Market Transformation Initiative Indonesia
Besides its significance as Indonesia primary commodities, they are important because of their impacts for biodiversity, water reserve and climate change. Unsustainable production will result in deforestation, green house gas emission and fisheries resource depletion.
WWF-Indonesia through Market Transformation Initiative (MTI) sees the importance of transforming production and consumption patterns. With efficient and responsible production along with significant demand for sustainable products, market can move towards sustainability.
Indonesia plays a significant role in changing global production and consumption. Indonesia is a primary producer of agriculture, forestry, fisheries and mining commodities. Based on World Economic Forum’s report, Indonesia is the world’s 17th largest economy and the 6th largest among developing countries. Economic growth is dynamic an annual rate of 5% between 2001-2010 and a very potential domestic market. Indonesia boast a potential domestic market—ranks 15th in the world—with a rapidly growing middle class. With a population of 237 million, Indonesia’s consumption will have an impact to global production and natural resources.
MTI Indonesia Strategy
MTI Indonesia uses strategic approach to transform market. Research conducted by MTI network has shown by shifting 20 per cent of demand towards sustainability, we can shift up to 50 per cent of production in the same direction. Therefore MTI Indonesia focus its work to influence major companies with the biggest impact on commodity demand.
Four strategies to achieve our goal:
- Multi stakeholder engagement, through credible third party and independent certification scheme. This scheme brings together each producers, consumers and relevant stakeholders. Currently MTI Indonesia has developed engagement with RSPO, FSC, MSC, and ASC.
- Corporate engagement. MTI Indonesia engaged directly with strategic companies to improve activities and supply chain, as well as to reduce their environmental impact.
- Government and financial institution engagement, to influence investment and incentive policy impacting domestic and global trade.
- Public campaign to raise awareness and change public behaviour towards sustainable consumption and impact of ecological foot print.