Kemenkop UKM Will Introduce Acceleration of Inclusive Business Ecosystems in ASEAN Inclusive Business

Deputy for Entrepreneurship of the Ministry of Cooperatives and SMEs Siti Azizah. Photo: Doc. Kemenkop UKM

BALI - The Government of Indonesia through the Ministry of Cooperatives and SMEs (Kemenkop UKM) is entrusted with hosting the 6th ASEAN Inclusive Business (IB) Summit which will be held in the Nusa Dua area, Bali, on 23-25 ​​August 2023.

"This year, the Ministry of Cooperatives and SMEs is entrusted with hosting the 6th ASEAN IB Summit. This activity is a form of support for inclusive business in the ASEAN region," said Deputy for Entrepreneurship of the Ministry of Cooperatives and SMEs Siti Azizah in a written statement, Tuesday, August 22.

Deputy Siti Azizah said, ASEAN IB has been going on since 2017 in Manila, Philippines. This forum is a formal movement to promote inclusive business in the ASEAN region. Starting in August 2020, ASEAN has guidelines for implementing inclusive business called 'Guidelines for the Promotion of Inclusive Business in ASEAN'.

The 6th ASEAN IB Summit will soon be held on 23-25 ​​August 2023. This forum is a form of concern for ASEAN leaders in introducing and implementing an inclusive business model in each member country.

There is something new that Indonesia wants to offer as the host of the 2023 ASEAN Summit to accelerate the implementation of an inclusive and sustainable business model.

"As the host of the 2023 ASEAN Summit, and based on the ACCMSME consultation, and support from UN ESCAP, Indonesia took the initiative to form a Plan of Action (PoA) to accelerate the establishment of an inclusive business ecosystem according to agreed guidelines," said Siti Azizah.

This PoA was ratified at the 55th ASEAN Economic Ministers Meeting (AEM) Conference on 19 August 2023. In addition, the PoA will serve as a guideline for cooperation between the government and the private sector, so that they have a aligned understanding and objectives regarding the model, implementation, and benefits of cross-sectoral inclusive business.

Azizah said the PoA related to inclusive business includes several things, such as policy advisory support, inclusive and sustainable business development, access to finance, and ASEAN Inclusive Business Knowledge hub/center.

"This PoA will later become material for discussion at the High Level Ministerial Session, one of the agendas of the 6th IB Summit which will be chaired directly by the Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki as chair for ministerial-level leaders in charge of MSMEs in ASEAN," she said.

She detailed, an inclusive business is a business model that can produce goods, services, and act as a commercially viable livelihood in certain business scales for people who have low incomes or are on the poverty line or what is called the Base of Pyramid (BoP).

This becomes part of the company's business value chain, both as a supplier, distributor, retailer, but it is different from other businesses.

"Because besides seeking profits, inclusive business is also innovative, the most important thing is to have an impact on society in the long term to reduce poverty," said Azizah.

Not only that, but this business concept is also different from corporate social responsibility (CSR), because the goal of inclusive business is more specific, namely to have a positive social impact on BoP circles and make it part of the business value chain.

In organizing the ASEAN IB Summit, apart from the main agenda or summit which will be held at The Mulia Resort Nusa Dua Bali, the participants will also visit East SMESCO Hub, Nusa Dua Market, Fiveelements, and the Radha Krisna Cooperative.

"We hope that this activity will help promote local cooperatives and MSMEs, especially for inclusive business people who support sustainable development in Indonesia," she concluded.