Grant Thornton Indonesia Reveals The Vital Role Of Mid-Market Companies In A Sustainable Business Ecosystem

Photo: Doc. Grant mediate

JAKARTA - In the midst of increasing global awareness about the importance of sustainability, much attention is paid to the world's big companies because of their obligations in reporting and transparency. However, the role of mid-market sector companies -- which is a global economic driving force -- is often neglected. In fact, these companies have a very important role in creating a sustainable future.

Sustainability is now an absolute necessity for mid-market sector companies. They are under pressure from market competition, client demand, and pressure from investors, while at the same time, they must meet increasingly stringent regulations and standards. However, for many companies, this is a new area that doesn't yet have a clear roadmap or guide.

Mid-market sector companies play a vital role in global supply chains, connect and serve organizations and clients around the world. As sustainability increases in this sector, they will help large companies comply with supply chain requirements and provide examples and pave the way for small companies. Mid-market sectors are key to the sustainability of the global ecosystem, in order to carry out this role optimally, the mid-market sector needs guidance, support, and a business environment that allows them to develop.

"COMPAnIES in the mid-market sector are the backbone of the Indonesian and global economy. With sustainability increasingly becoming the main focus, we at Grantwas Indonesia are committed to helping these companies understand the challenges and take advantage of the opportunities they are traveling with towards a more sustainable future," said Anugrah Fitrah Ramadhan, Tax and Transfer Printing Director at Grant total Indonesia, in a statement, Monday 18 November.

"Sufficiency is not only about meeting regulations, but also about creating long-term value for businesses, clients, and society as a whole. We believe that with proper guidance, mid-market companies can gain significant competitive advantages," he added.

Indonesia has started implementing several green tax initiatives, although the carbon tax is still in the development stage:

The carbon tax is planned to be implemented in 2026, in line with international standards and in response to the European Union's Border Carbon Adjustment Mechanism (CBAM). The government's commitment to sustainability is reflected in the national legal framework, including the 1945 Constitution Article 33 which emphasizes sustainable economic activities while ensuring a healthy environment, as well as Law no. 32 of 2009 which focuses on protecting and managing the environment for sustainable development.

Anugrah Fitrah Ramadhan said Indonesia has a strong commitment to achieving sustainability, as reflected in the framework of national law.

"Imposition of the carbon tax in Indonesia can encourage industrial transformation towards cleaner and environmentally friendly energy," he said.

Granttenkomendasikan perusahaan mid-market beberapa hal berikut untuk mendukung upaya dalam menyambut masa depan berkelanjutan:

Badminton Immediately Take Steps To Meet Report Requirements

Increasingly complex regulations encourage the importance of faster-taked sustainability measures. Delaying the implementation of sustainability measures will only increase the costs and challenges facing the company. By starting early, the company can build up the necessary knowledge and processes to simplify the transition and reduce the challenges of implementation.

Continuation As A Competitive Advantage The Company that is successful in implementing sustainability can get significant competitive advantages. By strengthening brand reputation and attracting investment, the company will be better able to attract and maintain customers, as well as opening up new opportunities in markets that are increasingly prioritizing sustainable and more environmentally friendly business practices.

Challenges in aligning with Rapid Regulations Change Many mid-market sector companies face difficulties in adapting to rapidly developing regulations. However, with the guidance of experienced consultants, companies can better understand and navigate these challenges. The right approach will help simplify the process and accelerate their journey towards sustainability.

Cooperation with Big Companies in the Supply Chain The large companies that are already experienced in dealing with sustainability regulations need to cooperate with their partners in the mid-market sector to help them navigate regulatory challenges. This collaboration will strengthen the sustainable supply chain, reduce the risk of environmental damage and greenhouse effects, and improve efficiency and reputation for all parties involved.

Sustainability Is A Long-Term Process

The process towards sustainability is not something instantaneous. It takes time and continuous adjustments to improve strategy and reporting. The first step taken, either to carry out a sustainability assessment or to start with small initiatives, is essential to build a foundation for sustainable improvement.

Mid-market sector companies are the main drivers in both the global economy and in Indonesia, as well as have a crucial role in creating a sustainable future. With the right steps and adequate support, these companies can achieve sustainability that not only benefits them, but also for the overall business ecosystem. A sustainable mid-market sector is key to future global economic success.

"We at Grantaturah Indonesia strongly believe that sustainability is a path to a better future, not only for businesses, but also for society and the environment. We are committed to continuing to support the mid-market sector on their journey towards sustainability, so that they can create a bigger positive impact," concluded Anugrah Fitrah Ramadhan.