Indonesia is witnessing a significant shift in its approach to sustainability, as demonstrated by the recent Lestari Award 2026, which highlights the integration of green innovation into both corporate and community practices. According to Satrio Dwi Prakoso, chairman of the Indonesian Society of Sustainability Professionals (IS2P) and principal consultant at Sustainahaus, sustainability in Indonesia has evolved from being a peripheral corporate social responsibility (CSR) activity to becoming a core element of business strategy.

Evaluating 43 entries in the Large Enterprise category focused on environmental sustainability, Satrio noted a growing emphasis on themes such as circular economy, sustainable ecosystems, and waste management. He emphasized that these topics are increasingly linked not only to environmental goals but also to economic and social value creation. "Sustainability is starting to become part of business strategy, rather than just CSR activities. This can be seen in the many innovations that are directly linked to companies’ operational processes as well as community empowerment," he said.

Examples of this integration include initiatives like PepsiCo Sustainable Agriculture and Nathabumi, which demonstrate how businesses can embed circular economy principles into their core operations instead of merely addressing environmental concerns at the end of production cycles. Satrio highlighted that some of the most impactful innovations arise from addressing everyday, straightforward challenges. “The best innovations often emerge from simple problems encountered every day. The solutions are not always complicated, but their impact can be significant,” he pointed out.

Despite these advances, challenges persist, particularly regarding the scaling of sustainable innovations. Satrio identified the primary hurdle as limited access to necessary business models and supportive ecosystems—including funding, investor networks, and markets—that are critical for expanding pilot projects into sustainable ventures. “The biggest challenge is no longer finding ideas. What is needed is more access to funding, investors and markets so that these innovations can expand and remain viable in the long term,” he explained.

This concern underscores the importance of aligning environmental objectives with financially sustainable business strategies to ensure long-term resilience. The breadth of participants in the Lestari Award also signals the maturation and mainstreaming of Indonesia’s sustainability movement, spanning from large corporations to community-based initiatives.

“From large corporations to community-based initiatives, all show that Indonesia’s sustainability movement is becoming more mature and increasingly part of the mainstream,” Satrio concluded, reflecting a hopeful outlook for the country's green innovation trajectory.