Danone Indonesia Strengthens The Position As Pioneer Of The Private Sector Of Government Partners In Managing Sustainable Water

JAKARTA - Emphasizing his commitment to preserving water resources, Danone also supports and participates in the 10th World Water Forum held in Bali, Indonesia. Carrying the theme Water for Shared Prosperity', the event which was held under the auspices of the Ministry of Public Works and Public Housing (PUPR) took place in Bali on May 18-25, 2024. The 10th World Water Forum focuses on discussing four things, namely water conservation, clean water and sanitation, food and energy security, as well as mitigation of natural disasters.

In addition to affirming its commitment to supporting the preservation of water resources, Danone's involvement in this international event is also a form of support for the government's efforts to deal with water problems in Indonesia.

The sustainability of water resources is a challenge for governments and people around the world, including Indonesia. Nearly 703 million people worldwide do not have access to water. Furthermore, the United Nations (UN) estimates that by 2025, 1.8 billion people will live in an absolute water shortage.

Another impact, according to the World Bank, is that water scarcity can reduce global gross domestic product (GDP) by 2.5 percent by 2045 due to water-related losses in the agricultural, health, revenue and prosperity sectors.

On one occasion opening the High Level Panel event at the World Water Forum 2024, Sandiaga Uno, Minister of Tourism and Creative Economy of the Republic of Indonesia, said that in his opening speech, President Joko Widodo stated that 72 percent of the earth's surface covered with water, only 1 percent of which can be accessed and used as drinking water and sanitation needs.

"Therefore, water must be managed properly because each drop is very valuable. We, the government, cannot work alone and requires support from industry players. Through the spirit of innovation, capital skills and technological adaptation, we encourage industry players to be involved in water management efforts to realize the achievement of Sustainable Goals 6," said Sandiaga. Danone Indonesia admits that water problems are a crucial and urgent issue to be resolved, in line with the company's operational sustainability efforts. Vera Galuh Sugijanto, VP General Secretary Danone Indonesia, said that her party believes that water management is sustainable, or integrated water resources management, has great strength to be one of the solutions to water availability problems.

"We also believe the important role of the private sector in supporting the success of sustainable water management in collaboration with various parties, especially the government," he said in a written statement, Wednesday, May 22.

At the High Level Panel with the theme, Integrated Water Resources Management (IWRM) on Small Islands States (SIS), Henri Bruxelles, Chief Sustainability & Strategic Business Development Danone, said water is crucial in company missions and travel. His party has taken concrete steps to support water conservation efforts, while encouraging reduction in water use and protection across the value chain, as well as increasing access to safe drinking water, in line with the company's sustainability strategy, Danone Impact Journey.

'Danone's participation in the World Water Forum 2024 is a tangible manifestation of the company's commitment to actively participate in global collective efforts to realize the Sustainable Development Goal 6, namely ensuring the sustainable availability of clean water and sanitation for people around the world. We see this forum as a means of expanding access to information and network exchanges to encourage various collective actions of water resource management programs that can answer various water problems," he explained..

The company's commitment to realizing positive water impact is lowered into the Water Danone Policy (Danone Water Policy) which focuses on three pillars, namely, protecting water resources, encouraging water circulation in the production system by reducing water use (total water use/water ratio) and providing access to clean water and sanitation through the WASH (Water Access, Sanitation and Hygiene) program for the Indonesian people.

"Danone Indonesia has succeeded in providing access to clean water for more than 500,000 people," said Vera.

In the context of efforts to protect water resources, Danone Indonesia and its partners involve the local community in managing water resources. The local community consisting of local governments, the general public, non-governmental organizations, academics and the private sector formed a forum for the Watershed (DAS) to make efforts to manage integrated water resources from upstream to downstream.

To date, Danone Indonesia has actively participated with seven watershed forums in its operational area. The watershed forums include Cisadane, Cicatih and Cibeleng, West Java; Pusur, Central Java; Rejoso, and Pandaan, East Java; and Ayung, Bali. To strengthen the implementation of good governance Danone also introduced Environmental Services Payments (PES) as a scheme to provide financial compensation for the conservation and management of good natural resources.

Danone Indonesia's commitment to running water management is also implemented in the production process, where Danone seeks to encourage the efficiency of water use in the production system. This effort is realized by reducing the use of water (Total Water Utilization/Water Ratio) which is a comparison of water used to produce 1 liter of products. The smaller the value of the ratio, the more efficient the use of water for products and production processes.

Until 2020, Danone-AQUA managed to achieve the water ratio target of 1.15 to maintain the water ecosystem. In addition, we also implemented the principles of reduce, reuse, recycle, reclaim (4R) in water utilization in all Indonesian Danone production facilities.

Danone Indonesia is working with Water.org to innovate and improve access to water and sanitation through a micro credit scheme facilitated by financial institutions or known as Water Credit. This scheme empowers the management group of rural water supply systems (SPAM) to independently develop and manage access to clean water by seeking funding from local financial institutions.

In this scheme, Danone Indonesia and Water.org provide training to these groups to prepare financial reports, plan to improve services, budget plans, and implement water access management. As a result, this program has been running in two districts in Central Java and thirty-two districts in East Java. Since its launch in 2016, this collaboration has been ongoing and has provided benefits for more than 175.000 individuals.

During the World Water Forum 2024, Danone was involved as a speaker in a number of High Level Panel sessions, thematic sessions and discussions at a number of state pavilions participating in the World Water Forum 2024 exhibition, related to solutions to water problems. Danone also opened educational facilities regarding the importance of managing water resources in one of the World Water Forum 2024 exhibition areas and meeting the hydration needs of the participants, delegates and state representatives during the event.