What exactly is a social enterprise? And why does Bank DBS Indonesia care so much about nurturing them? It turns out that this business model seeks to develop solutions that can directly address social problems. Social enterprises not only seek profit but also take into account the positive impact they have on environmental sustainability and community welfare.

Data from the Creative Economy Agency (Bekraf) show that there were around 20,000 social entrepreneurs in Indonesia in 2023, up from around 15,000 in the previous year. This growing trend should be maintained due to the serious problems of income disparity, access to education, health, unemployment rates, and social inequality in Indonesia. Social enterprises can help create impactful solutions for vulnerable communities, contribute to efforts to reduce poverty levels, and apply sustainability principles in managing their businesses. Plana is one such social enterprise that processes plastic waste and rice husks into PlanaWood and PlanaBrick, sustainable and durable building materials.

With a mission to change perspectives on waste and make a big impact on the future of the planet, Plana received a grant from DBS Foundation Grant Award 2023 to expand its impact. On this occasion, DBS Foundation distributed grants totaling more than IDR8 billion to four social enterprises in Indonesia.

Now, Plana will share its journey story and tips for building a social business that creates environmental and social impacts as well as for gaining the trust of grant-giving organisations.

1. Recognises problems to find solutions

Every social business starts with a problem that needs to be solved. For Plana, as its acronym 'Plastic for Nature' implies, that problem is the mismanagement of plastic waste and rice husks.

Data from the National Waste Management Information System (SIPSN) show that in 2024, the amount of national waste reached 21.8 million tonnes. Of the total, 42.5 percent or 9.3 million tonnes were unmanaged. Moreover, plastic waste that continues to accumulate in our oceans is expected to reach 780,000 tonnes per year by 2025.

While recycling programmes are becoming more widespread, many of the solutions simply turn plastics into single-use products. This approach doesn't fully solve the problem, as the more plastic is recycled, the more its quality degrades and it still ends up as waste.

In addition, it turns out that plastic is not the only form of waste that has not been managed properly as rice husks are also a contributor to waste. Rice husk waste that is not managed properly has the potential to pollute irrigation channels and pollute the air when burned. This encouraged Plana to find different solutions by presenting PlanaWood and PlanaBrick.

Today, Plana is able to manage 8 tonnes of plastic waste and 16 tonnes of rice husks per month and process them into wood pellets. The plastic waste and rice husks are obtained from farmers and scavengers.

2. Conduct research and develop a sustainable business plan

Once you identify the problem you want to solve, the next step is to conduct business research. This research is important to gain insights into various things, such as the target market, social business regulations in Indonesia, the uniqueness of the business, the mentors who can help, what we want to give to consumers, and who the competitors are and how the competition is. Also, find out if there are similar businesses abroad and their innovators.

“Before establishing Plana, we conducted research and development (R&D) for about five years. This research covered the volume of plastic waste and rice husks wasted in the production process from polymer injection, plastic injection, to plastic composites. That's how we found the composite plastic from rice husks and plastic waste that characterizes Plana. We utilise the results of this research to develop a business plan that also considers sustainability impacts,” said Plana Co-founder & Chief of Sustainability Joshua C. Chandra.

Joshua also shared insights into developing a business plan. “For budding entrepreneurs, a business plan is essential to assess the potential sustainability of the business and attract investors. Uniquely, for social enterprises, research and business plans are not enough as we also need to consider how the solutions offered can support sustainability and the achievement of Sustainable Development Goals (SDGs),” he said.

Previously, Plana often found farmers burning rice husks, contributing to air pollution and creating toxic greenhouse gas effects. Plana then sought to overcome the problem by providing education about the importance of clean air and protecting the environment. These education and training programmes equip farmers with new knowledge to handle rice waste and enable them to earn income by selling it to the Plana network.

3. Collaborate with the right partners

From our previous research, we could not only find competitors or inspirers but we could also find collaborators. Choosing business partners who share your vision and values is key to success, especially in social business. You need to make sure that the chosen partner also has a commitment to environmental sustainability and community welfare. A good internal team ecosystem and collaboration with external parties are crucial in accelerating growth and expanding the impact of social business.

Plana is a living example of how innovation and partnership can go hand in hand. Thanks to its vision for sustainability, Plana won a grant from the DBS Foundation Grant Award 2023 after competing with more than 1,000 applicants from six countries in Asia.

Plana Co-founder & Chief of Sustainability Joshua C. Chandra said, “The support from DBS Foundation allows us to scale up production and efficiency at the factory, while obtaining the necessary certifications and patents. This has allowed us to strengthen the reputation of PlanaWood and PlanaBrick and opened up opportunities for expansion into wider markets, both nationally and internationally. It's not just about business growth, but also about creating a greater sustainability impact for the environment and society in the long run, as we believe our 'spark' is aligned with that of Bank DBS Indonesia and DBS Foundation.”

4. Conduct regular evaluation, monitoring, & measurement

Once the business is up and running, regular evaluation, monitoring, and measurement are important steps in ensuring the social business stays on track and achieves the desired impact. By conducting regular evaluations, we can understand the extent to which the strategies implemented are effective, the challenges we face, and how to overcome them. Good monitoring also helps identify opportunities for innovation and further development.

In addition to analysing profits and sales results, Plana also regularly evaluates several metrics such as the amount of plastic waste and rice husks successfully recycled, the economic benefits provided to local farmers, to operational efficiency and business sustainability.

Throughout 2024, Plana managed to process 90 tonnes of plastic waste and rice husks, thus contributing to the empowerment of local farmers. Each kilogram of rice produces around 600-700 grams of rice husks. The 3-4 harvests a year generate a significant amount of waste that is usually just burned by farmers. However, today farmers can sell the rice husks to Plana for processing, opening up new economic opportunities and improving their welfare.

“The story of Plana's journey is inspiring and serves as a spark for a group of young people who care deeply about sustainability. With organisations like Plana, we hope that more business people will turn into social entrepreneurs, finding solutions to pressing social and environmental issues. Bank DBS Indonesia and DBS Foundation are always ready to support them in accelerating their positive impact, as they are the agents of change who are building a more sustainable future for Indonesia,” said Head of Group Strategic Marketing and Communications at PT Bank DBS Indonesia Mona Monika.

The DBS Foundation Grant Award programme is a manifestation of Bank DBS Indonesia's third sustainability pillar, Impact Beyond Banking, which affirms its commitment to contributing to the wider community and environmental preservation, beyond the scope of banking. This is in line with its aspiration to be the 'Best Bank for a Better World'.

In addition to supporting social enterprises with grants, this year DBS Foundation also collaborates with The Asia Foundation, Humanist & Social Innovation Foundation, and Dicoding on social development programmes that focus on providing essential needs and fostering inclusion. Through this partnership, SGD9 million or more than Rp100 billion will be channeled to improve the welfare of vulnerable communities in Indonesia, such as women, small farmers, youth, and people with disabilities, especially in NTT and West Kalimantan. This programme is also part of DBS Foundation's SGD 1 billion commitment over the next 10 years.

For more information about DBS Foundation programs, please visit @dbsfoundationid or this page.

Converting rice husks & plastics into sustainable building materials, here are Plana’s 4 strategies to build an impactful social business