Sustainable Business Models in Jakarta: Case Studies
DEAR JAKARTA, 2050SUSTAINABLE PROGRESS
Kimora Marjorie Sutisna
10/19/20253 min read
Jakarta, currently still Indonesia’s capital city, is the most populous region in Indonesia. Home to over 10M people, it continues to be one of the fastest-growing megacities in Southeast Asia. This also makes it prone to major sustainability challenges. From rapid urbanization, severe traffic congestion, poor waste management, pollution, frequent flooding and extremely high carbon emissions, Jakarta is on its way to becoming the world’s most environmentally vulnerable city. These issues arise from multiple reasons, including high population densities, rapid industrialization, and a lack of environmental regulations. However, especially in recent times, Jakarta has had a huge role in both being a contributor to environmental problems and testing ground for sustainable solutions. The government has attempted to maintain sustainable practices through policies and infrastructures, however corruption has been a main factor in why this hasn’t succeeded. As government solutions struggle to keep pace, businesses have stepped up with innovative and sustainable models that may help with solving Jakarta’s environmental crisis.
Traditionally, businesses prioritized profit. But sustainable business models emphasize the Triple Bottom Line: people, planet and profit. People places a focus on the people, providing them with fair labor, community empowerment, and an improvement in the quality of life. Planet places a focus on reducing carbon footprint, managing waste, and conserving resources. Profit places a focus on ensuring that there is financial validity in order for this model to stay sustainable long-term. In Jakarta, this model has already been implemented by multiple startups, that aim to both generate income and solve environmental issues. The drive towards business sustainability is not just from one’s own will, often times it derives from consumer demands, investor demands, or competitive advantages. The triple bottom line framework is necessary for the socio-economic and environmental situations in Jakarta right now.
Gojek, a well known delivery, food hailing, and digital service platform is one business who has implemented sustainable models in their business. Their model is underpinned by 3 key targets: zero emissions, zero waste, and zero friction. This model focuses on inclusivity, socioeconomic growth, and value chain decarbonization to achieve net-zero emissions, reduce waste pollution, and drive economic growth within its ecosystem.
Based off their annual report, the company is on track with their goals of sustainability. The combined Group’s total Scope 1, 2, and 3 Greenhouse Gas (GHG) emissions in 2021 were 817,248 tCO2e, with the largest proportion coming from use of sold products (part of Scope 3), due to the large fleet of their drivers utilizing electric vehicles. In 2021, GoTo also completed its first ecosystem-wide waste accounting process, which covered all warehouses, offices and on-demand services. In total, GoTo's entire ecosystem generates approximately 335,000 metric tons of waste a year, of which less than 1% is from GoTo's direct operations, and the remainder indirectly from Gojek and Tokopedia's ecosystems. The report includes data about the gender and age diversity of its workforce as well as its Governance Board. As for the 2.6+ million drivers and 15+ million merchants in the ecosystem, GoTo continues to contribute about 2% of Indonesia’s GDP; support micro, small and medium enterprises (MSME) in training, business growth, entrepreneurship and service to marginalized communities; and promote financial inclusion and access to the digital economy.
Another business in Jakarta is Naked Inc., established in 2019 by Kiana Lee and Vallen Hertansia as one of Jakarta’s top zero-waste or bulk health stores, located in Como Park, Jl. Kemang Timur, South Jakarta. Its mission: reducing plastic waste, changing consumption habits by encouraging customers to only buy what they need, and provide for those looking for eco-friendly daily necessities. The actions they are taking is tremendously beneficial for Indonesia’s current environmental state.
So how does Naked Inc. apply sustainability in their store? The business operates on a ‘sccop-and-weigh’ model. The concept is fairly simple: First, customers either need to bring their own containers or buy the ones available in store. Paper packaging are around Rp 3.000 each, and depending on the size, their glass packaging costs around Rp 10.000-Rp 45.000 each. It is highly encouraged for customers to bring their own reusable containers, which is weighed before shopping. Afterwards, customers can walk around the store and find any products they need, which will be weighed again later to measure payment. The shop also has an exclusively sustainably-forward product range, from bulk groceries like rice or pasta, to eco-conscious personal-care items like castile soaps and shampoos, to other homemade or locally sourced items like pet treats. The prices of this shop can come up to be pretty expensive, but the sustainable aspects of their business makes these prices justifiable. The store is recognized by Zero Waste Indonesia as one of the many places that can help reduce and recycle waste, and is opened everyday from 8AM-8PM. Their actions for the environment helps in promoting a zero-waste lifestyle, reducing plastic packaging, supporting sustainable and locally-sourced products, and improving logistical efficiency to lower carbon emissions
As seen above, there is a definite sustainable change happening in Jakarta, and the biggest changemakers of all is the people. Whether they’re large businesses taking up a large and wide environmentally friendly practice or even just two people who decided to make a difference, the work of the people are the most effective in saving Indonesia’s environmental status.
Sources
https://www.nowjakarta.co.id/jakarta-s-eco-friendly-bulk-stores/
https://mediaindonesia.com/humaniora/288632/edukasi-lingkungan-di-toko-bebas-kemasan?