Seeing the Potential of Social Entrepreneurship in Indonesia

In the research The Asian Venture Philanthropy Network conducted a study of the trends and potential of the social economy in Indonesia, which was starting to be dominated by platforms through crowdfunding as well as sources of funds from investors. Here is a trend summary social entrepreneurship, the contribution of local entrepreneurs and the rise of local and foreign investors, who want to contribute in terms of the social economy in Indonesia.

Rise of trend through crowdfunding and crowdlending

Since the last two years, Indonesia has begun to be enlivened with through crowdfunding a platform that serves to accommodate and raise funds for users in need. One of through crowdfunding A local community that is quite popular in the country is Kitabisa, which targets social programs and invests in the social economy.

At the end of 2016 We can announced that it had managed to collect donations of Rp. 61 billion, up seven times compared to the previous year of Rp. 7,2 billion. As for the details of managing these funds, Kitabisa accommodated 3.227 campaigns and connected 192 thousand donors, with an average donation per person of IDR 289 thousand.

The biggest fundraiser that Kitabisa managed to raise was the Chiba Japan mosque with a value of IDR 3,2 billion. For other popular campaigns, such as disaster and humanity in Garut when the flash flood was Rp. 883 million and the Sumedang flood was Rp. 203 million. There is also medical assistance for the struggle for brain tumors overseas in the amount of Rp. 471 million.

Then related to national issues, for example, donations for Rio Haryanto's support amounting to Rp. 273 million, and other activities such as the Indonesian Animal Guard Shelter amounting to Rp. 285 million.

Another platform that is also quite active in Indonesia is GandengTangan. GandengTangan offers alternative solutions to help business actors and social movements to raise interest-free loan funds (crowdlending) through their site GandengTangan.org.

Different from through crowdfunding, draft crowdlending carried by HoldHand provide more opportunities for everyone who wants to take part and lend their funds, a minimum of IDR 50 thousand, with 0% interest.

Besides Kitabisa and Gandengtangan, iGrow is also present as a platform for agriculture, which can be used to obtain funding for agriculture from investors. iGrow was founded by Muhaimin Iqbal, Andreas Sanjaya, and Jim Oklahoma to connect sponsors/investors, farmers, landowners, and agricultural product buyers together. iGrow is a graduate of the 500 Startups Batch 16 acceleration program.

As a platform that embraces many parties, iGrow educate the market by providing tangible evidence of the benefits that can be made by planting. iGrow also forms a community that gets the latest information about the programs being carried out.

Local and foreign investors support social enterprise

Throughout 2015-2016, many foreign and local investors have also provided funding to startups social enterprise. Starting from agriculture, health to MSMEs, these investors are quite aggressive in investing their capital in the country. A number of social enterprise Those who got the funding were m-clinica from Unitus Impact investors and Amartha from BEENEXT and Mandiri Capital.

The existence of the social economy is also currently widely supported by a network of angel investors such as ANGIN to international organizations such as Omidyar, Kinara, and YCAB Ventures that can help the ecosystem to grow. social impacts in Indonesia.

At the end of the research, it is stated that the next challenge that will be faced by investors and entrepreneurs is related to regulations from the regulator, in this case the government, and how entrepreneurs and investors can cooperate with the government. Another challenge is how entrepreneurs and investors can expand the reach of service areas not only in Jakarta and other big cities, but also in remote cities in Indonesia.