Delivering a video statement at the opening of Impact Investment Day (IID) 2024 in Labuan Bajo on Sunday (8/9/24,) Chairperson of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid said that Indonesia is not only following the global trend on the development of impact investing but is also becoming the most active investment destination in the region, according to reporting from Antara News.
Arsjad said that in recent years, impact investing in Indonesia has gained momentum as investors have become more aware of environmental, social, and governance (ESG) principles to address crucial global issues, such as poverty, inequality, and climate change.
According to Arsjad, the value of assets, managed through impact investing around the world, reached more than USD 1.1 trillion (approximately IDR 16,927.9 trillion) based on data from the Global Impact Investing Network (GIIN).
Meanwhile, according to the Australian Agency for International Development (AusAID), he noted that there were around 131 bills (RUU) secured in Indonesia from 2020 to 2022, attracting nearly USD 1.5 billion (approximately IDR 23.08 trillion in investment.
“The trend is clear, more investors are starting to adjust their portfolios to solve global issues,” Arsjad said, adding that the trend resulted in a paradigm shift as business players started to give more attention to social and environmental impacts, not only the financial profit, therefore, investors began to prioritize long-term investments that encourage a low-carbon future and sustainable development, he added.
However, the investment value is still not enough to address the increasing social gap in Indonesia, says Antara News.
“This challenge is too significant to be addressed solely by individuals, corporations, CSR (corporate social responsibility) contributions, or NGOs (non-governmental organizations),” Arsjad said.
To deal with the challenges, he said the realization of impact investing needs to be increased by formalizing social entrepreneurship, which encourages innovative solutions to address poverty and inequality, not only gaining profit.
He also said that now many social entrepreneurs help and become partners of the government in development.
“Kadin is a partner to the government. We are actively supporting the Social Enterprise Bill, which aims to create supportive legal frameworks that will allow these enterprises to thrive and attract more impact-oriented investment,” Arsjad said.
Impact Investment Day (IID) 2024 was a side event of the Indonesia International Sustainability Forum (ISF) 2024 held by Kadin Indonesia and Environmental Bamboo Foundation in Labuan Bajo, East Nusa Tenggara, from 7 to 8 September 2024, says Antara News.
The event included business pitching and match funding for selected social enterprises, including BambooCoop, EcoNusa Foundation, Jaga Semesta, Javara, Krealogi, Spedagi, Tiga Pilar Pertiwi, TORAJAMELO, Blue School, Kalara Borneo, and Riles Lestary.
Source: Antara News
Stock photo by Felix Mittermeier on Pexels
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