The growing awareness of the importance of sustainability has changed the consumer landscape globally. Today's consumers are not only looking for quality products, but also products that are produced in an environmentally responsible manner. This trend has created a huge opportunity for businesses that can meet the needs of an increasingly environmentally conscious consumer.
PwC Voice of the Consumer Survey 2024, which involved more than 20,000 consumers from 31 countries, revealed that consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, even amidst cost of living pressures and inflation. The survey also explained that 85% of consumers experience the disruptive impacts of climate change in their daily lives and prioritize sustainability-focused consumption.
However, for Micro, Small and Medium Enterprises (MSMEs), the transition to a more sustainable business is not an easy one. Limited resources, knowledge and access to green technology are often the main barriers for MSMEs to implement sustainable business practices. Often, MSMEs lose their competitiveness to other businesses that have more funds to invest in advanced technology and sustainability practices to attract customers.
In Thailand, there have been many accelerator programs that support the growth of sustainable MSEs. An example is the Space-F Incubator, which offers a compelling launchpad for food tech startups seeking to innovate in Thailand's vibrant culinary landscape. As the world's first global FoodTech incubator and accelerator based in Bangkok, Space-F provides unparalleled resources to participants to gain access to a global network, state-of-the-art labs and workspaces equipped with advanced machinery, and streamlined services to facilitate business establishment and growth in Thailand.
Local Business Transformation Reaching Region People
In Indonesia, there has been initiatives to foster such growth through Sentra Kreatif Lestari Siak (SKELAS) by launching the Siak Sustainable Business Incubation Program (KUBISA) that helps up to 26 MSMEs to develop their creative business solutions that can improve the local economy while preserving nature.
Dapur Mempura and Pinaloka are clear examples of the success of the SKELAS incubation program in fostering MSMEs. Both businesses have benefited greatly from the incubation program, such as business mentoring, access to markets, and product development that have successfully grown into innovative and sustainable businesses.
Born in the midst of the 2020 pandemic, Dapur Mempura brings a mission to revive the deliciousness of the Malay-style Komojo sponge cake. By using natural ingredients such as mocaf and rice bran, as well as hereditary recipes, Dapur Mempura's bolu Komojo is not only delicious, but also healthier and gluten-free.
Owner of Dapur Mempura Santi Lestari said, "It is becoming increasingly difficult for mothers to meet the needs of children who require special attention to food, such as my son who suffers from ADHD. We want to bring back the nostalgic taste of bolu Komojo that we used to enjoy as children, but with a healthier alternative for Indonesian families."
Meanwhile, Pinaloka, a women's business group in Siak, focuses on processing Siak crown pineapple into various processed products, ranging from jams, syrups, to pastries. However, behind the deliciousness of its products, there is a bigger mission, namely peatland conservation.
"Siak crown pineapple is not only planted as a food source, but it is also our way of preventing forest and land fires that often occur in peat areas. In addition to increasing the productivity of local farmers, its dense planting is also able to keep peatlands from drying out and remain viable for cultivation." said Wulan Suci Ningrum as Pinaloka Representative.
Synergy between Business, Culture, and Environmental Conservation
In addition to producing nationally competitive products, the manufacturing of products from Dapur Mempura and Pinaloka also uses a sustainable approach to boost the local economy. Both MSMEs actively involve workers as well as sustainable environmental conservation in maintaining the balance of nature.
Dapur Mempura has succeeded in reintroducing Riau culinary specialties to the younger generation through cooking demonstrations to 80 students from Pekanbaru high school. Meanwhile, it has also succeeded in sustaining the economy of Bunga Raya Village farmers in Siak by adding value to the utilization of rice bran, which is purchased at a price of Rp50,000 - 100,000 for 5 - 10 kg in one purchase because of its conversion into food raw materials.
"Usually, the rice bran is used for chicken supplies that are removed by farmers from the processed rice. Now they can sell it back as raw material for food so that the selling value also increases and increases their income," said Santi.
In the agriculture aspect, Pinaloka works with local farmers from Tanjung Kuras Village, Penyengat Village, Temusai Village and Lalang Village with a potential pineapple plantation area of 3,380 hectares, involving 33 farmers and 21 women to process pineapple products. They aim to involve 100 farmers by the end of 2024 and ensure that the average height of the peatland is 40 cm so that the land can be cultivated.
"Empty peatlands are often overgrown with bushes that become fire hotspots due to their fibrous roots and thin leaves. To overcome this, we planted crown pineapples on the land to maintain soil moisture and intercropped them with other vegetation," said Wulan.
Because of the forest and land fires in 2015, peatland cultivation now encourages young people to work together in farming in Siak District. Now, the peatlands are planted with various types of plants such as Pineapple, Durian, and Watermelon, all of which can prevent water evaporation due to extreme sun exposure.
The involvement of the local community and the sustainability of local agriculture has managed to balance the soil conditions of the peatland adjacent to the oil palm plantation, where many people visit the land more often to water the plants, thus maintaining soil moisture and preventing peatland fires.
Creating Added Value to Expand Sustainable Impacts
Skelas through Kubisa program is not only providing an incubator for Riau MSMEs but also finding new ways to collaborate.
Cerli Febri representative from Skelas said, "We always support MSMEs to continue to innovate products and further collaborate with the community to answer environmental challenges around them. By creating added value from local ingredients, we encourage them to create a business model that can involve the growth of other MSMEs."
For example, Dapur Mempura has collaborated with Pinaloka to make pastries such as pineapple tart, a household snack in Southeast Asia, which is usually enjoyed during festivities.
"This collaboration started with Pinaloka's desire to present more diverse pineapple products. We started brainstorming interesting ideas until we came up with pineapple tart, and after some trial and error, we finally managed to combine the sweet taste of pineapple with the crunchy and savory skin," said Santi.
By combining their expertise in baking and the best quality pineapple, both businesses see a big opportunity in the domestic and Southeast Asian market's interest in pineapple tart, which has become a staple snack especially during Christmas and Eid.
"For business partners, we usually sell pineapple tarts because the processing is simpler, making it more manpower-efficient, while for consumers we usually sell pineapple tarts. One of them was the delivery of 50 kg of delicious pineapple tart for Bank Indonesia's national event," said Wulan."
The success of Dapur Mempura and Pinaloka not only benefits the local economy, but also inspires other communities to adopt similar sustainable practices. By demonstrating the potential of agroforestry processing into value-added products, these businesses have helped create a more resilient and sustainable future for the people of Siak.