Southeast Asia has long been at the forefront of impact investing. And many startups and investors in Indonesia are adopting an environmental, social, and governance approach. There are many factors fostering this shift, with the main driver coming from a sudden decrease in tourism, one of the islands’ top revenue sources. We’re witnessing a rapidly growing digital ecosystem that is aligning the value of sustainability with long-term investor interests.
There has never been a better time for impact investment in Indonesia than now. According to conservative estimates, Indonesia offers an estimated USD 23 billion in impact investment opportunities over the next 5 years. With the underlying fundamentals of Indonesia staged for growth, there are various reasons to consider investing in the archipelago country.
Indonesia’s impact investing market has been on the rise, especially after 2013. The Global Impact Investing Network (GIIN) refers to Indonesia’s impact investing market as “the largest and most mature in Southeast Asia” both by “capital deployed and several deals”. Multiple sectors will be targeted by both investors and government-sponsored programs with finance, education, food and beverages, tourism and agriculture and fisheries being the industries with the most potential.
Source: Bali Investment Club