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Sustainable Downstream Industry Assessment (SIDIA) Indonesia

Posted on 04 May 2023
Author by Yayasan WWF Indonesia & Accenture Development Partnerships


Sustainable Downstream Industry Assessment (SIDIA) is a sustainable sourcing assessment tool for companies in the downstream sector. The downstream sector refers to companies that have direct links to everyday users and are consumer driven.[1] The Indonesian middle class has been a major driver of economic growth as the group’s consumption has grown by 12% annually since 2002 and now represents close to half of all household consumption in Indonesia.[2] Following policymaker’s decisions in setting environmental and sustainability goals based on United Nations’ Sustainable Development Goals (SDG), consumer preference has also shifted more towards products from companies that are conscious of protecting the environment.[3]

SIDIA targeted a variety of downstream industries in Indonesia, such as retailers, fast-moving consumer goods (FMCG), food and beverage (F&B), and hotels to assess the usage of palm oil, wood/timber and paper, seafood commodities, and plastic and energy in their products and/ or services, based on the Sustainable Sourcing Guidelines launched in 2020. By participating in this assessment, SIDIA aimed to encourage companies to implement and further improve their sustainable procurement practices. SIDIA is also expected to be a reference for downstream industry actors in their policy-making and formulation of steps to create a responsible and environmentally friendly industry.


The assessment was performed through four methods: approach companies, data collection through an extensive questionnaire filled out by companies, desk research using publicly available data published on the company’s owned media, and verification sessions with companies to align on the data submitted as proof of sustainable procurement practices. The assessment was based on the pillar dimensions of commitment (corporate strategy on sustainability, vision and mission, and stakeholder involvement), performance (effort in implementing policies and efforts in identifying sources of materials), and transparency (reporting, publishing, and efforts on ensuring that the practices are known to the public); against the category (activity/ commodity) dimensions, which consist of general initiatives, palm oil, wood and paper, seafood, plastic, and energy.

The result of the assessment and discussion placed the adoption level of the companies using a scoring system. The sample sectors are hotel, food & beverage, fast-moving consumer goods, and retail. Companies for each sector were selected through non-probability sampling based on the following criteria:

[1] 1 country/indonesia/overview#1

[2] publication/aspiring-indonesia-expanding-the-middle-class

[3] publication/aspiring-indonesia-expanding-the-middle-class

From the list of companies selected to be assessed, participating companies are companies that confirmed to be assessed and go through a verification process or confirmed to only use the deskresearch results. The non-participating companies are companies that did not respond after several contact attempts or have stated not to participate.


In the General Initiatives category, majority of participating companies were able to meet all the pillars required – commitment, performance, and transparency. Although not all companies were able to meet all 13 criteria, 11 of the 21 assessed companies met at least 7 criteria. In the plastic category, majority of participating companies and several non-participating companies provided their commitment to reduce plastic use and has a policy to manage the use of plastic. This can be an alignment to a policy rolled out by Indonesia’s national government (PerMen LHK no 75, 2019) to end the plastic waste problem, which also aims to minimize marine plastic waste by 70% by 2025 and be entirely rid of plastic pollution by 2040. For other categories, implementing reduction of energy uses and sourcing sustainable wood/paper were next in line met by companies, followed by sourcing of sustainable palm oil and seafood. Although the results cannot be aggregated due to the different industries, the adoption of each category seems to be drawn from the combination of existing government policies and the companies’ own initiatives. Public documents or information from the company’s owned media were largely not available for most non-participating companies, which resulted in low scoring in all the pillars and categories. The overall assessment results showed that the adoption of sustainable practices varies amongst companies. Only some companies responded to the survey and preferred to use the desk research results as the basis of the verification process. The minimal response may be caused due to the ongoing pandemic, where majority of the companies were still in the recovery stage to focus on workforce health and safety and maintain financial stability. With the increasing awareness on sustainable sourcing through new regulations and consumer demands, SIDIA team encourages companies to use this assessment to benchmark themselves and self-identify areas for growth and opportunities. The SIDIA team will also review on how to engage further with participating companies for improvements and connect with non-participating companies to participate in the sustainable sourcing efforts in Indonesia.

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