Impact Investment in Indonesia

Impact investment in Indonesia has seen an upward graph, especially after 2013. According to the Global Impact Investing Network (GIIN), Indonesia’s impact investing market is the largest and most mature in Southeast Asia both by “capital deployed and several deals”. 

Impact investment ecosystem in Indonesia

Indonesia has a “vibrant ecosystem” that is conducive for impact investing, “with many impact-focused business support providers”, the GIIN states in its focus report on Indonesia. 

In this blog, we will throw light on the impact investment environment in Indonesia. It’s all about the advantages that the country enjoys, the bottlenecks, and the challenges ahead.

The GIIN report lists the key characteristics of the impact investing market in Indonesia. Between the years 2007 and 2017, the local investors preferred to make deals below $500,000 of impact investing. While global investors operated between $1 and 5 million. This was concerning private impact investors (PII), which strikes most of the deals in the financial services sector, agriculture.

As far as Development Finance Institutions (DFIs) are concerned, most DFI investment deals in Indonesia range between $10 and 50 million. 

Written by: Yosy Christy Natalia