When businesses discuss sustainability, carbon emissions often take centre stage. Companies increasingly measure their greenhouse gas emissions, set climate targets, and explore ways to reduce their environmental footprint. However, addressing climate change requires more than reducing emissions alone. Forests play a fundamental role in maintaining the balance of natural ecosystems. They absorb and store carbon, support biodiversity, regulate water cycles, center protect soil, and sustain the livelihoods of millions of people. When forests are degraded or destroyed, these interconnected environmental and social benefits are also threatened. For businesses, forest protection is not simply an environmental concern. It is closely linked to climate resilience, responsible sourcing, supply chain transparency, and long-term business sustainability. Understanding the connection between forests and sustainability is an important step towards building a more comprehensive approach to environmental responsibility. 1. Forests Do More Than Store Carbon Forests are widely recognised for their role in absorbing carbon dioxide from the atmosphere. Through photosynthesis, trees absorb carbon and store it in their trunks, branches, roots, and surrounding soils. This makes forests an important component of global climate regulation. However, their contribution extends far beyond carbon storage. Healthy forests provide habitats for wildlife, maintain soil stability, regulate water flows, and support the natural processes that sustain agriculture and other economic activities. Forest ecosystems also help regulate local temperatures and influence rainfall patterns. When forests are cleared or degraded, these functions can be disrupted. Deforestation can release stored carbon, reduce the capacity of ecosystems to absorb future emissions, and increase pressure on biodiversity and water resources. This is why climate strategies that focus exclusively on emissions reduction may overlook other environmental risks. Forest protection should therefore be considered an integral part of a broader sustainability strategy, alongside decarbonisation, biodiversity conservation, and responsible resource management. 2. Biodiversity Loss Is a Business and Environmental Risk Forests are among the world's most important ecosystems for biodiversity. They provide food, shelter, and breeding grounds for countless species, including plants, animals, fungi, and microorganisms. Forest degradation and habitat loss can disrupt ecological relationships and threaten species survival. These impacts can extend beyond wildlife, affecting the ecosystem services that people and businesses depend on. For example, agricultural production may depend on pollination, healthy soils, reliable water supplies, and natural pest regulation. Changes to surrounding ecosystems can undermine these functions and create additional challenges for farmers and agricultural supply chains. Businesses operating in forestry, agriculture, food production, and commodity trading may be particularly exposed to these risks. Protecting forests and their biodiversity can help maintain ecosystem functions, support more resilient production systems, and reduce the environmental impacts associated with land use. For businesses, this means that biodiversity considerations should not be separated from climate action or supply chain management. They are interconnected elements of a responsible sustainability approach. 3. Forest Protection Strengthens Supply Chain Resilience Deforestation can pose significant challenges for companies that rely on agricultural and forest-based commodities. Palm oil, timber, paper, coffee, cocoa, rubber, and other commodities may be linked to land-use change and deforestation risks, depending on how and where they are produced. As buyers, regulators, investors, and consumers increasingly scrutinize environmental practices, businesses may face growing expectations to demonstrate the origins of their raw materials and how they are produced. Limited visibility into sourcing locations can make it difficult to identify environmental risks, verify supplier information, and demonstrate compliance with applicable requirements. A more transparent supply chain can help businesses identify these risks earlier and make more informed sourcing decisions. Practical measures include: Mapping suppliers and sourcing locations. Improving traceability of raw materials. Assessing deforestation and land-use risks. Strengthening supplier due diligence. Maintaining reliable documentation and verification records. Engaging suppliers and smallholders to improve environmental practices. These measures can help companies improve supply chain visibility and support responsible sourcing. Forest protection is therefore not only about conserving natural ecosystems. It is also about strengthening the resilience and credibility of the supply chains that businesses depend on. 4. The Role of Forest Protection in Climate Resilience Forests contribute to climate resilience by helping regulate water cycles, stabilise soils, and reduce certain environmental risks. Forest vegetation can intercept rainfall, while roots help bind soil and support its structure. Depending on the landscape and local conditions, healthy forest ecosystems can help reduce soil erosion, regulate water flows, and protect watersheds. When forests are degraded, landscapes may become more vulnerable to erosion, sedimentation, and disruptions to water availability. The severity of these impacts depends on factors such as topography, soil characteristics, rainfall intensity, and land management practices. These changes can have consequences for agricultural production, infrastructure, water-dependent industries, and surrounding communities. As extreme weather events and climate-related disruptions become important considerations for businesses, protecting natural ecosystems can be part of a broader climate adaptation strategy. However, forest protection is not a substitute for reducing greenhouse gas emissions. Both actions are necessary to address different dimensions of the climate challenge. Companies should therefore consider forests within their broader environmental risk assessments, alongside emissions reduction, water stewardship, and climate adaptation planning. 5. Deforestation Regulations and Responsible Business Practices Forest protection is also increasingly relevant to international trade and corporate supply chain management. One important example is the European Union Deforestation Regulation (EUDR), which sets requirements for covered commodities and certain derived products placed on the EU market or exported from it. The regulation addresses commodities including cattle, cocoa, coffee, oil palm, rubber, soya, and wood, as well as specified products derived from them. Depending on the applicable requirements, relevant operators and traders may need to demonstrate that covered products meet the regulation's deforestation-free criteria, comply with relevant legislation in the country of production, and are supported by the required due diligence information. For businesses connected to Indonesian agricultural and forestry supply chains, understanding the regulation's scope and applicable implementation dates is important. Preparing for deforestation-related requirements may involve: Identifying products and commodities within the regulation's scope. Mapping relevant suppliers and production locations. Collecting and verifying geolocation information where required. Assessing deforestation and legality risks. Establishing appropriate due diligence procedures. Maintaining supporting information and documentation. It is important to distinguish regulatory compliance from voluntary sustainability certification. Certification can support certain sourcing and assurance processes, but it does not automatically replace the legal obligations applicable under EUDR or other regulations. Beyond compliance, stronger traceability and responsible sourcing practices can help businesses respond to customer expectations and improve their understanding of environmental risks throughout their supply chains. 6. Moving Towards Nature-Positive Business Practices Traditional corporate climate strategies often focus on measuring emissions and reducing carbon intensity. While these actions remain essential, a more comprehensive sustainability approach also considers how business activities affect nature. This is where the concept of nature-positive business becomes relevant. A nature-positive approach seeks to halt and reverse the loss of nature, including biodiversity and ecosystem integrity. In practice, this requires businesses to understand their impacts and dependencies on natural ecosystems and take credible action to address material risks. For companies with land-intensive operations or commodity-based supply chains, this may involve: Assessing nature-related impacts and dependencies Identify how business activities interact with forests, biodiversity, soil, and water resources. Preventing deforestation and ecosystem conversion Establish responsible sourcing policies and appropriate controls to avoid sourcing from prohibited or high-risk areas. Improving supply chain transparency Use traceability systems and supplier assessments to improve visibility over sourcing locations and production practices. Supporting restoration and conservation Where appropriate, work with credible partners and local stakeholders to support ecosystem restoration and forest conservation initiatives. Monitoring and reporting progress Establish measurable indicators and maintain reliable evidence of environmental performance. These actions should be based on credible data, appropriate safeguards, and measurable outcomes rather than broad environmental claims. Nature-positive business practices can help organisations move beyond isolated environmental initiatives towards a more integrated approach to sustainability. 7. What Businesses Can Do to Support Forest Protection Businesses do not need to wait for a major regulatory change to begin addressing deforestation risks. They can start by understanding their environmental impacts and the origins of the materials they use. The following steps provide a practical starting point. Step 1: Identify exposure to deforestation risks Review products, raw materials, sourcing regions, and business activities that may be associated with deforestation or ecosystem conversion. Step 2: Assess suppliers and sourcing locations Gather relevant supplier information and evaluate environmental risks throughout the supply chain. Step 3: Strengthen traceability and documentation Establish systems to record sourcing information, verify relevant claims, and maintain supporting evidence. Step 4: Integrate forest protection into sustainability policies Connect responsible sourcing commitments with procurement procedures, supplier engagement, risk management, and environmental objectives. Step 5: Monitor performance and improve continuously Review supplier data, assess progress against defined objectives, and update risk management measures as circumstances change. The right approach depends on the company's industry, supply chain structure, regulatory exposure, and sustainability priorities. By integrating forest protection into everyday business decisions, companies can take a more proactive approach to managing environmental risks and supporting responsible production. Sustainability Must Go Beyond Carbon Reducing greenhouse gas emissions remains essential to addressing climate change. However, long-term sustainability also depends on protecting the natural ecosystems that support biodiversity, water security, soil health, and human livelihoods. Forests are central to this effort. Protecting them can help mitigate climate change, strengthen ecosystem resilience, and support more responsible supply chains. For businesses, the challenge is to translate these environmental priorities into practical action through better risk assessment, transparent sourcing, effective traceability, and credible sustainability commitments. A comprehensive sustainability strategy should not only ask how much carbon a business emits, but also how its activities affect the natural systems on which its future depends. At Peterson Solutions Indonesia, understanding the relationship between environmental responsibility, supply chain transparency, and evolving sustainability requirements can help businesses take informed steps towards more responsible operations.

Jakarta, 7 October 2026 | Peterson Solutions Indonesia attended the Indonesia International Sustainability Forum (ISF) 2026, held on 6–7 October 2026 at Hotel Indonesia Kempinski Jakarta. The forum brought together government representatives, business leaders, investors, international organisations, experts and other stakeholders to discuss practical solutions and collaboration for sustainable growth. The participation reflects Peterson Solutions Indonesia’s commitment to staying informed about the latest developments in sustainability, climate action, responsible business practices and the transition towards a more resilient and low-carbon economy. Day 1 – Powering Low-Carbon Growth On 6 October 2026, Peterson Solutions Indonesia joined discussions under the theme “Powering Low-Carbon Growth”, focusing on how the low-carbon transition can strengthen economic competitiveness, encourage investment and create long-term value. The programme covered key areas including energy security and resilience, low-carbon industries, and resilient food and nature systems. The sessions explored topics such as energy security in the low-carbon era, green industry as a growth strategy, and the transformation of food systems within planetary boundaries. The thematic discussions also addressed responsible forestry, climate resilience, renewable energy, green power transitions and blue carbon financing. Day 2 – Enabling a Resilient & Liveable Future On 7 October 2026, the forum continued under the theme “Enabling a Resilient & Liveable Future”, focusing on the conditions needed to scale sustainable and inclusive growth. Key areas included water security and resilience, liveable cities and clean mobility, and mobilising finance, innovation and talent. Discussions covered issues including water security, competitive and liveable cities, sustainable infrastructure, climate-resilient development, green industrial policy, circular packaging, clean air, resilient agricultural supply chains and sustainable finance. Through its participation, Peterson Solutions Indonesia gained valuable insights into emerging sustainability trends, policy directions and practical approaches being discussed by stakeholders across Indonesia and internationally. These insights are relevant to the company’s work in supporting organisations in addressing sustainability, responsible supply chains, environmental challenges and evolving market expectations. Peterson Solutions Indonesia’s participation in ISF 2026 demonstrates its commitment to remaining up to date with important sustainability developments and actively engaging with issues that shape the future of responsible business. By continuously following global and national sustainability discussions, Peterson Solutions Indonesia aims to ensure that its knowledge, perspectives and services remain relevant to the evolving needs of its clients and stakeholders.

EUDR for FMCG Companies: Supply Chain Challenges & Readiness From Regulatory Compliance to Supply Chain Readiness The European Union Deforestation Regulation (EUDR) is becoming increasingly important for companies operating global supply chains. For the Fast-Moving Consumer Goods (FMCG) sector, EUDR is not simply an environmental requirement. It can influence how companies select and evaluate suppliers, ensure raw material traceability, manage supply chain data, conduct risk assessments, and ensure that products are ready for the European Union market. With the current implementation date for large and medium-sized companies set for 30 December 2026, FMCG companies need to move beyond simply understanding EUDR and begin building supply chains that are ready to meet due diligence requirements. What Does EUDR Actually Require? There are three key requirements that relevant products must fulfil: EUDR Compliance Requirements 01 | Deforestation-Free: Products must not originate from land that has been subject to deforestation or forest degradation as defined under the regulation. 02 | Legal Production: Commodities must be produced in accordance with the relevant legislation in the country of production. 03 | Due Diligence Statement: Products must be covered by a Due Diligence Statement (DDS) before being placed on the European Union market or exported from the EU. Why Is EUDR Relevant to FMCG Companies? EUDR covers seven key commodities associated with deforestation: Cattle Cocoa Coffee Oil palm Rubber Soya Wood For FMCG companies, these commodities may enter the supply chain through a wide range of raw materials, ingredients, packaging materials and other products. This makes supply chain visibility and traceability increasingly important. Challenges for FMCG Companies in Addressing EUDR One of the key changes introduced by EUDR is the increased need for traceability down to the production location. Companies need to understand the following supply chain: Finished Product → Raw Material → Supplier → Processor/Trader → Production Location The implementation of EUDR presents several challenges for FMCG companies, particularly due to the complexity of their supply chains and the number of parties involved. Key challenges include: Complex Supply Chains FMCG companies typically operate long and complex supply chains involving multiple suppliers, processors, traders and producers. This can make it difficult to trace commodities back to their actual production locations. Limited Traceability Available information often only covers the supplier's name or country of origin. However, EUDR readiness requires greater visibility of the commodity's origin and production location. Geolocation Data The availability of accurate geolocation data is one of the key challenges. Companies need to ensure that production location information is available, accurate and traceable to support the due diligence process. Supplier Readiness The level of readiness can vary significantly between suppliers. Not all suppliers have established traceability systems, adequate documentation or the capability to provide the data required to meet EUDR requirements. Data Quality & Consistency Data collected from different suppliers may vary in format, completeness and quality. Companies therefore need to ensure that supply chain data is consistent, accurate, verifiable and properly documented. Risk Assessment & Mitigation Companies need to assess risks related to deforestation, legal production and their wider supply chains. Where risks or information gaps are identified, appropriate mitigation measures need to be determined and implemented. Cross-Functional Coordination EUDR is not solely the responsibility of the Sustainability team. Successful implementation requires collaboration across Procurement, Supply Chain, Quality, Legal/Compliance, IT/Data, Sustainability and Management to ensure that processes, data and documentation are managed effectively. What Should FMCG Companies Prepare? Companies can begin their EUDR preparation through five key stages: From Compliance to Supply Chain Resilience EUDR presents new challenges for FMCG companies. However, preparing for EUDR can also provide an opportunity to strengthen broader business systems and supply chain resilience. Better Traceability Companies can gain greater visibility of the origin of their raw materials. Better Supplier Management Companies can identify suppliers with gaps in traceability, documentation and data readiness. Better Risk Management Deforestation, legality and supply chain risks can be managed in a more systematic and structured manner. Better Data Quality Supply chain information can become more structured, consistent and verifiable. Better Market Readiness Companies can become better prepared to meet the requirements of customers and markets applying deforestation-related standards. Stronger Sustainability Governance EUDR can be integrated into broader sustainability, responsible sourcing, procurement and risk management systems. Referensi : 2. European Commission - EUDR ImplementationEuropean Commission - EUDR Implementation Resources 3. European Commission - Understanding Due DiligenceEuropean Commission - Understand Due Diligence 4. EUR-Le- Regulation EU) 2023/1115EUR-Le - EUDR Consolidated Regulation 5. European Commission - EUDR Information SystemEuropean Commission - EUDR Information System

Indonesia is entering a new era of environmental governance. As environmental, social, and governance (ESG) expectations continue to rise globally, governments are strengthening regulations to ensure businesses operate responsibly and minimise environmental impacts. In Indonesia, this commitment is reflected in the issuance of Minister of Environment/Environmental Control Agency Regulation (Permen LH/BPLH) No. 6 of 2026 concerning Environmental Supervision and Administrative Sanctions. The regulation represents more than a routine legislative update. It marks a significant shift towards a risk-based, transparent, and more enforceable environmental compliance system, reinforcing the government's ability to monitor business activities and respond more effectively to environmental violations. For organisations operating in Indonesia, particularly those in environmentally intensive industries, understanding this regulation is essential not only to remain compliant but also to strengthen long-term business resilience and ESG performance. What is Permen LH/BPLH No. 6 of 2026? Permen LH/BPLH No. 6 of 2026 is a ministerial regulation issued by the Ministry of Environment and the Environmental Control Agency (BPLH) that establishes procedures for environmental supervision and the implementation of administrative sanctions. The regulation provides a comprehensive framework governing how environmental compliance is monitored, how inspections are conducted, and how administrative enforcement measures are applied when businesses fail to meet their environmental obligations. Unlike previous regulations, this framework introduces a more structured and systematic supervision process by adopting a risk-based approach, enabling regulatory authorities to focus resources on activities that present the greatest environmental risks. The regulation also clarifies the respective responsibilities of the central government and regional authorities, ensuring greater consistency in environmental oversight throughout Indonesia. Ultimately, the regulation aims to improve environmental protection while providing greater legal certainty for both regulators and businesses. Permen LH/BPLH No. 6 of 2026 was therefore introduced to: strengthen environmental law enforcement; improve coordination between central and regional governments; establish a risk-based environmental supervision system; enhance legal certainty for businesses; improve consistency in inspection procedures; standardise the implementation of administrative sanctions; and ensure environmental supervision supports Indonesia's broader sustainable development agenda. The regulation also reflects Indonesia's growing commitment to international sustainability expectations, where regulators, investors, financial institutions, and global supply chains increasingly expect businesses to demonstrate effective environmental governance rather than merely obtaining permits. How Does This Regulation Fit into Indonesia's Environmental Regulatory Journey? The issuance of Permen LH/BPLH No. 6 of 2026 is part of a broader regulatory transformation that has taken place over the last several years. 2021 - Government Regulation No. 22 of 2021 introduced major reforms to environmental protection and management under the Job Creation Law. It replaced traditional environmental permits with Environmental Approval and integrated environmental compliance into Indonesia's new business licensing system. 2024 - The Ministry issued Permen LHK No. 14 of 2024, providing guidance on environmental supervision and administrative sanctions. While this regulation established important supervisory mechanisms, implementation revealed opportunities to improve consistency, inspection procedures, and coordination among authorities. 2025 - The Government introduced Government Regulation No. 28 of 2025, further strengthening Indonesia's Risk-Based Business Licensing system and requiring greater alignment across sectoral regulations. 2026 - To support these broader reforms, the Ministry issued Permen LH/BPLH No. 6 of 2026, replacing the previous ministerial regulation with a more comprehensive supervision and enforcement framework. Timeline of Indonesia's Environmental Supervision Reform Year Regulatory Milestone 2021 Government Regulation No. 22 of 2021 establishes Indonesia's modern environmental protection framework. 2021–2024 Environmental Approval becomes integrated into the OSS Risk-Based Licensing System. 2024 Permen LHK No. 14 of 2024 introduces procedures for environmental supervision and administrative sanctions. 2025 Government Regulation No. 28 of 2025 strengthens Indonesia's Risk-Based Business Licensing framework. 25 May 2026 Permen LH/BPLH No. 6 of 2026 is officially enacted. 15 June 2026 The regulation enters into force nationwide. Key Highlights of Permen LH/BPLH No. 6 of 2026 1. Risk-Based Environmental Supervision Environmental inspections are now prioritised based on: Business risk level Environmental complexity Compliance history PROPER performance Potential environmental impacts Companies with higher risks or repeated non-compliance are more likely to receive inspections. 2. Stronger Government Authority The Ministry may take over supervision from regional governments if: Serious environmental violations occur Local governments fail to conduct supervision Environmental damage exceeds regional capacity Major legal violations are identified This significantly strengthens central government intervention. 3. Two Types of Environmental Inspections The regulation introduces two supervision mechanisms: Regular Supervision Site inspections Virtual inspections Report reviews Incidental Supervision Public complaints Suspected violations Reports from industrial estate management Direct assignment by the Minister 4. Expanded Powers for Environmental Inspectors Environmental inspectors (PPLH) are authorised to: Enter facilities Review documents Collect environmental samples Take photographs and videos Inspect equipment Stop ongoing environmental violations immediately when necessary 5. Clearer Administrative Sanctions Administrative sanctions now include: Written Warning Government Coercive Measures Administrative Fine Suspension of Business Licence Revocation of Business Licence Administrative fines may reach up to IDR 3 billion, depending on the severity and type of violation. What's New Compared with Permen LHK No. 14 of 2024? Aspect Permen LHK No. 14/2024 Permen LH/BPLH No. 6/2026 Regulatory approach Environmental supervision More comprehensive supervision and enforcement Inspection approach Conventional Risk-based inspection planning Central Government intervention Limited Stronger takeover authority for serious violations Inspection method Mostly field inspections Field inspections, virtual inspections, and document review OSS integration Limited Mandatory integration with OSS Inspector authority General Expanded investigative authority Administrative sanctions Available More structured with clearer enforcement process Environmental evidence Less detailed Standardised reporting and evidence collection Which Industries Will Be Most Affected? The regulation applies broadly to businesses requiring environmental approvals. Industries with significant environmental impacts should pay particular attention, including: Palm Oil & Agriculture Mining & Minerals Forestry & Timber Manufacturing Food & Beverage Chemical Industry Pulp & Paper Energy & Power Generation Oil & Gas Industrial Estates Waste Management Infrastructure & Construction Logistics & Ports Companies managing wastewater, emissions, hazardous waste (B3), biodiversity, peatlands, mangroves, coral reefs, or other sensitive environmental aspects will likely face greater scrutiny How Should Companies Prepare? Businesses should move beyond minimum regulatory compliance and establish robust environmental governance systems. Key actions include: Review Environmental Permits Ensure Environmental Approval, Business Licences, and technical approvals remain valid and reflect current operations. Conduct Compliance Gap Assessments Evaluate compliance against legal obligations, permit conditions, and environmental management plans (AMDAL, UKL-UPL, RKL-RPL). Strengthen Environmental Monitoring Regularly monitor wastewater, emissions, hazardous waste, biodiversity, and other environmental performance indicators. Improve Documentation Maintain complete, organised, and inspection-ready environmental records. Prepare for Environmental Inspections Develop internal procedures, conduct mock inspections, and ensure personnel are prepared for both scheduled and unannounced inspections. Permen LH/BPLH No. 6 of 2026 marks a significant shift in Indonesia's environmental enforcement framework. By introducing risk-based supervision, stronger inspection powers, enhanced OSS integration, and clearer administrative sanctions, the regulation encourages businesses to adopt a more proactive and systematic approach to environmental compliance. For organisations operating in environmentally sensitive sectors, early preparation is essential not only to avoid regulatory sanctions but also to enhance operational resilience, improve ESG performance, and build long-term stakeholder trust. Reference : JDIH KLH/BPLH

Press Release - GSDC 2026 Tangerang, Indonesia – 25 June 2026 – Peterson Solutions Indonesia reaffirmed its commitment to advancing sustainable development through its participation in the Global Sustainable Development Congress (GSDC) 2026, held from 22–25 June 2026 at the Indonesia Convention Exhibition (ICE BSD), Tangerang. Throughout the four-day congress, Peterson Solutions Indonesia participated as an exhibitor, hosting a dedicated booth that served as a platform for discussion, collaboration, and networking with stakeholders from industry, academia, government, international institutions, and global organisations. The company's presence reflected its ongoing commitment to expanding strategic partnerships that support the implementation of more sustainable and resilient business practices. The Global Sustainable Development Congress is an international forum that brings together global leaders to exchange ideas, innovative solutions, and collaborative initiatives aimed at accelerating the achievement of the Sustainable Development Goals (SDGs). The event featured a comprehensive programme of conferences, panel discussions, workshops, and cross-sector networking sessions. Four Days of Collaboration and Knowledge Exchange Day One – 22 June 2026 The congress officially opened with keynote sessions featuring global leaders from government, industry, academia, and international organisations. Discussions highlighted the importance of global collaboration, innovation, and sustainable investment as key drivers for achieving the SDGs. On the opening day, Peterson Solutions Indonesia welcomed delegates to its exhibition booth to discuss sustainability solutions and sustainable supply chain development. Day Two – 23 June 2026 The second day marked a key milestone for Peterson Solutions Indonesia as Romain Pradier, Senior Program Manager & Sustainability Consultant, joined the congress as a speaker in the session entitled "Building Resilient Sustainable Supply Chains." During his presentation, Romain emphasised the importance of building resilient supply chains by strengthening supplier capabilities, enhancing data transparency, and implementing credible verification and certification processes. He also highlighted that resilient supply chains should be built upon three key pillars environmental resilience, economic resilience, and social resilience to generate long-term value for businesses while creating positive impacts for people and the environment. In addition to the speaking session, Peterson Solutions Indonesia's booth continued to serve as a hub for discussions on ESG strategy, supply chain resilience, responsible sourcing, and opportunities for collaboration with organisations committed to sustainability. Day Three – 24 June 2026 The third day focused on panel discussions, workshops, and business networking sessions exploring sustainability implementation, green innovation, sustainable finance, and stronger collaboration between the public and private sectors. Peterson Solutions Indonesia continued to engage with prospective strategic partners while showcasing its sustainability consulting services to visitors. Day Four – 25 June 2026 The final day of the congress provided an opportunity to strengthen the relationships established throughout the event. Closing sessions reinforced the importance of collective action and cross-sector collaboration in driving sustainable development. Peterson Solutions Indonesia concluded its participation with optimism about future partnerships that will contribute to sustainable business transformation in Indonesia and beyond. Strengthening Collaboration for a More Sustainable Future Peterson Solutions Indonesia's participation in the Global Sustainable Development Congress 2026 reflects the company's commitment to being a trusted partner in supporting sustainability transformation across industries. Through its presence as an exhibitor, active engagement in international discussions, and thought leadership demonstrated by Romain Pradier's presentation, Peterson Solutions Indonesia aims to strengthen collaboration with stakeholders in building more resilient, transparent, and sustainable supply chains that create lasting value for businesses, communities, and the environment. About Peterson Solutions Indonesia Peterson Solutions Indonesia is a sustainability consulting company that supports organisations in implementing Environmental, Social, and Governance (ESG) strategies, sustainable supply chain management, decarbonisation, certification, risk management, and other strategic solutions that help businesses achieve responsible and sustainable growth.

Based on Minister of Law Regulation No. 49 of 2025 | Deadline : 30 June 2026 Indonesia has taken a significant step in tightening corporate compliance. Through the Ministry of Law, the Government has issued Minister of Law Regulation (Permenkum) No. 49 of 2025, which came into effect on 17 December 2025. This regulation replaces Minister of Law Regulation No. 21 of 2021 and introduces fundamental changes to the annual reporting obligations of all Limited Liability Companies (PT) and Foreign Investment Limited Liability Companies (PT PMA) operating in Indonesia. For business operators and foreign investors, this represents a systemic change with a direct impact on the continuity of company operations. 1. What Is an Annual Report? An Annual Report is an official document that must be prepared by the Board of Directors of every limited liability company, containing a summary of performance, financial condition, and management’s accountability for the company’s operations during one financial year. Key Components of the Annual Report: • Audited Financial Statements (Balance Sheet, Profit and Loss Statement, Cash Flow Statement) • Report by the Board of Directors on the running of the company • Report by the Board of Commissioners on the oversight of management • Disclosure of Beneficial Owner information • Business plans and future projections 2. Latest Update from the Indonesian Government The Government of Indonesia officially enacted Permenkum No. 49 of 2025 on 17 December 2025. This regulation revokes and replaces Permenkum 21/2021 Annual Reporting Is Now Mandatory in Digital Form The most crucial change is that the Annual Report is no longer sufficient to be kept internally. Every PT and PT PMA must now upload their annual report to the Government’s SABH (Legal Entity Administration System) or AHU Online system. This applies without exception, including for companies that have not made any changes during the financial year. 3. Comparison of Old Rules vs New Rules Aspect Before (Permenkum 21/2021) After (Permenkum 49/2025) Annual Report Not required to be reported to the system MUST be uploaded to SABH/AHU Online Annual General Meeting of Shareholders (RUPS) Internal record sufficient Must be notarised and reported Beneficial Owner Voluntary Mandatory disclosure, with a dedicated document Sanctions No automatic block Automatic SABH access block Corporate changes Single registration pathway Two pathways: Approval & Notification 4. Timeline and Milestones Peterson Solutions Indonesia, as an experienced consultant in analysis and report preparation, is ready to support your company end-to-end in completing the analysis and report in line with the agreed timeline. With the combination of Peterson Solutions Indonesia’s technical expertise and active collaboration with the client’s team, this process is designed to be efficient, transparent, and to produce a high-quality, timely report ensuring your company receives accurate analysis that can be implemented immediately. 5. Consequences of Late or Non-Reporting Sanctions for non-compliance under Permenkum 49/2025 are immediate, automatic, and have a significant operational impact. This is not merely an administrative fine — it is a freeze on the company’s ability to operate legally. SABH/AHU Online Access Block The most critical consequence is the automatic blocking of access to the SABH system. When SABH access is blocked, the company will be unable to carry out: • Amendments to the Articles of Association (name, domicile, capital, etc.) • Changes to or additions of Directors and Commissioners • Changes to the shareholder structure • Company restructuring processes • Filing for company dissolution • All other corporate changes In other words, your company becomes legally frozen. You cannot make any corporate decisions until compliance is restored. Ready to start a timely, accurate, and professional analysis and annual report for your company? Peterson Solutions Indonesia is ready to be your partner please schedule a consultation session with our team of experts! 📞 Telp: +62 21 2270 8913 📧 Email: enurhadi@onepeterson.com / marketing-indonesia@onepeterson.com🌐 Web: petersonindonesia.com Let’s make this a high-quality annual report before the 30 June deadline. Discuss your company’s needs with Peterson Solutions Indonesia today! Legal References Minister of Law Regulation No. 49 of 2025 | Law No. 40 of 2007 on Limited Liability Companies | BKPM Regulation No. 5 of 2025 | Government Regulation No. 5 of 2021 (OSS-RBA)

Book a 1:1 with our experts Questions we help you answer 1 | Where are crops thriving - and where are they not? Field-level monitoring reveals what aggregated data never could. 2 | What's changing in the surrounding environment? Track deforestation, land use change, and ecological shifts in near real time. 33 | How can geographic data actually inform decisions? Spatial analytics and GIS intelligence translate raw data into strategic clarity. The Problem - EUDR Compliance EUDR demands plot-level proof. A supplier list is not enough. The EU Deforestation Regulation requires verified geolocation data, time-series satellite evidence and audit-ready documentation for every sourcing point — across every tier. Most companies still have significant gaps, and the clock is running. Supplier list Company names only Tier 1 focus only Static records Limited audit value → What EUDR requires ✓ Verified geolocations ✓ Tier 1, 2 & 3 visibility ✓ Satellite time-series evidence ✓ Audit-ready documentation Our Solution - EUDR Compliance Services End-to-end, hands-on support backed by 100+ years of supply chain operations and trusted local presence at origin. Far beyond technology. 01 - Due Diligence System Development Full compliance system from scratch: risk assessment, plot-level mapping, traceability architecture and auditable workflows. For operators & traders starting from zero. 02 - Supplier Readiness Program Direct supplier engagement: readiness evaluation, gap closure, training and on-the-ground capacity building. For companies struggling with supplier engagement. 03 - Vessel Verification & TRACES Vessel verification and TRACES declarations — including acting as your authorized representative. For companies needing operational support. Academy Training for your teams — self-paced, hybrid or in-house. Autonomy, not dependency. PTech Platform Dashboards, real-time reporting and documentation management. Total control when it counts. Contact an Expert Our GeoServices Tools GeoServices turns unknown supplier locations into verified, audit-ready intelligence — combining satellite data, spatial analysis and field expertise. Deforestation & EUDR Analysis Satellite imagery to assess deforestation risk and EUDR eligibility. GeoDatabase Creation Verified geospatial databases of farms, suppliers and sourcing areas. Crop & Land Monitoring Track crop development, land-use changes and harvest indicators over time. Spatial Risk Analysis Cross-reference suppliers with environmental, social and regulatory risk layers. Mycotoxin Risk Predict mycotoxin risk using agricultural, climate and geospatial data. Suitability Analysis Identify land suitability for sourcing, expansion or reforestation programs. From supplier list to verified, audit-ready evidence. If you're curious what your supply chain might reveal when mapped this way, we'd be glad to explore it with you. Explore our services

With new global expectations and increasingly stringent sustainability requirements on the horizon, Indonesia’s palm oil industry is entering a pivotal phase of transformation. On 4–5 May 2026, the Roundtable on Sustainable Palm Oil (RSPO), through its Indonesia Secretariat, convened a Standard Harmonisation Session in Jakarta. The event brought together a diverse range of stakeholders - including plantation companies, independent smallholders, auditors, certification bodies, consultants, and NGOs with one shared objective: preparing for the implementation of the updated RSPO Principles & Criteria (P&C) 2024 and Independent Smallholder (ISH) Standard 2024, which will officially take effect on 1 June 2026. What Are the Updated RSPO Principles & Criteria 2024 ? In simple terms, both are global sustainability standards developed by the RSPO to ensure palm oil is produced responsibly - environmentally, socially, and economically. 1. RSPO Principles & Criteria (P&C) 2024 The RSPO Principles & Criteria (P&C) 2024 serves as the primary certification standard for companies, including plantations, mills, and corporate groups. It establishes mandatory requirements for sustainable palm oil production across global supply chains. 🔑 Key Areas Covered Environmental Protection (Planet) No deforestation No peatland conversion Biodiversity protection Social Responsibility (People) Workers’ rights Community rights FPIC (Free, Prior and Informed Consent) Human Rights Due Diligence (HRDD) Business Ethics & Governance (Prosperity) Transparency Traceability Legal compliance The overarching goal is to ensure palm oil production balances People, Planet, and Prosperity in a measurable, transparent, and auditable way. 2. RSPO Independent Smallholder (ISH) Standard 2024 The RSPO Independent Smallholder (ISH) Standard 2024 is specifically designed for independent smallholder farmers, who typically manage smaller land areas and operate independently. The standard provides a more simplified and accessible pathway to certification while maintaining the same sustainability ambitions. 🔑 Key Areas Covered Good Agricultural Practices (GAP) Environmental protection adapted to small-scale operations Social safeguards, including land rights, FPIC, and fair treatment Group certification systems (e.g. cooperatives and Internal Control Systems/ICS) Importantly, the standard recognises that independent smallholders face different capacities and operational challenges. As such, implementation follows a more practical and step-by-step approach. What Were the Key RSPO Updates Highlighted? 🌱 Stronger Environmental Commitments A major focus during the first day of the session was the Planet Pillar, where the revised standards introduced stronger environmental safeguards. Key updates include: The HCV - HCS approach is now more clearly defined and fully integrated, covering both above- and below-ground carbon stock. Sustainability requirements now explicitly extend to independent smallholders, reinforcing inclusivity across the supply chain. New indicators on water use and abstraction have been introduced to address future resource risks. The strict prohibition of deforestation and peatland conversion remains unchanged. Environmental compliance must now be reported through PRISMA, RSPO’s digital traceability system, enhancing transparency across global supply chains. 👥 Raising the Bar on Human Rights and Labour Standards Equally significant are the updates introduced under the People Pillar, reflecting a stronger emphasis on social responsibility and worker protection. Key developments include: Human Rights Due Diligence (HRDD) is now mandatory, aligned with international frameworks such as the UN Guiding Principles and OECD guidance. FPIC (Free, Prior and Informed Consent) remains a cornerstone requirement, supported by stronger implementation measures and annual reviews. Core operational roles, including harvesting, must now be undertaken by permanent employees in accordance with national labour regulations. Enhanced protection for women workers, including safeguards for pregnant employees and fair treatment during role reassignment. Clearer requirements surrounding recruitment practices and working hours, including limitations on consecutive working days and employer responsibility for third-party recruitment fees. 🤝 A Unified Step Towards Sustainable Transformation This harmonisation session reflects Indonesia’s ongoing commitment to aligning with evolving global sustainability expectations. With the planned introduction of INANI (Interpretasi Nasional Indonesia) by the end of May 2026, RSPO members across Indonesia will have access to a nationally contextualised framework to support implementation and compliance. 💬 Why This Matters For businesses, smallholders, and stakeholders across the palm oil value chain, these updates represent more than regulatory compliance. They signal a broader shift towards a more accountable, transparent, and future-ready palm oil industry - one that is increasingly aligned with global sustainability expectations while strengthening long-term resilience and market credibility. Reference: This article refers to official information and event details published by the Roundtable on Sustainable Palm Oil (RSPO) through its News & Events publications and related communications.

Dengan meningkatnya ekspektasi global dan persyaratan keberlanjutan yang semakin ketat di masa mendatang, industri kelapa sawit Indonesia tengah memasuki fase transisi yang krusial. Pada tanggal 4–5 Mei 2026, Roundtable on Sustainable Palm Oil (RSPO) melalui Sekretariat Indonesia menyelenggarakan Standard Harmonisation Session di Jakarta. Kegiatan ini mempertemukan berbagai pemangku kepentingan utama, mulai dari perusahaan perkebunan dan petani swadaya independen, auditor, lembaga sertifikasi, konsultan, hingga NGO, dengan satu tujuan bersama: mempersiapkan implementasi pembaruan RSPO Principles & Criteria (P&C) 2024 dan Independent Smallholder (ISH) Standard 2024, yang akan mulai berlaku efektif pada 1 Jun 2026. Apa itu RSPO Principles & Criteria 2024 dan RSPO Independent Smallholder Standard 2024? Secara sederhana, keduanya merupakan standar keberlanjutan global yang dikembangkan oleh RSPO untuk memastikan minyak sawit diproduksi secara bertanggung jawab dari aspek lingkungan, sosial, dan ekonomi. 1. RSPO Principles & Criteria (P&C) 2024 Standar ini merupakan skema sertifikasi utama bagi perusahaan (perkebunan, pabrik kelapa sawit, dan kelompok korporasi). Di dalamnya terdapat persyaratan wajib mengenai bagaimana minyak sawit harus diproduksi secara berkelanjutan di seluruh dunia. 🔑 Ruang lingkup utama: Perlindungan Lingkungan (Planet) Tidak ada deforestasi (no deforestation) Larangan konversi lahan gambut (no peat conversion) Perlindungan keanekaragaman hayati Tanggung Jawab Sosial (People) Hak-hak pekerja Hak masyarakat FPIC (Free, Prior and Informed Consent) Uji tuntas hak asasi manusia (human rights due diligence) Etika Bisnis & Tata Kelola (Prosperity) Transparansi Ketertelusuran (traceability) Kepatuhan hukum Tujuan utamanya adalah memastikan produksi minyak sawit mampu menyeimbangkan aspek People, Planet, dan Prosperity secara terukur dan dapat diaudit. 2. RSPO Independent Smallholder (ISH) Standard 2024 Standar ini dirancang khusus untuk petani swadaya independen, yang umumnya mengelola lahan skala kecil dan beroperasi secara mandiri. Standar ini menyediakan jalur sertifikasi yang lebih sederhana dan mudah diakses, tanpa mengurangi standar keberlanjutan yang berlaku. 🔑 Ruang lingkup utama: Praktik pertanian yang baik (Good Agricultural Practices / GAP) Perlindungan lingkungan yang disesuaikan dengan operasional skala kecil Perlindungan sosial (hak atas tanah, FPIC, perlakuan yang adil) Sistem sertifikasi kelompok (misalnya koperasi dan Internal Control System / ICS) Standar ini mengakui bahwa petani kecil memiliki kapasitas dan tantangan yang berbeda, sehingga pendekatan implementasinya dibuat lebih praktis dan bertahap. Apa saja pembaruan utama RSPO yang disoroti? 1. Penguatan Komitmen Lingkungan Salah satu fokus utama pada hari pertama adalah Pilar Planet, di mana standar terbaru memperkenalkan pengamanan lingkungan yang lebih kuat: Pendekatan HCV–HCS kini didefinisikan lebih jelas dan terintegrasi sepenuhnya, mencakup stok karbon di atas maupun di bawah permukaan tanah. Persyaratan kini secara eksplisit juga berlaku bagi petani swadaya independen, memperkuat prinsip inklusivitas dalam keberlanjutan. Indikator baru terkait penggunaan dan pengambilan air (water use and abstraction) diperkenalkan untuk mengantisipasi risiko sumber daya di masa depan. Larangan ketat terhadap deforestasi dan konversi lahan gambut tetap dipertahankan tanpa perubahan. Kepatuhan lingkungan kini wajib dilaporkan melalui PRISMA, sistem digital ketertelusuran terbaru RSPO yang meningkatkan transparansi dalam rantai pasok global. 2. Peningkatan Standar Hak Asasi Manusia dan Ketenagakerjaan Pembaruan pada Pilar People juga menjadi perhatian penting, dengan penekanan yang lebih kuat pada tanggung jawab sosial: Human Rights Due Diligence (HRDD) kini menjadi persyaratan wajib, sejalan dengan kerangka internasional seperti UN Guiding Principles dan pedoman OECD. FPIC (Free, Prior and Informed Consent) tetap menjadi prinsip utama, dengan penguatan implementasi serta kewajiban evaluasi tahunan. Posisi kerja inti, termasuk kegiatan panen, kini harus dilakukan oleh karyawan tetap, sesuai regulasi ketenagakerjaan nasional. Perlindungan bagi pekerja perempuan diperkuat, termasuk perlindungan bagi pekerja hamil dan perlakuan yang adil saat penyesuaian pekerjaan. Aturan yang lebih jelas terkait praktik rekrutmen dan jam kerja diterapkan, termasuk pembatasan hari kerja berturut-turut serta tanggung jawab perusahaan atas biaya perekrutan pihak ketiga. 🤝 Langkah Bersama Menuju Transformasi Berkelanjutan Sesi harmonisasi ini mencerminkan komitmen berkelanjutan Indonesia dalam menyelaraskan diri dengan perkembangan standar keberlanjutan global. Dengan diperkenalkannya INANI (Interpretasi Nasional Indonesia) pada akhir Mei 2026, anggota RSPO di seluruh Indonesia akan memiliki kerangka implementasi yang lebih kontekstual sesuai kondisi nasional. 💬 Mengapa Hal Ini Penting? Bagi perusahaan, petani swadaya, serta seluruh pemangku kepentingan dalam rantai nilai, pembaruan ini bukan sekadar kewajiban kepatuhan (compliance). Lebih dari itu, perubahan ini mencerminkan pergeseran menuju industri minyak sawit yang lebih akuntabel, transparan, dan siap menghadapi tantangan masa depan. Referensi: Informasi dan detail acara merujuk pada publikasi resmi RSPO melalui bagian berita dan kegiatan RSPO News & Events

Indonesia’s Standar Pengungkapan Keberlanjutan (SPK)  will come into force on 1 January 2027 , introducing a mandatory, investor-focused sustainability disclosure framework aligned with global standards. This guide sets out what organisations need to understand and act on ahead of the deadline. What is SPK and Why It Matters On 1 July 2025 , Indonesia formally ratified its first national sustainability disclosure standards through the Indonesian Sustainability Standards Board (DSK IAI), in coordination with Bank Indonesia, the Ministry of Finance, and the Financial Services Authority (OJK). SPK represents a fundamental shift  in sustainability reporting: From impact-focused reporting to financial risk and opportunity disclosure From voluntary narratives to mandatory, structured reporting From standalone sustainability reports to integrated financial disclosures Unlike OJK Regulation No. 51/2017 (POJK 51), which emphasises a company’s impact on society and the environment, SPK requires organisations to disclose how sustainability-related risks, such as climate change and resource scarcity, affect: Financial performance Business strategy Long-term enterprise value This brings Indonesia into alignment with leading jurisdictions, including the United Kingdom, Australia, and Singapore. Understanding PSPK 1 and PSPK 2 SPK comprises two interdependent standards that must be applied together: PSPK 1 – General Requirements for Sustainability Disclosure Covers all material sustainability-related risks and opportunities Establishes disclosure principles and reporting structure Applies across environmental, social, and governance (ESG) topics Based on IFRS S1, with local adaptations PSPK 2 – Climate-Related Disclosures Focuses specifically on climate-related risks and opportunities Requires identification of physical and transition risks Mandates disclosure of GHG emissions (Scopes 1, 2, and 3) Requires climate scenario analysis  (e.g. 1.5°C and 2°C pathways) Based on IFRS S2 and aligned with TCFD recommendations Important note:  While PSPK 2 mandates climate-related disclosures, broader ESG disclosures under PSPK 1 are currently encouraged but not yet fully mandatory. The Four Core Disclosure Areas SPK adopts the ISSB and TCFD structure, requiring disclosures across four core pillars: 1. Governance Oversight of sustainability-related risks at the board level Roles, responsibilities, and decision-making processes 2. Strategy Impact of sustainability risks and opportunities on the business model Short-, medium-, and long-term implications 3. Risk Management Processes for identifying, assessing, and managing risks Integration with enterprise risk management (ERM) 4. Metrics and Targets Key performance indicators (KPIs) Emissions data (Scopes 1–3) Targets and progress monitoring Key distinction:  Sustainability disclosures are no longer separate reports—they must be integrated within financial reporting frameworks . Who Will Be Required to Comply The final scope will be confirmed by OJK; however, the SPK Roadmap indicates that the mandatory application will focus on: IDX-listed companies Financial institutions (banks, insurers, and capital market participants) Other publicly accountable entities currently subject to POJK 51 Early adoption is permitted and strongly encouraged , particularly for organisations with: International investors Global supply chain exposure EU regulatory obligations (e.g. CSRD or CSDDD) Regulatory Timeline Year Milestone December 2024 SPK Roadmap published 1 July 2025 PSPK 1 and PSPK 2 ratified 11 August 2025 National launch 2026 Preparation period and voluntary adoption 1 January 2027 Mandatory implementation Early 2028 First SPK-aligned reports published How to Prepare for SPK 2027 Organisations that treat SPK as a strategic transformation , rather than a compliance exercise, will be better positioned to strengthen governance, enhance risk management, and communicate value to investors. 1. Conduct a Gap Analysis Assess current reporting practices (e.g. POJK 51, GRI) against PSPK 1 and PSPK 2 requirements. 2. Perform an ISSB-Aligned Materiality Assessment Identify sustainability risks and opportunities that could affect: Financial position Cash flows Business prospects 3. Develop a GHG Emissions Inventory Establish systems to measure: Scope 1, 2, and 3 emissions (using recognised methodologies such as the GHG Protocol) 4. Strengthen Governance Structures Ensure effective board oversight through: Clear accountability Appropriate expertise Defined governance processes 5. Establish Data Systems and Internal Controls Reliable, auditable sustainability data is essential for: Accurate disclosures Future assurance readiness 6. Conduct Climate Scenario Analysis Evaluate organisational resilience under: 1.5°C scenarios Higher warming pathways 7. Integrate Sustainability with Financial Reporting Align sustainability disclosures with: Financial statements Risk disclosures Strategic planning processes 8. Consider Early Adoption (2026) Early adopters benefit from: Enhanced investor confidence A smoother transition First-mover advantage 9. Prepare for Independent Assurance While not yet mandatory, external assurance is increasingly expected by regulators and the market. SPK is not merely a reporting requirement; it represents a fundamental shift in how organisations define, measure, and communicate value . Delayed preparation may lead to: Compressed implementation timelines Weak data quality Increased regulatory scrutiny Early action, by contrast, enables organisations to: Build investor trust Improve access to capital Strengthen positioning within global markets. References   (August 12, 2025). Release of the Sustainability Disclosure Standards. Sustainable Finance OJK. https://keuanganberkelanjutan.ojk.go.id/keuanganberkelanjutan/en/newsmedia/detailnews/3842/peluncuran-standar-pengungkapan-keberlanjutan-iai    (August 7, 2025). Indonesia Launches Sustainability Disclosure Standards based on IFRS S1 and S2. Indonesian Institute of Accountants. https://web.iaiglobal.or.id/Berita-IAI/detail/indonesia_launches_sustainability_disclosure_standards_based_on_ifrs_s1_and_s2   (n.d.). ROADMAP OF INDONESIAN SUSTAINABILITY DISCLOSURE STANDARDS. https://web.iaiglobal.or.id/assets/files/file_sak/Roadmap%20SPK_English.pdf   (August 12, 2025). Release of the Sustainability Disclosure Standards. OJK. https://keuanganberkelanjutan.ojk.go.id/keuanganberkelanjutan/en/newsmedia/detailnews/3842/peluncuran-standar-pengungkapan-keberlanjutan-iai

For many years, plastic has been an inseparable part of business activities and everyday life. From food and beverage packaging to the automotive industry, almost every sector relies on plastic. The reasons are simple: it is inexpensive, flexible, and efficient. However, the question is now shifting. What happens when the material that has long been the most economical starts becoming increasingly expensive? Recently, plastic is no longer viewed as just another raw material. It has become a recurring topic in boardrooms, public policy agendas, and everyday discussions, particularly among business players such as UMKM. This is not driven by new innovation, but rather by rising prices that are beginning to put pressure on many industries. Behind this trend are multiple interconnected factors. Geopolitical tensions in energy-producing regions, post-pandemic supply chain disruptions, and fluctuations in global oil prices all have a direct impact on the petrochemical industry. As plastic is derived from oil and gas, the effects are inevitably felt across the sector. At the same time, environmental concerns can no longer be overlooked. Ocean pollution, the waste crisis, and emission reduction targets are pushing many countries to tighten regulations. This means companies are facing not only rising raw material costs but also additional expenses related to waste management obligations, recycling requirements, and increasing demands for transparency. In other words, today’s plastic prices no longer reflect production costs alone—they are beginning to incorporate environmental costs that were previously overlooked. This signals a significant shift, where economic and environmental factors are becoming increasingly interconnected. Time to Reduce Plastic and Transition to Sustainable Materials Why Act Now? Rising plastic prices highlight an increasingly unstable dependency Fossil-based plastics are highly vulnerable to geopolitics and energy price fluctuations Environmental costs have not been fully reflected in pricing Global regulatory pressure is intensifying   The Direction of Change: Emerging Material Alternatives 1.      Recycled Plastics (rPET, rPP) Recycled plastics such as rPET (recycled polyethylene terephthalate) and rPP (recycled polypropylene) are among the fastest to be adopted, as they remain within the same “family” as conventional plastics. These materials are derived from collected plastic waste, reprocessed, and reused as raw materials. Their main advantage lies in reducing dependency on virgin plastics while lowering the carbon footprint of production. However, challenges remain in terms of quality and availability. Not all plastic waste can be recycled to the same standard, and collection and sorting infrastructure is still limited in many countries. As a result, recycled plastics are often more expensive than virgin plastics. 2.      Bioplastics (Plant-Based) Bioplastics are made from renewable resources such as corn, sugarcane, or cassava. Unlike conventional fossil-based plastics, they are designed to reduce reliance on petroleum. Some types of bioplastics are also biodegradable or compostable, allowing them to break down more quickly under certain conditions, making them an attractive alternative from an environmental perspective. That said, bioplastics are not without criticism. Production costs remain relatively high, and in some cases, they compete with food resources due to their reliance on agricultural inputs. Additionally, not all bioplastics decompose naturally—some require specialised industrial facilities. 3.      Natural Fibre-Based Packaging (Paper, Bamboo and relevant materials) Materials such as paper, cardboard, and bamboo are increasingly used as substitutes for plastic, particularly in single-use packaging. Their primary advantage is that they are derived from renewable sources and are generally more easily biodegradable. They are also often more readily accepted by consumers, who perceive them as more environmentally friendly. However, trade-offs must be considered. Paper production, for instance, requires significant amounts of water and energy and may contribute to deforestation if not managed sustainably. In terms of performance, these materials are not always as durable or flexible as plastic, particularly for products requiring high strength or moisture resistance. 4.      Reusable Systems (Refill / Return Models) Unlike material-based approaches, reusable systems focus on reducing the need for packaging production altogether. This concept promotes the use of containers that can be reused multiple times, either through refill systems or return schemes. This model is considered one of the most effective solutions within the circular economy  framework, as it directly reduces waste volume. Over time, it can also create cost efficiencies when implemented at scale. However, the main challenge lies in behavioural change. Reusable systems require active consumer participation, as well as supporting infrastructure such as return logistics and proper sanitation processes.   Strategic Opportunities Reducing risks associated with raw material dependency Enhancing brand value and consumer trust Achieving long-term efficiency through circular systems Gaining access to global markets with stricter ESG requirements   Ultimately, rising plastic prices are not merely a cost issue they are a signal of a broader shift. Industries that can adapt to more stable, sustainable packaging systems will be better positioned to navigate future global uncertainties and build resilience. The increase in plastic prices, driven by geopolitical dynamics, highlights an increasingly clear reality: dependence on fossil-based materials is not only unsustainable but also unstable. When global supply chains are disrupted, the impact quickly cascades into production costs and consumer prices, exposing the fragility of a system once considered efficient. The transition towards approaches such as the circular economy is no longer just a strategic option, but a necessity for achieving long-term stability. The adoption of more sustainable packaging, whether through recycled materials, natural alternatives, or reusable systems, represents a critical step in reducing risk while addressing growing environmental pressures. Reference: Hamapu, A. (April 7, 2026). Harga Plastik di Batam Naik hingga 30 Persen, Disperindag: Dampak Global. DetikSumut. https://www.detik.com/sumut/berita/d-8432780/harga-plastik-di-batam-naik-hingga-30-persen-disperindag-dampak-global (August 15, 2024). Pemerintah Siapkan Kebijakan Ekonomi Sirkular untuk Industri Plastik. ANTARA News. https://www.antaranews.com/berita/4263199/pemerintah-siapkan-kebijakan-ekonomi-sirkular-untuk-industri-plastik (April 10, 2026). Harga Plastik Naik, Industri Didorong Bangun Ketahanan di Tengah Tekanan Global. Warta Ekonomi. https://id.investing.com/news/economy-news/harga-plastik-naik-industri-didorong-bangun-ketahanan-di-tengah-tekanan-global-2947794

During the 2026 Eid al-Fitr celebrations, Jakarta a city long associated with severe air pollution recorded a remarkable improvement in air quality. For a brief period, Jakarta even surpassed global cities such as Seoul and London in terms of air quality. This event is not merely a fleeting piece of good news, but a significant reflection for sustainability discourse, particularly in the context of urban living and carbon emissions management. Jakarta Air Quality Data During Eid al-Fitr 2026 Throughout the Eid al-Fitr holiday, Jakarta’s Air Quality Index (AQI) hovered around 50, classified as ‘good’—an achievement rarely seen under normal circumstances. In comparison: Seoul recorded a higher AQI than Jakarta London also posted figures above Jakarta In other words, Jakarta briefly transformed into one of the world’s cleanest major cities. Factors Behind Jakarta’s Improved Air Quality Reduced Vehicle Volume Millions of residents left the city to return to their hometowns, leaving streets deserted. Congestion and vehicular emissions dropped dramatically. Road transport remains the main contributor to Jakarta’s air pollution. Slowed Industrial and Office Activities The extended holiday saw many industries and offices close temporarily. Emissions from these sectors fell significantly. Logistics activity also slowed. Lower Energy Consumption With business activities reduced, electricity usage fell. Emissions from power generation also declined. There is a direct correlation between energy consumption and air quality. Direct Positive Impacts Observed by Residents The sky appeared bluer, and the air felt fresher. Visibility increased. Pollution exposure was noticeably reduced. Urban quality of life improved as pollution was curbed. Sustainability Insight: Jakarta as a Low-Emission City Experiment The Lebaran 2026 phenomenon served as a ‘natural laboratory’ for a sustainable city. Key takeaways include: Air pollution is reversible. Changes in human activity have immediate impact. Large cities have significant potential to transform towards environmental friendliness. Jakarta could genuinely become a low emission city with sustained effort. Comparison with Global Cities Although Seoul and London have more advanced transport systems and environmental regulations, air quality is still highly influenced by: Stable economic activities and daily mobility Geographical and weather factors Jakarta experienced an extreme drop in activity, which instantly improved air quality Post-Lebaran: Air Quality Deteriorates Again Unfortunately, the improvement proved temporary. Once residents returned: Vehicles again crowded the streets Industrial and office activity resumed Emissions increased, and Jakarta’s AQI returned to ‘unhealthy’ levels within days This confirms that Jakarta’s pollution problem is not unsolvable, but has yet to be managed consistently. Implications and Recommendations for Sustainability Strategy Government Strengthen public transport Enforce emission restrictions Provide incentives for electric vehicles Adopt sustainability-based urban planning Business Sector Implement ESG strategies Reduce operational carbon footprint Embrace hybrid working policies Society Reduce private vehicle use Increase environmental awareness Adopt sustainable lifestyles Conclusion Jakarta’s experience during Lebaran 2026 demonstrates that clean air is not an impossibility. However, without systemic changes and consistent policy, this achievement will remain seasonal and temporary. Is Jakarta ready to maintain better air quality in a sustainable manner? References Oswaldo, I. G. (11 March 2026). 143.9 Million People Predicted to Travel Home for Lebaran 2026, Majority Using Private Cars. Detik Finance. https://finance.detik Kencana, M. R. (14 March 2026). With Residents Away, Jakarta’s Electricity Consumption Drops by 2,000 MW During Lebaran 2026. Liputan6.com . https://www.liputan6.com Huda, L. (9 April 2025). After Lebaran Holiday, Jakarta’s Air Quality Unhealthy Today. Kompas.com . https://megapolitan.kompas.com/read/ (2024). World Air Quality Index (AQI) Ranking. IQAir. https://www.iqair