Jakarta, January 24 – The International Finance Corporation’s Program for Eastern Indonesia Small and Medium-sized Enterprise Development, or PENSA and The Nature Conservancy signed a memorandum of understanding today, forming a partnership program linking private sector development with the sustainable management of forest and marine habitats in Eastern Indonesia.
Three key areas of opportunity have initially been identified: investigating the viability of establishing community-based forestry businesses in East Kalimantan; encouraging the use of environmentally responsible timber in the furniture industry; and supporting the development of conservation-based tourism around the Komodo National Park.
The partnership aims to increase environmental sustainability and nature conservation by aligning those objectives with economic incentives. By developing a business case for sustainability, the partnership will look to produce three bottom line impacts – social, environmental and economic.
“A key role for IFC is helping clients become aware of opportunities to gain from sustainability,” said IFC Country Manager for Indonesia German Vegarra. “Improved sustainability performance can provide a variety of business benefits, such as increased revenues, cost savings, risk reduction and increased access to capital.”
By linking IFC’s global experience in developing the business case for sustainability with TNC’s experience in conserving Indonesia’s natural resources, the partnership aims to develop innovative solutions that are both environmentally sustainable and financially profitable.
“The Nature Conservancy has a history of utilizing innovative financial mechanisms to promote conservation across the globe,” said Russell Leiman, Director of Asia-Pacific programs for TNC. “If conservation efforts are to be maintained for the long-term, they must go hand in hand with economic development. Supporting business enterprises that grow and are sustained through the conservation and protection of Indonesia’s natural resources is crucial.”
IFC-PENSA, is one of IFC’s technical assistance facilities supporting small and medium enterprises. IFC is the private sector arm of the World Bank Group. The PENSA facility has a five-year mandate and has been co-funded by IFC and the governments of Australia, Canada, Japan, Switzerland and The Netherlands with initial funding commitments of $22 million.
The mission of IFC is to promote sustainable private sector investment in developing countries, reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.
The Nature Conservancy is a United States non-profit corporation operating internationally with the global mission of preserving the plants, animals and natural communities that represent the diversity of life on earth by protecting the lands and waters they need to survive. TNC has contributed to this mission in Indonesia for 12 years by promoting conservation and sustainable resource management in the country's forest and marine habitats.
For more information, contact:
Nia Sarinastiti
Communication Officer
IFC-PENSA
JSX Building Tower II, 13th fl.
Nsarinastiti@ifc.org
Direct line : +62-21-5299 3134
Cellular : +62-812-3853433 | Louisa Tuhatu
Director of Communications
The Nature Conservancy
Jl. Wijaya XIII No. 9
Jakarta Selatan 12160
ltuhatu@tnc.org
Tel: +62-21-724-7152 |
