer awareness in consuming eco-friendly products and indicates the readiness of domestic market to provide sustainable products. Consumer perception survey was conducted by WWF and Nielsen on 916 respondents in Jakarta, Medan, Surabaya, Denpasar and Makassar representing upper middle class consumers aged 15-45 years. The survey was conducted from June to July in 2017.

 The reasons given by consumers are mainly because of immidiate global warming effects, sense of responsibility from daily destructive activities (61%) and pride for contributing to an environtmental conservation (52%). Regarding to “Beli Yang Baik” Campaign initiated by WWF-Indonesia in Juni 2015, 34% of respondents recognize that campaign and 72% of them believe that they understand the campaign easily.

“The result of this perception survey explains the increasing awareness of Indonesian consumers towards eco-friendly products. However, this awareness has not been accomodated by retailers that prioritize eco-friendly products in their stores. This is probably caused by the lack of sustainable bussiness practice understanding and perception on the risk of selling sustainable products,” stated Hety Riatono, Director Consumer Insights Nielsen Survey.

Along with this result of survey launching, in production sector, 2 partners of WWF-Indonesia located in Kalimantan are success in achieving ecolabel certifications for their commodities. They are Perkumpulan Petani Rotan Katingan (P2RK) or Katingan Rattan Farmers Association which achieves FSC (Forest Stewardship Council) for its rattan commodity and PT Mustika Minanusa Aurora (PT MMA), a shrimp processing company which achieves ASC (Aquaculture Stewardship Council) for its Giant Tiger Shrimp commodity.

Naturally, rattan prevents deforestation due to their dependence on healthy forest ecosystems. The implementation of FSC FM/CoC (Forest Management/Chain of Custody) certification standards by P2RK is believed to increase the value of natural rattan products, so that it can prevent the tendency of local community to convert their natural forest of rattan sources into other agricultural fields. Under the FSC FM/CoC scheme, the issue of rattan raw materials traceability in P2RK member areas becomes more secure because it is verified by an independent party.

By this achievement, P2RK is being the pioneer for FSC-rattan certification in Indonesia. The certified area covers 690.58 Ha with 209 farmers coming from 6 sub-district and 21 villages in Katingan District. The estimated annual commercial production is around 1.002,75tons/year, 9 tyoes of rattan. This FSC is expected to boost the bargaining power of rattan farmers and may prevent the land conversion causing deforestation. “Rattan is our greatest hope in restoring forest in Katingan and improving the domestic economy as well. P2RK believes that this FSC certification achievement able to increase the economic value of rattan and also the demand for rattan nationally and internationally”, said Oscar Sukah, the chief of P2RK.

In fishery sector, PT Mustika Minanusa Aurora is the first company in Indonesia which succesfully obtains ASC certification for Giant Tiger Shrimp commodity. PT Mustika Minanusa Aurora applies traditional farming system without aeration and without feed. By this system, PT Mustika Minanusa Aurora prioritizes mangrove conservation as the main supporting factor of shrimp production. The annual production reaches 20 tons and until this recent time, this company has contributed to preserve mangrove area, 30 Ha in Tarakan and Bulungan District, North Kalimantan.

The obtaining of ASC certification signifies the ability of PT Mustika Minanusa Aurora and its farmers to implement conservation practices, protecting mangrove habitat, decreasing threats on biodiversity and improving the quality of product by maintaining water quality and minimizing shrimp disease as well. This achievement also proves that traditional farming is able to compete with other intensive aquaculture industries towards international ecolabel certification.

“The aquaculture practices implemented by PT Mustika Minanusa Aurora has applied all responsible aquaculture farming standarts and has been proven by the ASC certification. For that reason, WWF encourages market to support the implementation of similar farming practices by other bussiness actors,” said Abdullah Habibi, FIP & AIP Manager of WWF-Indonesia ”

 The growing awareness of Indonesian consumers in consuming eco-friendly products and increasing number of producers that are capable to produce ecolabel certified products mark the progress and readiness of Indonesia’s industry and market to implement production and consumption practices that considering the economic, social and environmental aspects. In the production sector, industrial scale businesses as well as the scale of Indonesian society have proven their ability to meet the best industry and management requirements in the world. Through public campaigning and advocacy efforts to governments and private parties, WWF-Indonesia will expand the implementation of sustainable consumption and production to other commodities in order to acheive the conservation mission, balancing the nature and human life.

For further information, please kindly contact:

  • Margareth Meutia | Footprint Campaign Coordinator, WWF-Indonesia | WWF-Indonesia | +6281 5881 2844
  • Joko Sarjito | Forest Commodity and Market Transformation, WWF-Indonesia | | +6281 3478 30331
  • Abdullah Habibi | FIP & AIP Manager, WWF-Indonesia | | +6281 1811 4193


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