United NationsDepartment of Economic and Social Affairs Sustainable Development

Indonesia

INDONESIA-4 MAY 2006, CONFERENCE ROOM #4 AM
INDUSTRY AND POVERTY
STATEMENT BY
MR. DANA A. KARTAKUSUMA
ASSISTANT MINISTER, TECHNOLOGY AND SUSTAINABLE DEVELOPMENT
MINITSRTY OF ENVIRONMENT OF THE REPUBLIC OF INDONESIA
ON SESSION ON INDUSTRY AND POVERTY
4 MAY 2006, 10.00 am ? 1 pm, Conference Room 4
Cleaner production has been developed in Indonesia and today Indonesia has its own
Center for Cleaner Production, mostly supported by the German GTZ. Small scale
sectors like leather, textiles have been among industries participating in cleaner
production programmes. However some constraints remain to some industries as
psychological barriers that view environment measures as an additional cost to the
production. This has been somewhat resolved through awareness and improvement of
education among the participating industries. Also the use of other more attractive
terms such as ?Eco-efficiency? could attract the small scale industries in adopting the
principles of cleaner production.
I would like to draw your attention in funding for the poor coming from Multinational
Corporation in Indonesia. Through the ?Corporate Social Responsibility? (CSR) program,
a number of multinational companies have channeled a part of their revenue to local
society through various form of Community Development program, aiming at
empowering the community. However, low level of education of the local people and,
in some cases, too dominant intervention by the local authority, brought the source of
fund into wrong direction, including through the provision of ?fish? rather than the
?bait?.
Finally, with regards to the issue of remanufactured products, although contain good
quality, the remanufactured products imported to Indonesia may pose problems in
terms of the product life cycle assessment. When the utility of these products is gone,
then the product become waste. This means that the burden of the treatment of the
waste, particularly when it contains hazardous substances as in the case of electronic
wastes, remain the responsibility of the recipient country like Indonesia. This is even
worse, when the poor people who ?treat? the hazardous wastes, are low educated and
are not aware about the danger of treating such wastes without any skill required.
Stakeholders